Important Questions for Boeing’s CEO at Tomorrow’s Senate Commerce Committee Hearing
Tomorrow, Senator Ted Cruz has scheduled a hearing entitled “Safety First: Restoring Boeing’s Status as a Great American Manufacturer.” Boeing CEO Kelly Ortberg is scheduled to testify about steps Boeing has taken to address safety issues that have arisen in recent years. Foremost among these issues is Boeing’s conspiracy to defraud the FAA about the safety of its 737 MAX aircraft—a proven criminal conspiracy which directly and proximately led to two crashes of Boeing 737 MAX aircraft.
Like Senator Cruz, I truly hope that Boeing will, in its next chapter, be restored to its status as a great American manufacturer. But moving onto that next chapter is not possible until Boeing concludes its current chapter. Over the next few weeks, Boeing’s leadership will decide how it will conclude the criminal case that has been pending against it for more than four years. Boeing’s decision will shed considerable light on whether it truly committed to again becoming a great and responsible manufacturer.
As is well known, Boeing defrauded the FAA about the safety of its 737 MAX aircraft. In January 2021, Boeing entered into a deferred prosecution agreement (DPA) with the Justice Department, in which it admitted the crime. In exchange for the Government’s agreement to defer prosecution, Boeing promised to address safety issues connected with the 737 MAX and, more broadly, its internal safety procedures.
I am representing (on a pro bono basis) some of the two crashes victims’ family members. As I have blogged about before (see here, here, here, and here), the DPA was concluded in violation of the Crime Victims’ Rights Act because the parties (the Justice Department and Boeing) kept that agreement secret from the 346 families who lost loved ones in the two crashes. Indeed, Senator Cruz wrote a powerful amicus brief supporting the families’ position that they represented “crime victims” of Boeing’s conspiracy. Senator Cruz explained that “Boeing engaged in criminal conduct that defrauded government regulators and left hundreds of people dead in preventable plane crashes.… This is not a mine-run fraud case where some low-level employee lied or committed a technical violation; it is a long-running conspiracy that directly led to some of the worst air travel disasters of the 21st century.”
During the DPA’s three-year term, Boeing failed to deliver on its promises to improve safety processes. In May, 2024, Boeing’s failures led the Justice Department to declare that Boeing had breached its DPA obligations, setting up the issue of how to resolve the pending conspiracy charge. Last summer, Boeing agreed to plead guilty. But after the victims’ families objected to the proposed “sweetheart” deal, Judge O’Connor rejected the proposed plea agreement for various reasons. Judge O’Connor then directed the parties to explain how they intended to proceed. Whether Boeing intends to plead guilty to the charge, go to trial, or try to do something else is currently pending.
During the last week, news reports have suggested that Boeing is now lobbying the Justice Department to cut some kind of new deal. According to the
Article from Reason.com
The Reason Magazine website is a go-to destination for libertarians seeking cogent analysis, investigative reporting, and thought-provoking commentary. Championing the principles of individual freedom, limited government, and free markets, the site offers a diverse range of articles, videos, and podcasts that challenge conventional wisdom and advocate for libertarian solutions. Whether you’re interested in politics, culture, or technology, Reason provides a unique lens that prioritizes liberty and rational discourse. It’s an essential resource for those who value critical thinking and nuanced debate in the pursuit of a freer society.
