Family members of passengers who perished in the two Boeing 737 MAX crashes have urged the federal judge overseeing the case to reject a recently reached plea deal between Boeing and the United States Department of Justice (DOJ). Less than a month ago, Boeing agreed to plead guilty and accept the plea deal. However, the families of the victims believe that the deal inadequately addresses the loss of lives and the impact on those affected.

Details of the Plea Deal

On July 7th, Boeing consented to plead guilty to charges of fraud related to the Boeing 737 MAX 8. The agreement includes a $243 million fine and mandates a three-year audit by an independent external entity, which will publicly report on Boeing’s adherence to safety and quality standards during this period. Additionally, Boeing’s board members and the new CEO, Kelly Ortberg must meet with the victims’ families within four months.

However, recent reports from Reuters indicate that the victims’ families are dissatisfied with the plea deal’s terms. Several families’ lawyers have already filed motions in court, requesting the judge to reject the deal. One such lawyer, Adrian Vuckovich, stated, “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.”

The families have also referenced Judge Reed O’Connor’s remark from February 2023, where he labeled Boeing’s crime as potentially “the deadliest corporate crime in U.S. history.”

Upcoming Committee Hearing

This week, outgoing Boeing CEO Dave Calhoun is expected to testify at a Commerce Committee hearing. The hearing aims to draft legislation to enhance the oversight capabilities of the United States Federal Aviation Administration (FAA). This legislation will identify weaknesses within the FAA’s Safety Management System (SMS) and propose improvements to increase FAA oversight in the future. This initiative is closely linked to Boeing’s plea deal mandate, which requires the company to invest $455 million in compliance and safety programs over the next three years.

Leadership Changes at Boeing

In a significant development, Boeing announced yesterday that Kelly Ortberg, formerly of Collins Aerospace and Rockwell Collins, will assume the CEO role on August 8th. Ortberg’s appointment, coming from outside the existing board, has been met with approval, addressing much of the prior debate regarding the new leadership candidate.

Despite the recent challenges, Boeing’s future shows promise. The manufacturer secured 96 firm aircraft orders and 22 options during the Farnborough Airshow last week, demonstrating continued confidence from airlines worldwide. Although internal restructuring and reforms are necessary, there is optimism that Boeing can rebuild and thrive under Ortberg’s leadership.

• Featured image by Jeffry Surianto | Pexels