
On October 29, 2018, a Boeing 737 MAX operated by Lion Air crashed into the Java Sea about 13 minutes after taking off from an airport in Jakarta, Indonesia. All 189 people on board died. Less than five months later, on March 10, 2019, a 737 MAX operated by Ethiopian Airlines crashed shortly after takeoff, killing all 157 passengers and crew.
In publicly filed legal documents, Boeing admitted that the crashes were related to a flaw in the design of the 737 MAX. Specially, the Maneuvering Characteristics Augmentation System (MCAS), which could abruptly point the nose of the plane downward in certain situations. Moreover, Boeing has admitted that its employees "knowingly, and with intent to defraud, conspired to defraud the FAA," by downplaying the role of the MCAS. These employees, according to Boeing, "were acting within the scope of their employment and with the intention, at least in part, to benefit Boeing."
The evidence of the fraud by Boeing was overwhelming. "I haven't been forgiven by god for the covering up I did last night," one Boeing employee wrote in an email. Another said they were using "Jedi mind tricks" to mislead regulators.
The purpose of the fraud was to avoid a requirement that pilots of the 737 MAX receive additional training related to the MCAS. It worked and, as a result, many pilots, including those operating the Lion Air flight, were "unaware of the system’s existence."
Further, the SEC alleged that, after the first crash, "Boeing and [former Boeing CEO Dennis] Muilenburg knew that MCAS posed an ongoing airplane safety issue, but nevertheless assured the public that the 737 MAX airplane was 'as safe as any airplane that has ever flown the skies.'" (The company settled the securities fraud charges for $200 million, and Muilenburg settled for $1 million.)
And yet, Trump's Department of Justice is attempting to allow Boeing to avoid criminal charges for the crashes. Instead, the company will simply be assessed financial penalties and move on. In a status agreement filed in federal court, the Trump administration has reached a deal to allow Boeing to "pay or invest $1.1 billion" in exchange for dismissing the criminal charges. The $1.1 billion figure is inflated because it includes $455 million that Boeing will spend on its own "compliance, safety, and quality programs" and a "credit" for $243.6 million it has already paid in fines. New expenditures outside the company include a $444.5 million fund for victims and about $244 million in fines.
This is the second time the Trump administration has tried to let Boeing off the hook without facing criminal prosecution. On January 7, 2021, in the waning days of the first Trump administration, the company agreed to a Deferred Prosecution Agreement that would allow the company to dodge criminal liability in exchange for even smaller financial penalties. That agreement, however, included a three-year probationary period.
But on January 5, 2024, shortly before the probationary period ended, a Boeing 737 MAX operated by Alaska Airlines had a "near-catastrophic midair blowout of a door-sized fuselage panel" caused by "two distinct manufacturing errors." A subsequent FAA audit "of Boeing’s 737 MAX production line found the process failed 33 of the 89 tests conducted." The audit "found that some technicians working in production did not appear to have the necessary knowledge" and uncovered "the use of liquid dish soap as a temporary lubricant on a door seal."
That incident constituted a violation of the Deferred Prosecution Agreement. In July 2024, the Biden administration secured a plea agreement whereby Boeing admitted "conspiracy to defraud the United States." (The deal did not include guilty pleas for any Boeing executives.) A judge, however, rejected the plea deal last December over concerns about the process of selecting an independent monitor that would oversee the company's safety and compliance efforts.
That pushed the issue back to the Trump administration, which, without explanation, has allowed Boeing to withdraw its guilty plea. The deal is strongly opposed by the families of some of the crash victims. "I am absolutely stunned by the DOJ’s decision to grant Boeing an NPA [Non-Prosecution Agreement] despite all the evidence we have provided showing Boeing’s turpitude and repeated lies before the first crash, between the two crashes, and for more than six years since,” Catherine Berthet, whose daughter died on the Ethiopian Airlines flight, said. "This kind of non-prosecution deal is unprecedented and obviously wrong for the deadliest corporate crime in U.S. history," attorney Paul Cassell, who represents at least 15 victims' families, said. "My families will object and hope to convince the court to reject it."
The DOJ claims that "[f]amily members, and counsel on their behalf, of over 110 crash victims advised the Government that they either support the Agreement specifically, support the Department’s efforts to resolve the case pre-trial more generally, or do not oppose the Agreement." This number represents less than one-third of the victims. The DOJ did not reveal the number of families that have contacted it to oppose the settlement, but says it "supports their right to be heard, and will confer with them and Boeing on a proposed briefing schedule."
The deal must still be approved by a federal judge.
Boeing's political connections with the Trump administration
Boeing has cultivated close political ties with the Trump administration. Like several other companies, Boeing donated $1 million to Trump's inauguration. Boeing has hired Ballard Partners, Attorney General Pam Bondi's former employer, to represent the company. Boeing paid Ballard $480,000 over two years during 2021 and 2022. These payments overlapped with Bondi's time at the firm.
Boeing CEO Kelly Ortberg traveled with Trump to Qatar earlier this month. During the trip, "President Donald Trump and Qatari Emir Tamim bin Hamad Al Thani took part in a signing ceremony" where Qatar Airways agreed to purchase 160 Boeing jets. Ortberg was then featured in a White House press release praising Trump's role. The deal appeared to be more about PR than increased business for Boeing. The company has "a backlog of 5,600 planes, amounting to more than seven years of production." Boeing has a longstanding relationship with Qatar Airways, which already had 130 planes on order before the announcement. Boeing is not struggling with demand but with the ability to safely produce planes.
In March, the Trump administration awarded Boeing a $20 billion contract to build the next generation of fighter jets. A criminal conviction can suspend or revoke a company's ability to receive government contracts.
During his first term, Trump personally negotiated a deal with Muilenburg for Boeing to build two planes to serve as the new Air Force One. That project has been plagued by delays, prompting Trump to accept a luxury Boeing 747-8 as a gift from Qatar to serve as Air Force One in the interim. (It's unclear if that will happen anytime soon, as the plane requires extensive upgrades before transporting the president.) Trump reportedly plans to transfer the Qatari plane to his presidential library, in an apparent violation of the Constitution's Emoluments Clause.
Thank you Judd for being able to find and then share all of these facts about Boeing's "business" operations. I have always intuitively known that Boeing was at grievous fault. I have warned my daughter who flies frequently to oversee operations for her company in another state to avoid flying in a Boeing 737. Thankfully, she has been safe the past few years.
How can this be that "Boeing is not struggling with demand but with the ability to safely produce planes!"? The answer: Trump's disregard for human life where profit is involved.
Amazingly despicable...No nne should fly on any Boeing aircraft until the company is reorganized and and those guilty of risk taking are again put up for prosecution...in a perfect world. We have the technology and the know how but refuse to use it.