Good morning from Skift. It’s Friday, June 28, and here’s what you need to know about the business of travel today.
30.06.2024 - 22:29 / skift.com / United Airlines / Meghna Maharishi
The Justice Department is planning to ask Boeing to plead guilty for deceiving federal regulators about certain aspects of the 737 Max 8, which led to two fatal crashes in 2018 and 2019 , according to Reuters.
According to a report in The Wall Street Journal, Boeing will have until the end of the week to accept the guilty plea, and the DOJ isn’t willing to negotiate the terms of that settlement. If Boeing refuses to plead guilty, then it will have to go to trial, the report said.
The guilty plea agreement would have Boeing agree to hire an outside consultant to monitor its production processes to ensure they comply with safety regulations. The plane maker would also have to pay an additional corporate penalty of $243 million, multiple reports said.
The DOJ initially entered a deferred prosecution agreement with Boeing over charges to defraud the federal government in concealing certain information on the Max 8. But DOJ prosecutors said in May that they believed Boeing had violated the terms of that agreement. Through that agreement, Boeing paid $2.5 billion to avoid criminal prosecution.
It’s unclear if the Alaska Airlines blowout on January 5 may have violated the terms of the previous deferred prosecution agreement.
Boeing did not immediately respond to a request for comment.
A guilty plea would mean that Boeing now risks being accused of committing a felony, which could make it harder for the plane maker to win contract work with the federal government.
The Alaska blowout led the Federal Aviation Administration to ground the Max 9 — a different 737 Max variant from the one involved in the DOJ case — for nearly a month. The agency also halted the production expansion of the 737 Max line, which has led major airlines to face delivery delays. Southwest Airlines has trimmed its outlook due to certification issues with the Max 7 and United Airlines, a big Boeing customer, has been rethinking its fleet plans.
Good morning from Skift. It’s Friday, June 28, and here’s what you need to know about the business of travel today.
Boeing drew fresh criticism from a federal regulator on Thursday over disclosures about the continuing investigation into a harrowing January flight in which one of the company’s 737 Max planes lost a panel, exposing passengers to howling winds at an altitude of about 16,000 feet.
The National Transportation Safety Board (NTSB) has sanctioned Boeing after the plane maker shared “non-public investigative information” with the media.
Boeing says it has achieved significant quality improvements in the production of the 737 Max since one of the planes lost a panel in a harrowing flight in January.
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When traveling, I always try to approach each destination with an open mind and a desire to experience the culture, meet the locals, see the guidebook recommendations, and get off the beaten path whenever possible.
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Alaska Airlines is adding a new route to the Big Easy from one of its West Coast hubs.
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If you’ve been in an airport at any point during the last decade (and we’re guessing you have if you’re reading this), then you’re familiar with Dagne Dover’s ubiquitous Dakota backpack. Made out of squishy, durable neoprene and available in a kaleidoscope of trendy colors ranging from a mauve-y Dune to the chartreuse Piña, the pack has garnered legions of fans not only for its sporty-yet-chic design, but its clever features like a luggage sleeve and an included shoe bag.
Dagne Dover is hoping to make a big splash in the travel world with the introduction of its first-ever luggage collection.