Boeing Ditches Deal with USgov, Aims for Trump Justice Department's "Soft Touch"
Boeing appears to be planning to scrap its deal with the U.S. government.
In a shocking move, aircraft giant Boeing could be dumping the settlement it reached with the previous US administration over the tragic 737 Max crashes. According to anonymous sources and The Wall Street Journal's latest report, Boeing is hoping for a more lenient stance from the Justice Department under President Donald Trump. Neither Boeing nor the Justice Department has commented on the matter thus far.
The report suggests that Trump's Department of Justice might be more inclined to modify the agreement, potentially benefiting Boeing. This agreement, struck in July 2024 under the leadership of the Democrats and Joe Biden, saw Boeing confessing to conspiring to deceive the US government in the certification of 737 Max aircraft. Instead of facing a criminal trial, the company was poised to avoid such consequences.
However, the agreement is yet to receive final approval from a judge. In December 2024, the Texas federal judge rejected the deal, requiring both parties to renegotiate. With several delays, both sides must now inform the judge of their next steps by April 11.
A New Era for Boeing?
If the penalties for Boeing were to be reduced or rescinded, it would be a remarkable demonstration of the Trump administration's softer approach towards corporate crimes.
The 737 Max planes were grounded worldwide for 20 months following crashes in Indonesia in October 2018 and Ethiopia in March 2019. With a death toll of 346, Boeing acknowledged issues with a stabilization software on the 737 Max in April 2019. Subsequently, the company revised the software as a result of the disasters. The crashes triggered a protracted legal battle between Boeing and US authorities.
Sources: ntv.de, lme/AFP
- Boeing
- Boeing 737 Max
- Plane Crash
- Aircraft
- Donald Trump
- US Department of Justice
- Pam Bondi
Behind the Scenes
Though there are no recent updates suggesting the Trump administration will alter the settlement with Boeing regarding the 737 Max crashes, there has been considerable development related to Boeing's plea deal with the Department of Justice (DoJ).
- Brief History: The 737 Max crashes in October 2018 and March 2019 resulted in the deaths of 346 individuals. In July 2024, Boeing agreed to a plea deal involving a guilty plea for conspiring to defraud the Federal Aviation Administration (FAA) by deceiving regulators about the need for additional pilot training for the 737 Max[2][3].
- Rejection of the Plea Deal: In December 2024, a federal judge in Texas rejected the plea deal. The judge raised concerns about the inclusion of diversity, equity, and inclusion (DEI) policies in the agreement, fearing they could influence the selection of a monitor to oversee Boeing's compliance. The judge has set a trial date for June 2025[3].
- Current Events: Boeing is lobbying for a more lenient treatment, but recent actions by the judge indicate that the case is moving towards trial[2][3].
- Trump Administration Involvement: While there are speculations about Boeing seeking leniency under the current administration, there are no clear signs of significant modifications to the settlement on the horizon. The complex nature of the legal and political atmosphere makes this a fluid situation[2][3].
In essence, while negotiations and discussions between Boeing and the Justice Department are ongoing, there are no definitive moves by the Trump administration to alter the settlement terms for Boeing related to the 737 Max crashes. The case is moving towards a trial scheduled for June 2025.
- Boeing, amidst controversy related to the 737 Max crashes, is hoping for a more lenient stance from the US Department of Justice under President Donald Trump, as suggested by recent reports.
- The Department of Justice, under the Trump administration, might be more inclined to modify the previous agreement with Boeing, which confessed to conspiring to deceive the Federal Aviation Administration (FAA) regarding the need for additional pilot training for the 737 Max aircraft.
- If the penalties for Boeing were to be reduced or rescinded, it would mark a significant shift in the Trump administration's approach towards corporate crimes related to aviation safety.
