
Families of 737 Crash Victims Urge Rejection of Boeing Deal
Lawyers for 15 families argued Boeing should stand trial for criminal conspiracy as the government had originally planned, to hold the company more accountable for the deaths of 346 people, according to a court filing Wednesday.
'The conspiracy charge against Boeing has been pending now for more than four years,' the families' lawyers said. 'Boeing has admitted all the facts necessary to prove it is guilty. And yet, the government now moves to dismiss the charge.' They added, 'It is difficult to imagine a case more deserving of a public trial than this one.'
The US Justice Department in May asked US District Judge Reed O'Connor in Fort Worth to dismiss the case as part of a proposed settlement reached with Boeing. Under the deal, the planemaker agreed to pay more than $1.1 billion in fees and fines, while taking steps to strengthen internal quality and safety measures.
In return, the company will avoid criminal prosecution.
Prosecutors have argued that the deal 'secures meaningful accountability' and ensures Boeing faces penalties and oversight, an outcome they say would not be guaranteed if they took the case to trial.
A representative of Boeing didn't immediately respond to a request for comment.
In Wednesday's filing, lawyers for family members who oppose the agreement said it would essentially allow the company to 'buy its way out of a criminal conviction.'
The families also claimed language in the deal would obligate the government to not prosecute Boeing even if O'Connor rejects the motion to dismiss the case, which would skirt full judicial review.
'If this court approves the parties' maneuver in this widely publicized case, then this unprecedented approach will likely become the blueprint for all future dismissal motions in federal criminal prosecutions,' they said in the filing.
Relatives of crash victims have spent years fighting for harsher penalties for Boeing following the two fatal crashes of its 737 Max jet in 2018 and 2019. Both crashes were linked to a flawed flight control system on the jets.
The families said the fatal Air India crash earlier this month involving a Boeing 787 Dreamliner shows that 'the stakes for aviation safety are very high.' The cause of the crash remains under investigation.
To be sure, some families support the settlement. But those who want Boeing to go to trial said the company had dangled money 'in front of the families, apparently hoping that it will lead them to back off their efforts to hold Boeing accountable for killing their loved ones. And Boeing's offer appears to have had the desired effect, at least with respect to a few families.'
If O'Connor agrees to a dismissal, it would end the long-running criminal case against Boeing over the crashes. But it would also mark a notable reversal in the proceedings. Just last year, Boeing had agreed to plead guilty to the pending criminal conspiracy charge under a deal that was ultimately rejected by O'Connor.
Under the new settlement Boeing will admit to the underlying accusation of 'conspiracy to obstruct and impede the lawful operation of the Federal Aviation Administration Aircraft Evaluation Group,' but that admission does not constitute a guilty plea.
The government said it could refile criminal charges against the company if Boeing is accused of violating the terms of the two-agreement. Some family members dispute that claim, saying the statute of limitations has already expired.
The agreement requires Boeing to pay a total of $1.1 billion in assorted fines and fees. The total includes:
Boeing would be required to retain a so-called independent compliance consultant to oversee its efforts to improve the effectiveness of its anti-fraud compliance and ethics program. The consultant will be expected to make recommendations for improvements and report their findings directly to the government.
The case is US v. Boeing, 21-cr-005, US District Court, Northern District of Texas (Fort Worth).
--With assistance from Allyson Versprille.
(Updates with outreach to Boeing for comment.)
More stories like this are available on bloomberg.com

Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles


Time of India
44 minutes ago
- Time of India
FAA sees no mechanical issue with 787 Boeing fuel control unit after Air India crash
The head of the Federal Aviation Administration said on Thursday the fatal crash last month of an Air India Boeing 787 jet does not appear to have been caused by a mechanical issue or inadvertent movement of the fuel control unit or switches. "We can say with a high level of confidence is it doesn't appear to be a mechanical issue with the Boeing fuel control unit," Bryan Bedford, the FAA's administrator, told reporters on the sidelines of an air show in Wisconsin. Explore courses from Top Institutes in Please select course: Select a Course Category Product Management Public Policy Project Management Leadership Technology Digital Marketing PGDM Artificial Intelligence Healthcare Degree Management healthcare Others CXO Design Thinking MBA others Finance Cybersecurity Data Analytics Operations Management Data Science Data Science MCA Skills you'll gain: Creating Effective Product Roadmap User Research & Translating it to Product Design Key Metrics via Product Analytics Hand-On Projects Using Cutting Edge Tools Duration: 12 Weeks Indian School of Business ISB Product Management Starts on May 14, 2024 Get Details Skills you'll gain: Product Strategy & Roadmapping User-Centric Product Design Agile Product Development Market Analysis & Product Launch Duration: 24 Weeks Indian School of Business Professional Certificate in Product Management Starts on Jun 26, 2024 Get Details Skills you'll gain: Product Strategy & Competitive Advantage Tactics Product Development Processes & Market Orientations Product Analytics & Data-Driven Decision Making Agile Development, Design Thinking, & Product Leadership Duration: 40 Weeks IIM Kozhikode Professional Certificate in Product Management Starts on Jun 26, 2024 Get Details He said FAA employees had taken the units out, tested them and had inspectors get on aircraft and review them. "We feel very comfortable that this isn't an issue with inadvertent manipulation of fuel control," he said. The probe into the Air India crash, which killed 241 of the 242 people on board and 19 on the ground, is focused on the fuel control switches of the Boeing 787 jetliner. Boeing and Air India did not immediately comment. Live Events The switches control fuel flow to aircraft engines, allowing pilots to start or shut them down on the ground, or manually intervene during in-flight engine failures. Air India said on Tuesday it has completed precautionary inspections of the fuel control switch locking mechanism on all 787 and 737 aircraft, with no issues detected. A preliminary report from India's Aircraft Accident Investigation Bureau earlier this month found the switches had almost simultaneously flipped from "run" to "cutoff" shortly after takeoff, causing the engines to lose power. Reuters reported last week, citing a source, that the cockpit recording on the Air India flight from Ahmedabad to London Gatwick suggested the captain cut fuel to the engines. Earlier this month, the FAA and Boeing privately issued notifications that the fuel switch locks on Boeing planes were safe.


Mint
an hour ago
- Mint
Yuan Rally Queried as Some Analysts Still See Weaker End to Year
(Bloomberg) -- The yuan's rally that took it to an eight-month high this week may prove fleeting as economic headwinds and a potential dollar rebound weigh on further gains, analysts say. The currency's attempt to break out of its recent narrow trading range will be limited by pressure from higher US tariffs, even if a trade deal is reached, and sluggish domestic demand, they said. The dollar meanwhile could be set to recover as traders wind back bets on Federal Reserve interest-rate cuts. 'We still see the Chinese yuan weaker by the end of the year,' said Becky Liu, head of China macro strategy at Standard Chartered Bank in Hong Kong. While the currency's current upward momentum may be sustained for a little longer, the 'fundamental drivers across GDP, exports, and the current-account surplus are likely to fade,' she said. The onshore yuan advanced to as strong as 7.1478 per dollar Thursday, a level last seen in November, before closing at 7.1563. The high for the day saw it briefly break out of the 7.15-to-7.20 trading range that has held since the start of June. The People's Bank of China helped encourage Thursday's rally by setting its daily yuan fixing stronger than 7.14 per dollar for the first time since November. The fixing is a level around which the currency is allowed to move by 2% in either direction. One reason for the recent yuan gains has been the government's so-called 'anti-involution' campaign, which aims to limit oversupply and price competition, and thereby counter deflation. 'I believe the yuan will resume its depreciating trend, as the enthusiasm over anti-involution cools down,' said Ryan Lam, head of research at Shanghai Commercial Bank Ltd. in Hong Kong. At the same time, 'US exceptionalism is alive and well, as least over the next few months. I expect the yuan to re-test 7.20 per dollar,' he said. The yuan's latest gains may also be at least partly driven by official efforts to widen the currency's trading range. The yuan needs to maintain reasonable elasticity to help encourage further internationalization as global investors grow more doubtful about dollar-denominated assets, Miao Yanliang, deputy head of the research department at China International Capital Corp., wrote in an article published Wednesday. Miao's comments echoed those made on Tuesday by Zhang Bin, an official at a government-linked think tank, who called for the authorities to leave room for potential yuan appreciation even as they seek to defend it when it weakens excessively. --With assistance from Qizi Sun and Julia Zhong. More stories like this are available on


Mint
an hour ago
- Mint
Thailand-Cambodia Border Clash Kills Nine Civilians
(Bloomberg) -- A long-simmering border dispute between Thailand and Cambodia blew up Thursday as military operations escalated rapidly — with reports of F-16s, missiles, and artillery strikes across their shared frontier — resulting in the deaths of at least nine civilians. Both Southeast Asian nations accused the other of starting the clashes, which were reported at six locations and follow a build up of tensions since a Cambodian soldier was killed in an exchange of gunfire in May. Thailand said its fighter jets hit two Cambodian army bases near the border on Thursday, while Thai army reported that rockets fired from Cambodia killed several civilians, citing provincial authorities. The fatalities included an 8-year-old child, and 14 others were injured. The number of casualties on the Cambodian side remains unclear. Follow The Big Take daily podcast wherever you listen. Bangkok said in a statement that it's prepared to 'intensify' self-defense measures if Cambodia continues its attacks. Cambodia Prime Minister Hun Manet has asked the UN Security Council to convene an urgent meeting, citing Thailand's 'extremely grave aggressions.' Both the US and China sent advisories to their citizens about the clash, with Beijing saying it was deeply concerned over the attacks. Cambodia lacks air assets to counter Thailand's advanced jets, Bloomberg Intelligence analysts Eric Zhu and George Ferguson wrote in a note, but the country possesses Chinese-made KS-1C air defense systems. 'The dispute is escalating rapidly and could turn into a serious conflict if left unattended,' said Jayant Menon, a senior fellow at the ISEAS-Yusof Ishak Institute in Singapore. 'Although the conflict is unlikely to spread beyond the two countries, it will disrupt trade and people movement, which will negatively affect the regional economy.' Thailand's baht and stocks fell on reports of clashes as they could further dent the outlook for an economy that's already reeling from the threat of a 36% US tariff on its exports. The baht, which earlier rose to its highest since February 2022, declined as much as 0.4% to 32.285 per dollar. Stocks declined 1%. The neighbors have a long history of border tensions, although relations have remained largely stable since the 2011 conflict, which left dozens dead. The last major flare-up centered on the Preah Vihear temple, a longstanding point of contention dating back to French colonial rule. Much of the contemporary border disputes between the neighbors stem from different maps based on the text of the Franco-Siamese treaties of early 1900s that laid out the boundaries between Thailand and Cambodia, which was then part of the French Indochina. Thailand also ordered the evacuation of civilians from at least four border provinces as a precautionary measure, the Interior Ministry said, while its embassy in Phnom Penh advised citizens to leave the country. Cambodia's defense ministry spokesperson Maly Socheata condemned the Thai military action, saying Thailand's use of heavy weapons and deployment of troops 'to encroach on Cambodian territory is a clear violation' of international law. Since the clash in May, both countries have massed troops along the frontier and limited land crossings that serve as vital trade routes. The fighting Thursday came just hours after Thailand expelled Cambodia's ambassador and recalled its own envoy from Phnom Penh in response to a landmine explosion that injured five Thai soldiers on Wednesday. In retaliation, Cambodia further downgraded diplomatic ties by withdrawing its diplomats, and requesting that Thailand do the same, according to Cambodian state media. The dispute has also shaken Thailand's domestic politics. A court has suspended Prime Minister Paetongtarn Shinawatra pending an investigation into allegations of ethical misconduct in her handling of the border issue. Paetongtarn had attempted to defuse tensions in a phone call with former Cambodian leader Hun Sen, but the call was leaked, sparking backlash at home and protests demanding her resignation. She has until July 31 to submit her defense in the court case. After the clash in May, Cambodia called for the International Court of Justice in The Hague to help resolve four disputed land areas. Thailand, however, said it does not recognize the court's jurisdiction in the matter. Following a landmine incident last week in which a Thai soldier lost his leg, Thailand has initiated a diplomatic campaign targeting Cambodia. Bangkok has briefed foreign military attachés and diplomats stationed in the country and is seeking action under the United Nations' Anti-Personnel Mine Ban Convention, while also engaging in bilateral efforts to resolve the dispute. --With assistance from Jon Herskovitz. (Corrects year in 10th paragraph to show there were more than one treaty.) More stories like this are available on