636 Boeing Criminal Fine

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Boeing agrees to pay a $2.5 Billion settlement for criminal charges relating to the 737 MAX MCAS system, the FAA issued final rules for supersonic aircraft testing, Ryanair’s Michael O’Leary says the government mismanaged travel restrictions, flight attendant unions are concerned about disruptive air travelers and the FAA responds with a stern warning, initial reports from the Sriwijaya Air flight SJ182 crash, and on a lighter note, the TSA celebrates agency canines in a 2021 calendar.

Aviation News

Boeing Charged with 737 Max Fraud Conspiracy and Agrees to Pay over $2.5 Billion

Boeing Reaches $2.5 Billion Settlement With U.S. Over 737 Max

The Boeing Company has entered into an agreement with the Department of Justice to resolve a criminal charge related to a conspiracy to defraud the Federal Aviation Administration’s Aircraft Evaluation Group (FAA AEG) in connection with the FAA AEG’s evaluation of Boeing’s 737 MAX airplane.

Boeing entered into a deferred prosecution agreement (DPA) in connection with criminal information that charges the company with one count of conspiracy to defraud the United States. Under the terms of the DPA, Boeing will pay a total criminal monetary amount of over $2.5 billion:

  • A criminal monetary penalty of $243.6 million,
  • compensation payments to Boeing’s 737 MAX airline customers of $1.77 billion,
  • and the establishment of a $500 million crash-victim beneficiaries fund to compensate the heirs, relatives, and legal beneficiaries of the 346 passengers who died in the Boeing 737 MAX crashes of Lion Air Flight 610 and Ethiopian Airlines Flight 302.

The tragic crashes of Lion Air Flight 610 and Ethiopian Airlines Flight 302 exposed fraudulent and deceptive conduct by employees of one of the world’s leading commercial airplane manufacturers.

Boeing’s employees chose the path of profit over candor by concealing material information from the FAA concerning the operation of its 737 Max airplane and engaging in an effort to cover up their deception. This resolution holds Boeing accountable for its employees’ criminal misconduct, addresses the financial impact to Boeing’s airline customers, and hopefully provides some measure of compensation to the crash-victims’ families and beneficiaries.

Acting Assistant Attorney General David P. Burns of the Justice Department’s Criminal Division.

Aviation analysts react to Boeing criminal fine

Aviation consultant Scott Hamilton (our guest in episode 398) says the penalty is a “slap on the wrist.” He notes that Airbus paid nearly twice that for a bribery case and there were no fatalities involved there. Hamilton wants to see leadership changes at Boeing.

Charles Herrmann, a lawyer representing more than 50 families of 737 crash victims says the fine is appropriate. Boeing has already suffered financially and doesn’t need to be put out of business. “He blames Boeing’s problems on a change in culture that began when they moved headquarters to Chicago.”

See Jon Ostrower’s The Air Current piece Boeing’s MCAS on the 737 Max may not have been needed at all for many insights.

Individuals who believe they may be an heir, relative, or legal beneficiary of one of the Lion Air Flight 610 or Ethiopian Airlines Flight 302 passengers in this case should contact the Fraud Section’s Victim Witness Unit by email at: Victimassistance.fraud@usdoj.gov or call (888) 549-3945.

FAA issues rules for supersonic jet flight testing in the US

Press Release – FAA Announces Final Rule to Facilitate the Reintroduction of Civil Supersonic Flight

On January 6, 2021, the U.S. Department of Transportation and the Federal Aviation Administration (FAA) issued a final rule (PDF) to facilitate the safe development of civil supersonic aircraft. The government says the rule is intended to streamline the application procedure for special flight authorizations to operate in excess of Mach 1 over land in the United States by

  • Amending the administrative requirements for a special flight authorization,
  • clarifying the information that is needed for submission,
  • and specifying the program office within the FAA that processes the applications.

Outside the special flight authorizations under this final rule, the FAA continues generally to prohibit civil supersonic flight over land in the United States. In place since 1973.

This item came to our attention through an issue of Starburst Weekly, the newsletter of Starburst, a global aerospace accelerator.

Ryanair boss Michael O’Leary says airline’s flights have collapsed from 2,000 a day to 10 but claims summer holidays WILL go ahead

From 2,000 flights per day to “ten or twenty” starting January 21, 2021 is an enormous drop. Covid reductions are catastrophic to the travel industry but O’Leary anticipates that with vaccine availability, by the summer air travel should rebound. He opined that the failure of the Government to end travel restrictions was “beyond him” and it is “one of the great contradictions of the Government’s mismanagement of the Covid travel restrictions.”

Flight attendant union wants pro-Trump rioters barred from flights

FAA chief issues stern warning to travelers after politically-motivated flight disruptions

The president of the Association of Flight Attendants-CWA, Sara Nelson, (our guest in episode 545) said “The mob mentality behavior that took place on several flights to the D.C. area yesterday was unacceptable and threatened the safety and security of every single person onboard.”

On an American Airlines flight to Dulles International Airport, passengers shouted and cursed at each other. The flight attendant had to turn up the cabin lights and ordered passengers to return to their seats. On a Delta Air Lines flight carrying Republican Sen. Mitt Romney of Utah, some passengers started chanting “traitor.” Alaska Airlines banned 14 passengers on a Washington D.C.-Seattle flight.

in a statement, FAA Administrator Steve Dickson said.“The FAA will pursue strong enforcement action against anyone who endangers the safety of a flight, with penalties ranging from monetary fines to jail time.” Passengers can face fines of up to $35,000.

The message here is clear: Do what the crew tells you to do and don’t argue. It doesn’t matter what the issue is, or if you are right and somebody else is wrong. Do what the crew says or you face serious consequences.

The Sriwijaya Air Crash: A Brief Rundown of What We Know

Sriwijaya Air Flight SJ182: Hope for survivors fades as plane wreckage found off Indonesian coast

Indonesian LCC Sriwijaya Air flight SJ182 with 62 people on board (50 PAX, 12 crew) crashed into the water off the Indonesian coast about five minutes into its flight. Four minutes after departing Jakarta, the Boeing 737-500 lost over 10,000 feet of altitude in less than a minute. Bad weather was reported in the area. Some wreckage and human remains have been found. A navy ship detected the emergency signals from the flight data recorder and cockpit voice recorder.

TSA’s 2021 dog calendar stars airport pups. Here’s how to get a free copy

The Transportation Security Administration has more than 400 canine teams at airports around the country. Now you can see photos and learn fun facts about thirteen of the dogs with the 2021 TSA Canine Calendar [PDF]. For each dog, you’ll find the dog’s name, breed, airport, handler, favorite treat and favorite toys.

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