Boeing now faces criminal trial for two 737-Max crashes that killed 346

Boeing Logo

In a criminal case against Boeing that has been going on since two Boeing 737-Max planes crashed in 2018 and 2019, the company now faces a criminal trial scheduled to begin in June over its admitted lies to the FAA about the airplane’s technical flaws that led directly to those crashes.

[T]he criminal charge pending against Boeing arises out of two deadly crashes of Boeing 737 MAX aircraft in 2018 and 2019. A Justice Department investigation uncovered the fact that Boeing had lied to the FAA about the safety of the aircraft—lies that led directly and proximately to the crashes killing 346 passengers and crew. On January 7, 2021, the Justice Department filed a criminal information with a one-count conspiracy charge against Boeing, alleging that “From at least in or around November 2016 through at least in or around December 2018, in the Northern District of Texas and elsewhere, the Defendant, The Boeing Company, knowingly and willfully, and with the intent to defraud, conspired and agreed together with others to defraud the United States by impairing, obstructing, defeating, and interfering with, by dishonest means, the lawful function of a United States government agency.”

In 2021 Boeing admitted to these charges as part of a plea deal with Justice, whereby prosecution would be deferred for three years if Boeing took certain actions to clean up its act. When that deal expired in 2024, Justice determined that Boeing had failed to live up to its agreement. Rather than go to criminal trial however government lawyers instead attempted twice to settle the case by having Boeing pay a big fine, first $243 million and then $455 million. In both cases the deals fell through when lawyers for the victims’ families objected.

After many further delays, the judge in the case has now taken action and set a trial date of June 23, 2025.

The article at the link is written by one of the lawyers for the victims, so it of course has a very decidedly anti-Boeing slant. Nonetheless, the situation for the company is very dire. It has already admitted guilt in the 2021 plea deal. It will be practically impossible for it to avoid a guilty sentence at that trial, resulting in gigantic payouts that could very well bankrupt the company.

I wonder however if instead of charging just the company, a corporation, the Justice Department should also have indicted the specific individuals at Boeing who committed the fraud itself. Those people are the ones responsible, not the entire company. Leaving them out of the case allows them to literally get away with the equivalent of second degree murder for “depraved indifference.”

For example, the CEO of Boeing at the time of those 737-Max crashes, Dennis Muilenburg, was fired in 2019 shortly after the crashes, suggesting the company was aware of his culpability in the situation. And what about the specific managers who filed false reports with the FAA? Do they all get off scot free?

As it stands now, the case is likely to destroy Boeing itself, harming thousands of innocent employees who had nothing to do with this fraud or the 737-Max. It will also do great harm to Boeing’s many other contracts with the government, NASA, and other private airline companies.

Then again, maybe it is time for this company to go. It surely hasn’t demonstrated in the past decade any ability to build anything reliably.

$243.6 million plea deal allows Boeing to avoid a criminal trial

The Justice Department and Boeing have made a plea deal so that the company can avoid a criminal trial for breaking its previous plea deal over 737-Max plane crashes that killed 346 people.

Under the agreement, Boeing will plead guilty to a criminal fraud charge stemming from the fatal crashes in Indonesia in October 2018 and in Ethiopia less than five months later that killed a combined 346 people.

Boeing must also pay the hefty fine [$243.6 million], invest at least $455 million in compliance and safety programs, and have an independent monitor oversee Boeing’s safety and quality procedures for three years

The company had made similar deal in 2021 with Justice when it became clear it had deceived FAA regulators about the software on new 737-Max planes that caused these crashes. This new deal is because the company apparently violated that 2021 deal, and allows it to avoid a criminal trial.

A judge still has to approve this new plea deal. Many families of the deceased oppose it, demanding instead that company managers be put on trial. Even if the judge accepts it, Boeing will still be liable for other more recent incidents.

All in all, Boeing comes off as a morally corrupt and incompetent company that was willing to cut corners, lie about it, thus allow more planes to crash because of its actions.

No wonder everyone wants to blame Boeing for every single incident that has recently occurred on various commercial jets, even though in many cases the blame resides more with the maintenance departments of the airlines that had purchased the planes. And no wonder no one believes the claim that the astronauts that flew up to ISS in June are not “stuck” there. They probably aren’t, but why believe anyone from such a compny.

Boeing hires former SpaceX software engineer

Capitalism in space: Boeing has hired a former SpaceX software engineer to head software development for the company.

Boeing on Friday announced it hired Jinnah Hosein as vice president of software engineering, a new role at the aerospace giant. The job will lead a centralized organization of engineers developing software across Boeing’s portfolio of products. Hosein will report to Greg Hyslop, Boeing chief engineer and senior vice president of engineering, test and technology.

…Hosein’s resume reads like a defense industry wish list of Silicon Valley stops. He worked as Google’s director of software engineering for cloud networking, helped design Tesla’s autopilot software and most recently worked as software lead for self-driving startup Aurora.

But it’s his experiences at SpaceX — where he was key to software development for the Falcon, Falcon Heavy, Dragon and Crew Dragon vehicles — that Boeing may look to draw from the most. Boeing and SpaceX have fiercely competed over NASA’s manned space programs, and SpaceX is a competitor for military space launches against the United Launch Alliance, which is co-owned by Boeing and Lockheed Martin.

Since software was the main issue that grounded Boeing’s 737-Max airplane as well as caused the serious problems on the first unmanned demo flight of the company’s Starliner capsule, this hire appears to be aimed at fixing these software issues. In both cases the management philosophy behind developing and testing software was very flawed, leaving the product saddled with software that either didn’t work properly or was not tested properly in development.

I imagine Boeing’s top management is hoping Hosein can bring to Boeing some of the agile, focused, and very successful management style found at SpaceX.

Boeing looking to borrow up to $10 billion because of 737-Max problems

Boeing apparently is in discussions with several banks in an effort to secure a $10 billion loan to help it deal with the costs related to the suspension of production of the 737-Max airplane after two fatal crashes.

Boeing is in talks with banks to secure a loan of $10 billion or more, according to people familiar with the matter, as the company faces rising costs stemming from two fatal crashes of its 737 Max planes. The company has secured at least $6 billion from banks so far, the people said, and is talking to other lenders for more contributions. The total amount could rise if there is additional demand from banks, one person familiar with the matter said.

Liquidity isn’t an immediate concern, analysts have said, but the new debt shows Boeing is shoring up its finances amid the cash-sapping fallout of the two crashes — one in Indonesia in October 2018 and another in Ethiopia in March last year — that killed all 346 people aboard the two flights.

The amount Boeing is seeking to borrow is more than what some analysts were expecting. For example, Jefferies earlier this month forecast Boeing would issue $5 billion in debt this quarter.

I must emphasize that this story relies on anonymous sources, and is reported by CNBC, a division of NBC, one of today’s least reliable news sources.

More trustworthy information should become available on January 29, when Boeing makes its next earnings report.

Boeing fires CEO

Boeing today fired its CEO Dennis Muilenburg, citing the need to “restore confidence in the company.”

The company has had a very bad year, with the grounding of its 737-Max airplane, the cost overruns and delays in its NASA Space Launch System (SLS) rocket, and the failure of its Starliner manned capsule to dock with ISS this past weekend.

Whether this change will accomplish anything is hard to say. The problems above appear very deeply embedded within the company’s culture, and might require the kind of wholesale changes that big bloated corporations like Boeing are generally loath to impose.