Risk of criminal prosecution | Boeing must present its arguments by Thursday

(New York) The aircraft manufacturer Boeing must respond on Thursday at the latest to the Department of Justice, which warned in mid-May of a risk of criminal prosecution for non-compliance with an agreement concluded after two crashes causing 346 dead.


The Bloomberg agency reported late Wednesday that Boeing had sent its response during the day, denying any violation.

In the process, the manufacturer refused to make any comments regarding its communications with the Department of Justice (DOJ), specifying “to continue to dialogue in full transparency” with it.

The agreement concluded in 2021 provides, among other things, that Boeing strengthens its compliance program, but the aircraft manufacturer has been increasing production and quality control problems since the beginning of 2023.

A subject which will undoubtedly be addressed during a hearing Thursday morning in the American Senate of the head of the civil aviation regulator (FAA).

Mike Whitaker, in office since October 2023, must indeed – coincidence of timing – be heard by the Committee on Trade and Transport concerning the supervision of the aeronautics sector and, in particular, of Boeing.

PHOTO JOSE LUIS MAGANA, ASSOCIATED PRESS ARCHIVES

Mike Whitaker

The aircraft manufacturer has been surrounded on all sides since the in-flight incident on an Alaska Airlines 737 MAX 9 on January 5, in which a cap holder – a cover blocking a redundant emergency exit – came loose.

One case too many, which triggered audits and investigations by regulators, justice, and parliamentary committees. This work identified non-compliance issues in production and quality control deficiencies.

In a letter sent on May 14 to the judge of a Texan federal court, the department considered that Boeing had “not respected its obligations” provided for in the so-called deferred prosecution agreement (DPA) signed on January 7, 2021 and linked to the crashes of 2018 and 2019.

Accused of fraud in the certification process of the 737 MAX – its flagship plane – Boeing agreed to pay $2.5 billion.

In addition, the group committed to strengthening its compliance program, meeting regularly with those responsible for combating fraud and presenting annual reports on its progress.

The agreement provided for this monitoring to expire after three years. Or January 7, 2024.

“Great fears”

The Department of Justice then had six months to position itself and then decide whether or not to initiate proceedings.

The families of victims of the two accidents – due to a design problem – have been clamoring for them since the very beginning, and even more so since the manufacturer’s series of setbacks.

Received on May 31 at the Department of Justice in Washington, they expressed their “great fears” that he would opt for a guilty plea agreement with Boeing, according to a press release from their lawyers.

“We expect the department […] a plan to prosecute conspiracy and other related charges. During this meeting, the families charged the Department of Justice to fulfill its mission of providing justice to the general public,” they continued.

“A simple amicable transaction without sanction would not fulfill this mission,” they warned, demanding the opening of a trial within 70 legal days following July 7.

The Department of Justice, which did not respond to requests from AFP, undertook in May to communicate its decision to the Texas court no later than that date.

Contacted by AFP, Boeing simply referred to its statements of May 14: “We believe we have honored the conditions of this agreement.”

The next few weeks promise to be just as eventful for the aircraft manufacturer with the highly anticipated hearing of its boss Dave Calhoun on June 18 by a Senate commission of inquiry, before which four whistleblowers testified in mid-April.

Appointed general manager in early 2020 to restore the situation after the crashes, Mr. Calhoun was swept away by the current crisis and must leave his post by the end of the year.

The presentation of the second quarter results, scheduled for the end of July, should not be a cakewalk.

Its financial director Brian West warned at the end of May that the group no longer anticipated generating cash in 2024.

Over the first five months of the year, Boeing garnered 142 gross orders (103 net) and delivered 131 aircraft, compared to 223 and 206 respectively a year earlier. The last two months have been moribund, generating just 11 gross orders.

Another difficult meeting: the American Transportation Safety Agency (NTSB) has scheduled a so-called investigative hearing for August 6 and 7 concerning Alaska Airlines Flight 1282. According to his preliminary report, several bolts securing the cap holder were missing.


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