Boeing (BA) agreed to plead guilty to a conspiracy fraud charge related to the 737 Max crashes. The company also agreed to pay a $243.6 million fine and install a third-party monitor to oversee its compliance. This deal saves Boeing from appearing in a trial as it attempts to rehaul its safety and manufacturing issues, which caused two 737 Max jets to crash in 2018 and 2019, killing 346 people.
“We can confirm that we have reached an agreement in principle on terms of a resolution with the Justice Department, subject to the memorialization and approval of specific terms,” Boeing said in a statement.
The Federal Aviation Administration (FAA) will continue to hold Boeing accountable after reviewing the company’s roadmap to fix its systemic safety and quality-control issues, Administrator Mike Whitaker said Thursday following a three-hour meeting with senior Boeing leaders at FAA headquarters.
In February, Whitaker directed Boeing to develop a comprehensive action plan to set a new standard for safety and how the company does business following the January 5 Alaska Airlines Boeing 737 MAX door plug incident. This roadmap is necessary to reset the safety culture at Boeing, as well as address the findings of the FAA’s special audit and the expert review panel report.
“In the immediate aftermath of January 5, the FAA took unprecedented steps to increase oversight on Boeing. Over the last 90 days, that has meant everything from more safety inspectors in the facilities to halting production expansion.
Today, we reviewed Boeing’s roadmap to set a new safety standard and underscored that they must follow through on corrective actions and effectively transform their safety culture,” Administrator Whitaker said. “On the FAA’s part, we will ensure they do and that their fixes are effective. This does not mark the end of our increased oversight of Boeing and its suppliers, but it sets a new standard of how Boeing does business.”
Source: FAA.gov
Whistleblower John Barnett, who worked for Boeing for over 30 years before retiring in 2017, was providing evidence in a whistleblower lawsuit against the company in the days leading up to his death.
At the time, the police were investigating his death, which the coroner described as an apparent suicide. This occurred just before he was scheduled to resume providing deposition testimony against Boeing, a company he had accused of repeatedly ignoring safety issues.
Before John Barrett resigned, he filed an administrative complaint with the Occupational Safety and Health Administration. They found no reasonable cause to believe Boeing violated whistleblower laws.
In 2021, he filed a lawsuit alleging numerous safety concerns, including stray titanium shavings falling into electrical wiring, defective oxygen tanks, and managers pressuring him to cut corners.
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