Boeing Admits to Criminal Deception, Faces Imminent Prison Sentence: The Masterminds Revealed
Boeing's Troubles Continue: Fraud Charges, Oxygen Mask Issues, and More
Boeing is still swimming in a whirlpool of troubles, with the recent criminal fraud charges adding to the mix. In less than a week, Boeing will plead guilty to deceiving the Federal Aviation Administration (FAA) about the safety of its planes, a move that could cost the aviation giant an additional $243.6 million. But, no employees are expected to see the inside of a jail cell.
The charges against Boeing stem from two tragic incidents: the 2018 crash of a 737 Max in Indonesia that claimed 189 lives, and the 2019 crash in Ethiopia that led to the death of 157 souls. Investigations following the disasters uncovered a multitude of safety concerns within Boeing. In fact, one employee referred to the Max as a "clown-designed plane" back in 2017.
Specifically, Boeing will cop to conspiring to defraud the government by deceiving the FAA about the safety of its planes. This guilty plea is a revisitation of a 2021 settlement with the Department of Justice, where Boeing dodged criminal prosecution initially. However, it seems the department claims Boeing violated the original deal and had until this past weekend to plead guilty or face trial.
The families of the victims from the Ethiopian Airlines crash in 2019 are far from satisfied with the situation. Zipporah Kuria, who lost her father in the tragedy, called the justice system's handling of the case a "gross understatement." She expressed her hope that if another disaster were to occur, the DOJ would remember they had the power to do more.
Though this guilty plea is related to events before the crashes, Boeing's woes are far from over. The plea deal only addresses conduct prior to the crashes and does not grant immunity for other recent issues. For instance, in January of this year, a door plug fell off a 737 Max flight operated by Alaska Airlines.
On a related note, the FAA has ordered inspections of oxygen masks on 2,600 Boeing planes. The concern lies with masks on 737 MAX and NG planes shifting out of position, compromising their effectiveness.
The DOJ hasn't yet responded to questions about the pending Boeing case. Gizmodo will update this post if we hear any new developments.
Aside from the guilty plea and the oxygen mask issue, Boeing continues to grapple with a host of challenges. For one, the FAA has imposed a production cap of 38 737 MAX planes per month due to safety and quality control concerns. The regulatory body has also tightened its oversight, including increased inspections and refusing to delegate certification tasks to Boeing until systemic issues are addressed.
These challenges have had a significant impact on Boeing's financial performance. The company reported a $4 billion deficit in the fourth quarter of 2024, with a delivery total of 348 planes for the year, a substantial drop from the previous year's 528. A machinists' strike in late 2024 further hampered production. New CEO, Kelly Ortberg, is engaged in efforts to stabilize production and restore trust with stakeholders.
Meanwhile, Boeing is battling opposition to its request for a temporary exemption from the FAA to certify the 737 Max 7 and 10 without completely meeting new software requirements for the stall-management yaw damper. The Air Line Pilots Association and other groups are opposed to the exemption, citing safety concerns. Boeing is developing enhanced angle-of-attack safety features for all Max variants, contingent on the exemption being granted.
In summary, Boeing faces an uphill battle in regaining trust and improving safety standards, crucial factors for lifting production caps and resolving legal issues associated with the 737 Max.
- Despite the upcoming guilty plea, Boeing's immunity does not extend to other recent issues such as the door plug incident on a 737 Max flight.
- The DOJ's handling of the Boeing case, specifically the Ethiopian Airlines crash in 2019, has left family members of the victims like Zipporah Kuria unsatisfied.
- In addition to the guilty plea and the oxygen mask issue, Boeing is battling opposition to its request for a temporary exemption from the FAA for the 737 Max 7 and 10.
- The future of Boeing relies on significant improvements in safety standards and regaining stakeholder trust, as these factors are key to lifting production caps and resolving legal issues associated with the 737 Max.
