Newsletter Thursday, October 3

By David Shepardson

WASHINGTON (Reuters) -Two U.S. senators criticized the Justice Department’s plea deal with Boeing (NYSE:) struck in July and said the government should take action against the planemaker’s executives “responsible for safety failures,” according to a letter seen by Reuters.

Democratic Senators Elizabeth Warren and Richard Blumenthal in a letter dated Wednesday to the Department of Justice said the government had failed to hold Boeing accountable for a series of safety issues in recent years.

“It is past time for DOJ to take action against corporate executives at Boeing who are r esponsible for putting passengers and workers at risk in violation of federal laws and regulations,” the letter said.

Boeing declined to comment. The Justice Department confirmed it had received the letter and declined to comment.

In July, the planemaker finalized an agreement with the DOJ to plead guilty to conspiring to defraud the Federal Aviation Administration and to pay up to $487 million after breaching a 2021 deferred prosecution agreement and to face three years of oversight from an independent monitor.

The Justice Department said Boeing allowed potentially risky work at its factories and did not ensure key airplane recordkeeping was accurate or complete.

“For too long, corporate executives have routinely escaped prosecution for criminal misconduct,” the senators wrote. “This coddling comes at the expense of customer and worker safety, and it must end. We therefore urge you to carefully review the behavior and potential culpability of Boeing’s executives.”

Last week, U.S. District Judge Reed O’Connor said he would hold a hearing on Oct. 11 to consider objections from relatives of some of the 346 people killed in two Boeing 737 MAX crashes.

The senators said “the combination of a relatively small fine coupled with a toothless commitment to improve aircraft safety has proven insufficient to effect real change at the company.”

They added “a number of Boeing aircraft safety failures have occurred since the fatal 737 MAX crashes, raising continued concern about Boeing’s top-down culture that prioritizes production speed over passenger safety.”

In 2021, a former chief technical pilot for Boeing was charged with deceiving the FAA about a key flight control system in the 737 MAX. A jury found him not guilty in 2022.

Last week, FAA Administrator Mike Whitaker told Congress his agency will “expeditiously provide notice, in real time, of any activities that may be criminal so that DOJ can take any action they deem appropriate.”

The Justice Department in August urged O’Connor to accept the deal it says “is a strong and significant resolution that holds Boeing accountable and serves the public interest.”



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