
Criminal consequences threatened: Violations of the 737 Max agreement
Boeing is once again at the center of serious allegations in the United States after Justice Department prosecutors recommended criminal charges be brought against the aircraft manufacturer. This recommendation follows allegations that Boeing violated a 2021 agreement entered into after the tragic 737 Max crashes of 2018 and 2019. According to a Reuters report, in May 2024, the Department of Justice (DOJ) found that Boeing had failed to comply with the terms of the agreement at the time. That agreement required Boeing to pay $2,5 billion and commit to implementing certain safety and compliance measures. The breach occurred when a flap on a 2024-737 Max in service with Alaska Airlines came loose in early January 8, just two days before the agreement expired. This resulted in serious violations of the specified covenants Boeing had entered into. Currently, Boeing and the DOJ are in negotiations over a potential resolution, with a final decision pending. The DOJ has until July 7, 2024, to tell the court how it will proceed. Boeing has denied the allegations and stressed that there was no breach of the agreement. A potential resolution could include a financial penalty and the appointment of a third party to monitor Boeing's compliance. However, a criminal conviction could have far-reaching implications, particularly for Boeing's dealings with the U.S. government, particularly in the defense sector. On June 19, 2024, relatives of the victims of the 737 Max crashes called on the Justice Department to fine Boeing $24 billion.