Two and a half years after it first announced plans to add premium economy, KLM has finished installing the new cabins on a large portion of its long-haul fleet, the Dutch carrier said this week.
Boeing's plea deal in 737 Max crashes suit rejected by federal judge
05.12.2024 - 19:07 / insider.com / Dennis Muilenburg / Dave Calhoun / Justice Department
A federal judge on Thursday rejected a plea deal between Boeing and US prosecutors,citing concerns with the role diversity, equity, and inclusion will play in selecting an independent monitor.
In his decision, Judge Reed O'Connor of the US District Court, Northern District of Texas, expressed doubts about Boeing's and the US Government's ability to select the monitor solely based on capability without consideration of race. The judge noted both groups' strong focus on DEI in their operating policies.
"In a case of this magnitude, it is in the utmost interest of justice that the public is confident this monitor selection is done based solely on competency," the judge said in his decision. "The parties' DEI efforts only serve to undermine this confidence in the Government and Boeing's ethics and anti-fraud efforts."
The case involves two Boeing 737 Max crashes that killed 346 people, the first with Indonesia's Lion Air in October 2018 and the second with Ethiopian Airlines in March 2019. Faulty software was found to be the culprit in both crashes.
The victims' families have opposed the plea agreement due to their displeasure with the process for selecting an independent anti-fraud monitor and the fact that Boeing's compliance with the monitor's recommendations is not a required condition of its probation, court documents noted.
"This is an excellent decision by Judge O'Connor and an important victory for the victims' families," Erin Applebaum, Partner at Kreindler & Kreindler LLP, which represents 34 families who lost loved ones on the Ethiopian Airlines flight, told Business Insider.
"We anticipate a significant renegotiation of the plea deal that incorporates terms truly commensurate with the gravity of Boeing's crimes," she added. "It's time for the DOJ to end its lenient treatment of Boeing and demand real accountability."
A spokesperson for O'Connor nor Boeing immediately responded to a request for comment from Business Insider.
In July, Boeing agreed to plead guilty to fraud, pay a $243.6 million fine, and allow an independent monitor to oversee safety and quality control at its factories.
However, regulators said Boeing violated that settlement after the January Alaska Airlines door plug blowout. The deal was set to expire two days after the Alaska incident.
In May, the Justice Department said Boeing had failed to "design, implement, and enforce a compliance and ethics program."
This came after Boeing reached a $2.5 billion settlement with the Department of Justice and families of the victims in January 2021 to settle charges of fraud conspiracy related to the fatal crashes.
Boeing's former CEO, Dennis Muilenburg, was fired in December 2019 and was replaced by Dave Calhoun. Calhoun later stepped
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