Quantcast

Boeing's plea deal raises questions about defense contracts

Southwest's layoffs dent its worker-first culture
Abu Dhabi's long-haul carrier Etihad Airways sees record $476 million profit in 2024
Jet2 warns of profits squeeze from rising costs and late bookings
Southwest bends further to activist shareholder Elliott's demands
Downgraded on a flight? Take these simple but important steps to get your money back
Hong Kong Airlines launches daily Sydney flights
Airline to launch new bunk beds in economy on long-haul flights next year
How Airline Employees Are Coping After Deadly Washington Crash
Major airline reverses in-flight menu change amid outcry
British Airways frequent flyer scheme changes: everything you need to know
Airline introduces world-first hand luggage ban on popular travel gadget
Air Canada Delays Boeing 767 Reentry
Flight Centre tips ‘price war’ as first direct Melbourne to LA Delta flights go on sale
FAA reverses course on meeting prohibition, blaming rogue employee
British Airways tweaks frequent flyer scheme after backlash
Delta flight from New York to Florida diverted to North Carolina due to ‘odor in the cabin’
EASA Certifies Safran’s First Electric Motor
US court blocks Biden administration's airline fee disclosure rule
JetBlue Issues Dim Outlook But Execs Remain Confident in Turnaround Plan
Delta to Resume Tel Aviv Flights April 1
Boeing CEO Ortberg outlines 2025 priorities after heavy losses
Storm Eowyn: Thousands of trains, flights and ferries cancelled as 100mph wind batters UK
Indian carrier long haul: IndiGo returns to profitability, plans long haul flights
These Frequent Fliers Are Done With Loyalty Programs
JetBlue accepting Venmo as payment method for flights purchased through mobile app
United Airlines stock rallies on results, as growing demand wasn’t just about premium seats
Delta Adds Another Alaska Route
Southwest to Reduce Pilot Head Count at Several Bases
Dublin Airport savings boost for holidaymakers – but passengers need to be quick
American Halts CRJ-200 Operations
Boeing's plea deal raises questions about defense contracts
Policy

Boeing's controversial plea deal to settle its criminal charges over the 2018 and 2019 737 MAX crashes could theoretically impact its numerous lucrative military contracts, but no one seems to seriously think it will. The U.S. military is not supposed to engage with companies that have criminal convictions, but the government can waive this restriction.

"DOD will assess the company’s remediation plans and agreement with the Department of Justice to make a determination as to what steps are necessary and appropriate to protect the federal government," Air Force spokesman Maj. Gen Patrick Ryder told reporters. Canada is also reviewing its deal to buy P-8 Poseidons, but the process is continuing.

Boeing agreed to pay a $243.6 million fine and invest at least $455 million in "compliance and safety programs" after pleading guilty to conspiracy to defraud the U.S. To avoid criminal proceedings over the certification process for the MAX in 2021, Boeing promised to change its ways, but prosecutors alleged that the company ignored the terms of that deal. These accusations arose when a door plug blew off an Alaska Airlines MAX last January, just a few days before the expiry of the three-year probation period attached to the first plea deal agreement.

Get the Newsletter
Sign-up to receive weekly round up of news from Sky Industry News
By submitting, you agree to our Privacy Policy and Terms of Service. By providing your phone number you are opting in and consenting to receive recurring SMS/MMS messages, including automated texts, to that number from our short code. Msg & data rates may apply. Reply HELP for help, STOP to end. SMS opt-in will not be sold, rented, or shared.

The first plea deal came after Boeing downplayed the impact of the newly installed Maneuvering Characteristics Augmentation System (MCAS) on the aircraft’s flight controls to prevent needing a separate type certificate for the model. MCAS was found to be a factor in crashes involving an Ethiopian Airlines MAX in 2019 and a Lion Air plane in 2018, resulting in 346 fatalities.

The families of victims from these crashes launched a strong attack against this latest agreement, calling it a "sweetheart deal" that Boeing will shrug off financially. They were advocating for a $24 billion fine against Boeing and stated that Sunday's arrangement disrespected hundreds of victims and thousands of loved ones they left behind. Catherine Berthet, whose daughter Camille died in the Ethiopian crash, said that this plea deal shows "weakness and manifest contempt for the victims’ families and public interest."

Organizations Included in this History
More News

EVA Air has announced the return of the 2025 EVA Marathon in Taipei, with registration now open for race distances ranging from 3K to 42K.

May 12, 2025

Airlines for America announced its support for Transportation Secretary Sean Duffy's commitment to modernizing the national air traffic control system and maintaining airspace safety.

May 12, 2025

Ethiopian Airlines has announced a 15% discount on flights to Singapore and Kuala Lumpur from select destinations.

May 12, 2025

Cathay Pacific has announced the reopening of its redesigned lounge, The Bridge, at Hong Kong International Airport.

May 12, 2025

Emirates has announced the launch of a new daily direct flight between Dubai and Hangzhou, marking its fifth gateway into mainland China.

May 12, 2025

Aeroméxico has announced the launch of a social media trivia contest, offering participants an opportunity to win prizes associated with the Tecate Emblema Festival.

May 12, 2025