Boeing faces a fraud charge after the 737 Max crashes

• Boeing to answer a fraud charge stemming from two plane crashes.
• Relatives of the deceased are attempting to reopen the settlement.
• Both accidents were caused by flaws in the 737 Max aircraft.

Boeing will appear in court later to answer a fraud charge stemming from two plane crashes that killed 346 people.

Both accidents were caused by flaws in the 737 Max aircraft’s flight control systems, which caused nosedives.

Boeing was found to have failed to disclose system information but avoided a trial by agreeing to pay $2.5 billion (£1.8 billion) in fines and compensation.

Relatives of the deceased are attempting to reopen the settlement.

It means that the company will be charged in court for the first time in relation to the two crashes, and will have to enter a guilty or not guilty plea.

Boeing has previously stated that reopening the agreement with the US Department of Justice (DOJ) would be “unprecedented, unworkable, and unjust.” It refused to comment on the arrest.

Following the crashes in 2019, Boeing 737 Max aircraft were cleared to fly again in the United States in 2020, and in the United Kingdom and the European Union in 2021.

Ethiopian Airlines Flight ET302 crashed minutes after takeoff from Addis Ababa to Nairobi nearly four years ago. In March 2019, it crashed into farmland outside of Ethiopia’s capital, killing 157 people.

The 737 Max, a new aircraft design

An almost identical aircraft operated by the Indonesian carrier Lion Air had crashed into the Java Sea on what should have been a routine flight from Jakarta to Pangkal Pinang just months before.

189 passengers and crew members were killed.

It was later revealed that both accidents were caused by design flaws, specifically the use of MCAS flight control software.

The system was designed to assist pilots who were familiar with previous generations of the 737, preventing them from needing costly additional training to fly the new model.

However, sensor failures caused it to malfunction, and in both cases, it forced the aircraft into a fatal dive that the pilots were unable to avoid.

The US Department of Justice (DoJ) charged Boeing with fraud in January 2021. However, the company avoided going to trial by agreeing to pay $2.5 billion in fines and compensation and promising to tighten up its compliance procedures.

A number of relatives of those who died aboard ET302 were outraged by this settlement, known as a deferred prosecution agreement.

They claimed, and continue to claim, that the transaction was a “sweetheart agreement” that was reached without their knowledge, violated their rights, and allowed the company to avoid full accountability.

The Department of Justice defended its decision, claiming that the settlement was appropriate because it could not prove beyond a reasonable doubt that Boeing’s alleged crimes were directly related to the two crashes.

Investigations in the United States revealed that Boeing had failed to include information about the MCAS system in pilot manuals or training guidance, and had purposefully sought to minimize the system’s impact in communications with the US regulator, the Federal Aviation Administration.

Major milestone

The hearing comes after more than a year of legal wrangling in a Texas court, where the families are trying to reopen the agreement.

Boeing has been directed to send an “appropriate person” to testify in its place. It is unclear who this individual will be.

Meanwhile, relatives of the victims will be allowed to read or have impact statements read to the court on their behalf.

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There is no doubt that the arraignment hearing is a significant milestone for families, including those in the United Kingdom.

Zipporah Kuria’s father, Joseph Wathaika, was killed in the ET302 crash, and she has been a vocal advocate for Boeing’s accountability ever since.

She plans to attend the hearing in Texas and says her statement will be a tribute to an “incredible” man who changed many people’s lives.

“It feels like we’re finally being noticed,” she explained. “It feels like the deaths of our loved ones, of 346 people, have some relevance now.”

‘A cover-up is not justice’

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Mark Pegram, whose son Sam died on the same plane while working for a refugee agency, has been unable to travel to Texas. He did, however, express his gratitude for the hearing.

“A fine and a cover-up is not justice to us,” he said.

“It is critical that a precedent is established to prevent similar loss of innocent lives in the future, and that Boeing understands the horrific impact their misconduct has had on so many families,” he added.

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It is unclear whether the legal action will eventually result in the reopening of the deferred prosecution agreement between Boeing and the DOJ.

Such an action would be extremely unusual. However, it could have far-reaching consequences, according to Robert A Clifford, a Chicago lawyer representing the families in a separate civil action, including action against individuals.

“These families want the maximum penalty imposed on Boeing, and they want any immunity from prosecution that senior Boeing officials received lifted,” he said.

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