737 Max crashes: USA is investigating criminal proceedings against Boeing

737 Max crashes: USA is investigating criminal proceedings against Boeing

After two fatal crashes of 737 Max aircraft, Boeing has so far largely been spared criminal consequences in the USA. But that could change soon.

According to the US Department of Justice, aircraft manufacturer Boeing can be prosecuted for two fatal crashes involving 737 Max aircraft around five years ago. The company violated obligations under an agreement that shielded Boeing from criminal prosecution over the crashes, the ministry said in a letter Tuesday. The next steps will be examined.

The letter said Boeing failed to develop, implement and enforce a compliance and ethics program to prevent and detect violations of U.S. fraud laws. U.S. Justice officials said such a violation would mean Boeing could be prosecuted for any violation of federal law related to the crashes. Under the agreement with the US government, Boeing paid a penalty of $243 million, about 225 million euros. The allegations of fraud in connection with the information provided to the US authorities were not pursued further. However, something like a probationary rule applied with the central requirement that Boeing implement a compliance and ethics program.

Boeing had to submit a plan to improve quality controls

Boeing told AFP the company believed it had complied with the terms of the agreement. A total of 346 people died in the two crashes in October 2018 and March 2019 in Indonesia and Ethiopia respectively.

The Max aircraft had to remain on the ground for a long time after the two crashes until Boeing carried out improvements. This year, the company was once again targeted by the authorities due to a dramatic incident. In January, a virtually new Boeing 737-9 Max from the US airline Alaska Airlines had a fuselage fragment fall out during climb shortly after take-off. However, by a lucky coincidence, the two seats near the hole in the fuselage remained empty and the aircraft was still at a relatively low altitude, so the incident was minor and no one was seriously injured.

The US government then opened an investigation and the aviation regulator FAA asked Boeing to submit a plan to improve quality controls. The authority also blocked Boeing’s planned expansion of 737 Max production until further notice.

Source: Stern

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