Latest news with #737Max
Bloomberg
7 hours ago
- Business
- Bloomberg
Boeing Says New Model to Replace 737 Max Not a Priority: FT
Launching a new aircraft to replace the best-selling Boeing 737 Max isn't an immediate priority, the aircraft manufacturer's Chief Executive Officer Kelly Ortberg told the Financial Times in an interview. The market isn't ready for the model, he said, adding that Boeing is also not currently in a financial position to invest in the development of new planes.
Yahoo
2 days ago
- Business
- Yahoo
Justice Department drops criminal case against Boeing, sparking outrage from crash victims' families
The Department of Justice has decided to drop its criminal case against Boeing despite the company agreeing to plead guilty last year to its role in two fatal 737 Max crashes that killed 346 people. The decision to drop the case against Boeing is another sign the Trump administration has been going easier on prosecuting corporate misdeeds than the Biden administration. The decision sparked harsh criticism from some of the families of victims of the two fatal crashes. 'The Department of Justice is trying to sweep the errors and mistakes of Boeing and the FAA under the rug,' said a statement from Chris Moore, who lost his daughter Danielle in the 2019 Ethiopian Airlines crash. 'It is said that Justice is supposed to be blind for it to be fair, but the prosecutors are blind to the facts of this case. Boeing has already admitted their criminality - it's a no-brainer in terms of prosecuting Boeing in a court of law.' The Justice Department did not respond to CNN's request for comment but said in its filing that the decision to drop the criminal case against Boeing and instead reach a non-prosecution agreement (NPA) was the right decision given what could be proved in the case. 'After careful consideration of the families' views, the facts and the law … it is the government's judgment that the agreement is a fair and just resolution that serves the public interest,' the Justice Department said in the filing. 'The agreement guarantees further accountability and substantial benefits from Boeing immediately, while avoiding the uncertainty and litigation risk presented by proceeding to trial.' The NPA includes Boeing agreeing to pay an additional $444.5 million in victim compensation, on top of the $500 million it had already paid. But it freed Boeing from having to plead guilty to defrauding the Federal Aviation Administration during the process of seeking certification for the 737 Max to begin carrying passengers. A design flaw in the 737 Max that was not revealed during that process has been tied to the two crashes. It also frees Boeing from being under the oversight of a federally appointed monitor who would have ensured the company was making promised improvements in the quality and safety of its aircraft. That federal monitor would have been part of the guilty plea Boeing agreed to in July. Instead, Boeing itself will hire an outside contractor to oversee its operations, rather than having one chosen for it. Boeing said Thursday it is committed to improving in its safety record and company culture. 'We are deeply sorry for their losses, and remain committed to honoring their loved ones' memories by pressing forward with the broad and deep changes to our company,' Boeing said in its statement. In the final days of the first Trump administration, Boeing agreed to a 'deferred prosecution' settlement on the same charges that could have relieved it of ever facing criminal prosecution. But in January 2024, days before a three-year probationary period on that original agreement ended, a door plug blew out of the side of a 737 Max flown by Alaska Air. While no one was killed in that incident, it opened the door for the Justice Department to again resume prosecution of the company. Six months later, Boeing agreed to the guilty plea. But even while agreeing to the plea agreement, the company said it did not feel it had violated an earlier deferred prosecution agreement. In December, a federal judge rejected that earlier plea agreement. He objected to the agreement that called for the Justice Department to pick the monitor, and not the court itself. 'It is fair to say the government's attempt to ensure compliance has failed,' Judge Reed O'Connor wrote in his opinion. '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.' But once he rejected that plea agreement, Boeing decided to move forward with challenging the case in court rather than agreeing to plead guilty. The Justice Department cited the lack of an agreement to plead guilty in its decision to drop the criminal case. In a statement two weeks ago, the Justice Department also said it had met with a broad range of the victims' families while considering what to do next. 'While they are all experiencing grief, they hold a broad set of views regarding the resolution, ranging from support to disagreement,' the Justice Department said in that earlier statement. Many of the families had not been happy with the original plea agreement, seeking to have criminal prosecution of individual executives at Boeing, and much steeper financial penalties than the $487 million in fines that Boeing had agreed to pay, an amount that is included in the NPA. The attorneys for the family said that they will seek to have the judge reject this NPA. 'This kind of non-prosecution deal is unprecedented and obviously wrong for the deadliest corporate crime in U.S. history. My families will object and hope to convince the court to reject it,' Paul Cassell, one of the attorneys representing the families, said in a statement.
CNN
2 days ago
- Business
- CNN
Justice Department drops criminal case against Boeing, sparking outrage from crash victims' families
The Department of Justice has decided to drop its criminal case against Boeing despite the company agreeing to plead guilty last year to its role in two fatal 737 Max crashes that killed 346 people. The decision to drop the case against Boeing is another sign the Trump administration has been going easier on prosecuting corporate misdeeds than the Biden administration. The decision sparked harsh criticism from some of the families of victims of the two fatal crashes. 'The Department of Justice is trying to sweep the errors and mistakes of Boeing and the FAA under the rug,' said a statement from Chris Moore, who lost his daughter Danielle in the 2019 Ethiopian Airlines crash. 'It is said that Justice is supposed to be blind for it to be fair, but the prosecutors are blind to the facts of this case. Boeing has already admitted their criminality - it's a no-brainer in terms of prosecuting Boeing in a court of law.' The Justice Department did not respond to CNN's request for comment but said in its filing that the decision to drop the criminal case against Boeing and instead reach a non-prosecution agreement (NPA) was the right decision given what could be proved in the case. 'After careful consideration of the families' views, the facts and the law … it is the government's judgment that the agreement is a fair and just resolution that serves the public interest,' the Justice Department said in the filing. 'The agreement guarantees further accountability and substantial benefits from Boeing immediately, while avoiding the uncertainty and litigation risk presented by proceeding to trial.' The NPA includes Boeing agreeing to pay an additional $444.5 million in victim compensation, on top of the $500 million it had already paid. But it freed Boeing from having to plead guilty to defrauding the Federal Aviation Administration during the process of seeking certification for the 737 Max to begin carrying passengers. A design flaw in the 737 Max that was not revealed during that process has been tied to the two crashes. It also frees Boeing from being under the oversight of a federally appointed monitor who would have ensured the company was making promised improvements in the quality and safety of its aircraft. That federal monitor would have been part of the guilty plea Boeing agreed to in July. Instead, Boeing itself will hire an outside contractor to oversee its operations, rather than having one chosen for it. Boeing said Thursday it is committed to improving in its safety record and company culture. 'We are deeply sorry for their losses, and remain committed to honoring their loved ones' memories by pressing forward with the broad and deep changes to our company,' Boeing said in its statement. In the final days of the first Trump administration, Boeing agreed to a 'deferred prosecution' settlement on the same charges that could have relieved it of ever facing criminal prosecution. But in January 2024, days before a three-year probationary period on that original agreement ended, a door plug blew out of the side of a 737 Max flown by Alaska Air. While no one was killed in that incident, it opened the door for the Justice Department to again resume prosecution of the company. Six months later, Boeing agreed to the guilty plea. But even while agreeing to the plea agreement, the company said it did not feel it had violated an earlier deferred prosecution agreement. In December, a federal judge rejected that earlier plea agreement. He objected to the agreement that called for the Justice Department to pick the monitor, and not the court itself. 'It is fair to say the government's attempt to ensure compliance has failed,' Judge Reed O'Connor wrote in his opinion. '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.' But once he rejected that plea agreement, Boeing decided to move forward with challenging the case in court rather than agreeing to plead guilty. The Justice Department cited the lack of an agreement to plead guilty in its decision to drop the criminal case. In a statement two weeks ago, the Justice Department also said it had met with a broad range of the victims' families while considering what to do next. 'While they are all experiencing grief, they hold a broad set of views regarding the resolution, ranging from support to disagreement,' the Justice Department said in that earlier statement. Many of the families had not been happy with the original plea agreement, seeking to have criminal prosecution of individual executives at Boeing, and much steeper financial penalties than the $487 million in fines that Boeing had agreed to pay, an amount that is included in the NPA. The attorneys for the family said that they will seek to have the judge reject this NPA. 'This kind of non-prosecution deal is unprecedented and obviously wrong for the deadliest corporate crime in U.S. history. My families will object and hope to convince the court to reject it,' Paul Cassell, one of the attorneys representing the families, said in a statement.
New York Post
2 days ago
- Business
- New York Post
Families of victims in crashes plan objection to Boeing's deal with DOJ
The Department of Justice (DOJ) has reportedly informed victims' families of two fatal Boeing 737 MAX8 aircraft crashes that it is dismissing criminal fraud charges against the airplane manufacturer, though families plan to object to the filing. Clifford Law Offices said in a news release that the DOJ sent a letter to families on Thursday, informing them the government agency had filed a motion to dismiss the criminal fraud matter against Boeing. Instead, the DOJ said it filed a non-prosecution agreement (NPA) against Boeing regarding two 737 MAX 8 planes that crashed six years ago and killed 346 people. The DOJ sent the letter as part of the federal Crime Victims' Rights Act, which requires it to inform crime victims of their actions. Pro bono lawyer Paul Cassell, who also works as a professor at the S.J. Quinney College of Law at the University of Utah, represents several families of victims, and they have advised U.S. District Court Judge Reed O'Connor about their intentions to object to the DOJ's motion. 4 The Department of Justice has reportedly informed victims' families of two fatal Boeing 737 MAX 8 aircraft crashes that it is dismissing criminal fraud charges against the airplane manufacturer. AP The families were informed nearly a week after the DOJ said it had struck a tentative deal with Boeing that allows the company to avoid criminal prosecution for allegedly misleading regulators about the company's 737 Max plane before two crashes that killed 346 people. Under the deal, Boeing will pay out $1.1 billion, including $445 million to a fund for the crash victims' families, the DOJ said in court documents last week. In exchange, the DOJ will dismiss a fraud charge against the aircraft manufacturer. 4 The DOJ said it filed a non-prosecution agreement (NPA) against Boeing regarding two 737 MAX 8 planes that crashed six years ago and killed 346 people. REUTERS The DOJ did not immediately respond to FOX Business's request for comment on the matter. The news release noted that the families had been asking for a meeting with U.S. Attorney General Pam Bondi since Feb. 6, with hopes of meeting before a final decision was made. The law firm said the families had never heard back, as of Thursday. 4 Forensics investigators and recovery teams collect personal effects and other materials from the crash site of Ethiopian Airlines Flight ET 302 on March 12, 2019 in Bishoftu, Ethiopia. Getty Images 'Boeing must continue to improve the effectiveness of its anti-fraud compliance and ethics program and retain an independent compliance consultant,' the department said last week. 'We are confident that this resolution is the most just outcome with practical benefits.' Last year, Boeing agreed to plead guilty to a criminal fraud conspiracy charge after two fatal 737 Max crashes in Indonesia and Ethiopia in 2018 and 2019. The company previously agreed to pay a fine of up to $487.2 million and face three years of independent oversight. The deal announced last Friday did not go over well with relatives of those killed in the crashes. 4 U.S. investigators examine recovered parts of the Lion Air jet that crashed into the sea on Monday, at Tanjung Priok Port in Jakarta, Indonesia, Thursday, Nov. 1, 2018. AP 'This kind of non-prosecution deal is unprecedented and obviously wrong for the deadliest corporate crime in U.S. history. My families will object and hope to convince the court to reject it,' Cassell said. Boeing has faced increased scrutiny from the Federal Aviation Administration (FAA) since January 2024, when a new Max 9 missing four key bolts had a midair emergency, losing a door plug, Reuters reported. The FAA has capped production at 38 planes per month. Last year, the DOJ found Boeing had violated a 2021 agreement that shielded the plane-maker from prosecution.
American Military News
2 days ago
- Business
- American Military News
US asks judge to dismiss criminal charge over Boeing 737 Max crashes
The U.S. Justice Department asked a federal judge in Texas to dismiss its criminal case against Boeing Co. over two fatal crashes of its 737 Max jets more than six years ago, despite objections of family members of some crash victims. The request, disclosed Thursday in a court filing, is part of a proposed settlement prosecutors reached with the planemaker last week. The case had been set to go to trial June 23. The government's agreement calls for Boeing to pay more than $1.1 billion in fees and fines, while taking steps to strengthen internal quality and safety measures. In return, the company will avoid criminal prosecution. It is a notable reversal in the long-running criminal case against Boeing over two fatal crashes of its 737 Max jet in 2018 and 2019 that killed 346 people. Just last year, Boeing had agreed to plead guilty to the pending criminal conspiracy charge under a deal that was ultimately rejected by U.S. District Judge Reed O'Connor, who has been overseeing the case since it was filed in 2021. Prosecutors said in the filing that their deal with the company 'secures meaningful accountability, delivers substantial and immediate public benefits, and brings finality to a difficult and complex case whose outcome would otherwise be uncertain.' While the government said some relatives of the crash victims didn't oppose the agreement, other family members plan to file a formal objection with the judge. 'Miscarriage of justice' 'Any resolution that allows Boeing to walk away without an admission of guilt is a miscarriage of justice,' Erin Applebaum, a partner at Kreindler & Kreindler LLP, said in a statement. 'We trust the court will see the agreement for what it is and reject the government's efforts to let Boeing escape accountability for the deaths it caused.' Boeing said in a statement it is committed to complying with its obligations under the agreement, including 'substantial additional compensation' for family members of crash victims. 'We are deeply sorry for their losses, and remain committed to honoring their loved ones' memories by pressing forward with the broad and deep changes to our company that we have made to strengthen our safety system and culture,' Boeing said. The new agreement is similar in many respects to the proposed plea deal that was rejected last year, with one notable exception: Boeing will not plead guilty to the pending criminal charge. Instead, the company will admit to the underlying accusation of 'conspiracy to obstruct and impede the lawful operation of the Federal Aviation Administration Aircraft Evaluation Group,' but that admission does not constitute a guilty plea. However, the government could refile criminal charges against the company if Boeing is accused of violating the terms of the agreement, which has a term of two years. Deal terms The agreement requires Boeing to pay a total of $1.1 billion in assorted fines and fees. The total includes: —$487.2 million for a criminal penalty, half of which the company already paid to the government during an earlier phase of the case —$444.5 million for a new 'Crash-Victims Beneficiaries Fund' that will be divided evenly by crash victim —$455 million in investments to bolster its compliance, safety and quality programs Boeing would be required to retain a so-called independent compliance consultant to oversee its efforts to improve the effectiveness of its anti-fraud compliance and ethics program. The consultant will be expected to make recommendations for improvements and report their findings directly to the government. In December, O'Connor rejected the company's proposed plea deal because he said it would improperly require race to be considered in the hiring of an independent monitor to review Boeing's actions. The new proposed agreement states that selection of the independent consultant 'will not take into account or otherwise engage in unlawful discrimination based on race, gender, or any other protected class.' Victims' families Finally, the agreement calls for family members of crash victims to have the opportunity to meet with Boeing's board of directors and speak to them about the impact of the company's conduct and about its compliance and safety programs. Relatives have spent years fighting for harsher penalties for Boeing and have opposed past attempts to resolve the case. Both crashes were linked to a flawed flight control system on 737 Max jets. The only Boeing official to face trial was a mid-level manager overseeing the pilot manuals and training materials. He was acquitted. 'While my client and I wanted to see a more vigorous prosecution, my hope is that the criminal case and the lawsuits motivated Boeing to improve safety,' Mark Lindquist, one of the attorneys for the victims' families, said Thursday. 'That's what truly matters.' In 2021, the company reached a deal with the government to defer prosecution in the criminal case, assuming it met certain requirements while under a period of government supervision. Last year, two days before the supervision period was set to conclude and the charge would have been dismissed, a door-sized plug blew out of an airborne 737 Max. While no one was killed, the accident led to investigations and findings of lax controls in Boeing's factories. The case is U.S. v. Boeing, 21-cr-005, U.S. District Court, Northern District of Texas (Fort Worth). ___ © 2025 Bloomberg L.P. Distributed by Tribune Content Agency, LLC.
