US says Boeing breached 2021 agreement

WASHINGTON — The US Justice Department said on Tuesday that Boeing had breached its obligations in a 2021 agreement that shielded the plane maker from criminal prosecution over fatal 737 MAX crashes in 2018 and 2019 that killed 346 people.

The Justice Department said in a court filing in Texas that the US company had failed to "design, implement, and enforce a compliance and ethics program to prevent and detect violations of the US fraud laws throughout its operations."

Justice Department officials made the finding in the wake of a separate January in-flight blowout that exposed continuing safety and quality issues at Boeing. A panel blew off a new Boeing 737 MAX 9 jet during a Jan 5 Alaska Airlines flight, just two days before the 2021 agreement shielding Boeing from prosecution over the previous crashes expired.

The determination exposes Boeing to a potential criminal prosecution over the 2018 and 2019 crashes that could carry steep financial penalties and tougher oversight, deepening a corporate crisis and reputational damage stemming from the January blowout.

While Boeing is now subject to prosecution as a result of breaching the 2021 agreement, the Justice Department said in the court filing, that officials will consider steps the plane maker has taken to address and remediate violation of the pact before determining how to proceed.

The Justice Department directed Boeing to respond by June 13 and intends to decide whether to prosecute Boeing by July 7.

Boeing confirmed it had received word from the Justice Department of its determination that the company breached the 2021 deal.

Agencies via Xinhua