Earlier this year, we posted a video looking at the potential consequences that Boeing could face as a result of a door explosion on an Alaska Airlines flight. While that video primarily explored the business ramifications of this terrifying incident, last week the public learned about the first legal repercussions against Boeing. According to the Wall Street Journal, the Justice Department (DOJ) is investigating the aviation firm to see if it has complied with the requirements of a settlement made after a pair of plane crashes in 2018 and 2019.

Those fatal events led to Boeing paying a $2.5 billion penalty as it faced scrutiny over its training programs for 737 Max pilots. If the DOJ finds the company in violation of its previous agreement, Boeing could be prosecuted on the charge of defrauding the government. The company might also have to keep the Justice Department apprised of any compliance improvements, this time indefinitely instead of a proposed probationary sentence of three years.

Meanwhile, a Federal Aviation Administration (FAA) audit of Boeing’s production of the Max jet uncovered dozens of issues. Although the FAA could not release details of the problems it found due to the ongoing DOJ investigation, it said the company failed 33 out of 89 audits dealing with quality control. Along with uncovering technical issues, the FAA also discovered lots of problems related to lack of procedure and poor planning. “Sometimes it’s tool management — it sounds kind of pedestrian, but it’s really important in a factory that you have a way of tracking tools effectively so that you have the right tool and you know you didn’t leave it behind,” said FAA administrator Mike Whitaker. “So it’s really plant floor hygiene, if you will, and a variety of issues of that nature.”

Questions:

1. Why did the Justice Department open a criminal investigation against Boeing?
2. Do you think Boeing should face legal repercussions for its poor quality control? Why or why not?

Sources: Mark Walker, “F.A.A. Audit of Boeing’s 737 Max Production Found Dozens of Issues,” The New York Times, March 11, 2024; Andrew Tangel, Dave Michaels and Alison Sider, “Justice Department Opens Probe, Interviews Crew in Alaska Airlines Blowout,” The Wall Street Journal, March 9, 2024.