Summary
- Families of victims want the judge to reject the proposed plea deal available for Boeing, citing that the DoJ and the government should seek higher fines.
- Outgoing CEO to appear at a Commerce Committee looking to introduce new legislation to improve FAA oversight.
- Boeing announced its new CEO: Kelly Ortberg.
Family members of the passengers killed in the two Boeing 737 MAX crashes have now asked the federal judge presiding over the case to reject the plea deal that has been reached between the American aircraft manufacturer – Boeing and the United States Department of Justice (DoJ). It was less than a month ago since the manufacturer agreed to plead guilty and enter the plea deal, and the families of the victims believe this deal does not do justice to the lives lost and affected.
The plea deal in question
On July 7th, Boeing agreed to plead guilty to the Boeing 737 MAX 8 fraud charges and accept the plea deal that was on the table. The deal would see Boeing fined $243 million, and an independent external entity would audit the organization and its operations for three years, making public reports on Boeing’s performance regarding safety and quality compliance during the period.
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Breaking: Boeing Will Plead Guilty To 737 MAX 8 Criminal Fraud Charge Related To Deadly Crashes
Under the plea deal, the planemaker will be fined more than $243 million.
Additionally, the deal would require Boeing’s board members and the new CEO to meet the victims’ families within four months.
Photo: Marco Menezes | Shutterstock
Reports from Reuters this morning, however, suggest that the victims’ families are unhappy with the terms of the deal and want the judge overseeing this case to reject the plea deal in place, with some lawyers of the families already filing the motions in court.
An extract from the filing made by one of the lawyers – Adrian Vuckovich, states:
we suggest that Boeing should be required to pay a substantial fine which recognizes the value of each of the 346 people killed, the substantial harm to others and pay a fine which is consistent with fines paid by other corporate criminal defendants.
Families have also quoted the Judge himself – Reed O’Connor, from February 2023:
“Boeing’s crime may properly be considered the deadliest corporate crime in U.S. history.”
Committee hearing this week
While Boeing has selected its next CEO, the outgoing CEO, Dave Calhoun, is expected to appear this week at a Commerce Committee hearing. The hearing’s agenda is to set up legislation that boosts the oversight provided by the United States Federal Aviation Administration (FAA).
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Senator Calls For Boeing CEO Appearance Amid FAA Oversight Legislation Preparation
The hearing is set to take place during the first week of August.
Photo: BlueBarronPhoto | Shutterstock
While the legislation is set to identify any potential weak spots within the FAA’s Safety Management System (SMS) and make suggestions on improving its efficiency to increase the FAA’s oversight in the future, it is closely linked to another mandate that comes under Boeing’s plea deal.
During its three-year independent external audit period, the manufacturer must invest $455 million in its compliance and safety programs to ensure it meets the industry standard.
A new CEO
Just yesterday, the manufacturer announced that Kelly Ortberg, previously of Collins Aerospace and Rockwell Collins, will take over the reins on August 8th. Considering there was much debate about the new candidate being someone from outside the existing board of the company, appointing Ortberg has definitely ticked the box, as the new CEO will be an external candidate.
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Breaking: Boeing Selects Its New CEO
Ex-Rockwell Collins Leader, Kelly Ortberg, has been picked for the top job.
It remains to see how the organization will change under the new leadership, but it is certain that Ortberg definitely has his work cut out for him.
While Boeing has been through a rough patch these past few years, considering the 96 firm aircraft orders and 22 options secured by the manufacturer during the Farnborough Airshow last week, it is certain that airlines around the world still have faith in Boeing. While there is work to be done, including some internal restructuring, it is possible for Boeing to reform itself under the new leadership and rebuild itself.