Summary
- The families of the victims of the two fatal Boeing 737 MAX crashes urged the DOJ to fine Boeing $24.8 billion.
- The fine could be lowered if some of those funds were to be invested in quality and safety processes.
- The suggested fine came shortly after David Calhoun, the president and CEO of Boeing, testified in front of a US Senate Subcommittee.
The victims of the two fatal Boeing 737 MAX crashes, which claimed the lives of 346 people, have asked the Department of Justice (DOJ) to impose a $24.7 billion fine on Boeing since the manufacturer allegedly committed the “deadliest corporate crime in US history.”
Partially suspended if invested in safety
According to a letter sent to the DOJ by Paul Cassell, the counsel for 15 Boeing 737 MAX crash victims’ families, Boeing’s crime produced losses in excess of $12.3 billion, making the maximum possible fine of $24.7 billion legally justified and appropriate.
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However, Cassell said that the fine could be partially suspended if those funds would be used to improve quality control and safety measures at Boeing. The counsel also added that the victims’ families believed in the aggressive criminal prosecution of the aircraft manufacturer, with Cassell citing the Speedy Trial Act, asking the DOJ to set a jury trial date within 70 days of July 7, 2024.
“If Boeing requests plea negotiations, the Department should not offer Boeing any concessions. If the Department seems likely to reach a tentative agreement with Boeing on plea concessions, the families request an opportunity to exercise their right under the CVRA [Crime Victims’ Rights Act – ed. note] to confer with the Department about any possible concessions.”
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Criminal prosecution the preferred way forward
In a meeting where the victims’ families and the DOJ were present, the latter outlined that there were four options on how to proceed against Boeing. The DOJ’s suggestion was a criminal prosecution, a view that was supported by the families.
According to Cassell, the sentiment at a hearing at the United States Senate Permanent Subcommittee on Investigations on June 18 was that US lawmakers also supported a criminal prosecution against Boeing.
Photo: Thiago B Trevisan | Shutterstock
The hearing included a testimony by David Calhoun, the president and chief executive officer (CEO) of Boeing. Calhoun replaced the former CEO, Dennis Muilenburg, whom Cassell outlined as one of the corporate officials that the DOJ should prosecute for their role in the two fatal Boeing 737 MAX crashes.
“The Department’s sister agency—the Securities and Exchange Commission [SEC – ed. note] —has usefully laid out the evidence that Muilenburg (for example) was directly and personally involved in concealing MCAS [Maneuvering Characteristics Augmentation System – ed. note] problems from the public and thus also from the FAA [Federal Aviation Administration – ed. note] and others.”
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While Boeing had already had a plea deal with the DOJ over the two fatal 737 MAX crashes – including the DOJ ruling that the aircraft manufacturer potentially violated the deferred prosecution agreement – the latest hearing was just one of many developments focused on Boeing’s quality and safety management following the Alaska Airlines mid-air door plug blowout in January.
Photo: Ryan Fletcher | Shutterstock
In his written testimony, Calhoun began his speech by apologizing to the victims’ families of the two fatal Boeing 737 MAX crashes. The CEO said that the company sought ways to honor the memory of those people who lost their lives daily, including “a steadfast commitment to safety and quality.”
“Much has been said about Boeing’s culture. We’ve heard those concerns loud and clear. Our culture is far from perfect, but we are taking action and making progress. We understand the gravity, and we are committed to moving forward with transparency and accountability, while elevating employee engagement.”
The investigation and subsequent hearings, including one in April, led by the US Senate Permanent Subcommittee on Investigations, were launched following a whistleblower’s allegations about the Boeing 777 and 787 programs.
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