Boeing and the U.S. Justice Department have 30 days to come up with a new way to police the scandal-plagued aerospace group after a federal judge voided their plea agreement.
The original deal, struck in the aftermath of two 737 Max disasters that resulted from criminal negligence, requires an independent monitor to oversee Boeing’s processes.
Judge Reed O’Connor of the Northern District of Texas took issue with the selection criteria, which include considering diversity and inclusion.
The court argued that appointing a monitor for any reason apart from suitable competency was incompatible with the overarching goal of restoring public faith, particularly for a case of such magnitude.
“The plea agreement requires the parties to consider race when hiring the independent monitor,” the judge ruled. “Additionally, the plea agreement marginalizes the Court in the selection and monitoring of the independent monitor. These provisions are inappropriate and against the public interest.”
Fortune reached out to Boeing and the Justice Department for comment.
George W. Bush appointed O’Connor to his seat, but his appointment is not entirely without controversy.
Much like the rulings of Kathaleen McCormick, head of the Delaware chancery court and appointed by a Joe Biden ally, those of O’Connor have been criticized as overly political in nature.
Elon Musk has filed lawsuits in O’Connor’s district, even when there is no obvious reason, in hopes of a favorable ruling.
Concealed from authorities defective software
The 737 Max disaster has been blamed on Boeing cutting corners on safety.
When Boeing faced greater competition for its narrow-body workhorse from the introduction of rival Airbus’s A320neo, it installed new, larger, more powerful, and fuel-efficient turbojet engines in the 737, dubbing it Max.
However, the engines needed to be positioned differently on the wing to ensure ground clearance, fundamentally altering the aircraft’s aerodynamics.
Knowing customers would not be tempted to opt for a Boeing over an Airbus if it meant an airline had to train and recertify all of its 737 pilots, Boeing devised a workaround.
A simple software assist program called Maneuvering Characteristics Augmentation System, or MCAS, would effectively make it fly like its predecessor.
For the 346 passengers and crew aboard Lion Air Flight 610 and Ethiopian Airlines Flight 302, this decision proved a death sentence.
Boeing subsequently agreed that it had committed fraud in relation to MCAS by failing to raise concerns found by employees with the Federal Aviation Administration.
“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,” the Justice Department said in a statement after reaching an agreement with the company.
Boeing’s safety scandals continued earlier this year when a door plug blew off the fuselage of an Alaska Airlines plane in mid-flight.
