Judge Rejects Boeing Appeal Over 2 Fatal Plane Crashes

A Federal Judge on Thursday rejected a plea from aircraft manufacturer Boeing Company that sought to avoid criminal prosecution over the crashes of two 737 Max aircraft that claimed the lives of 346 individuals.

In his ruling, US District Judge Reed O’Connor sided with the family members of people killed in the crashes of Lion Air in 2018 and Ethiopian Airlines in 2019, who urged him to reject the plea.

O’Connor said he hoped the ruling would lead to a renegotiation to give justice to the passengers and crew who died in the crashes.

He also said that the provisions in Boeing’s proposed settlement would wrongly mandate the consideration of race in hiring an independent monitor, and that his role in ensuring Boeing complies with the agreement would be reduced.

“These provisions are inappropriate and against the public interest,” O’Connor was quoted as saying in a report.

Family members of crash victims have fought for years to get harsher penalties following the crashes linked to a flawed flight control system. Relatives called Boeing’s appeal a “sweetheart deal” that failed to hold it accountable for the incidents.

O’Connor’s decision marked as a fresh setback on Boeing’s push to get back on track after another crisis that began when a door-sized panel blew off an airborne 737 Max operated by Alaska Airlines.

The catastrophe led to revelations of alleged poor quality controls inside Boeing’s factories, attracted increased scrutiny from regulators and customers, and resulted in a management shakeup that included the ouster of the company’s chief executive officer.

Following the incident, Boeing saw its stock price declined by nearly 1 percent on the New York Stock Exchange. Its share price plummeted by 39 percent this year alone, marking the biggest decline on the Dow Jones.

Earlier this year, Boeing had agreed with the US Justice Department to plead guilty to criminal conspiracy, pay a fine and install an independent corporate monitor. 

In addition, it was required to spend at least $455 million to bolster its compliance and safety programs.

“It is fair to say the Government’s attempt to ensure compliance has failed,” O’Connor said.

“At this point, the public interest requires the Court to step in. Marginalizing the Court in the selection and monitoring of the independent monitor as the plea agreement does undermines public confidence in Boeing’s probation, fails to promote respect for the law, and is therefore not in the public interest,” he added.