This was the news Boeing did NOT want. Boeing, once a titan of American engineering, has faced relentless turbulence in recent years, with its reputation battered by safety scandals, production delays, and now the tragic crash of Air India Flight 171.
The U.S. Department of Justice’s (DOJ) recent decision to shield Boeing from prosecution over the 737 MAX crashes, combined with ongoing delivery struggles and the fallout from the Ahmedabad disaster, has deepened the crisis for the aerospace giant and its airline customers.
In May 2025, the DOJ announced a non-prosecution agreement with Boeing, allowing the company to avoid a criminal trial over the 2018 Lion Air and 2019 Ethiopian Airlines 737 MAX crashes that killed 346 people.
The deal, which includes Boeing admitting to conspiring to obstruct the Federal Aviation Administration (FAA) and paying $1.1 billion—comprising $444.5m for victims’ families, $455m for safety improvements, and a $487.2m fine (half paid in 2021)—has sparked outrage among victims’ families. Lawyers like Paul Cassell, representing families, called it “morally repugnant,” arguing it lets Boeing “sidestep true criminal accountability.”
The decision, finalized under the incoming Trump administration after a federal judge rejected a prior guilty plea due to diversity provisions in selecting an independent monitor, has been criticized as prioritizing corporate interests over justice.
Families, such as Catherine Berthet, whose daughter died in the Ethiopian crash, expressed dismay, accusing the DOJ of blind faith in Boeing.
Boeing’s production woes compound its challenges. The company has struggled to ramp up deliveries, particularly of the 737 MAX, after a January 2024 Alaska Airlines incident involving a door plug blowout grounded 171 MAX 9 aircraft.
In 2024, Boeing delivered an average of 28.5 737 MAX planes per month, down from 42 before the groundings, with 787 Dreamliner production at about five per month, aiming for 10 by 2026. Delays, driven by FAA audits revealing quality control lapses and whistleblower allegations of substandard parts, have frustrated airlines like Air India, which operates 34 787s and awaits 20 more. These delays force carriers to rely on aging fleets, increasing operational costs and disrupting schedules.
The crash of Air India Flight 171, a Boeing 787-8 Dreamliner, on June 12, 2025, in Ahmedabad has intensified scrutiny. The flight, carrying 242 people, crashed 30 seconds after takeoff, killing 241 onboard and at least 30 on the ground.
The first fatal incident involving a 787, it shattered the model’s exemplary safety record. Early investigations point to extended landing gear and retracted flaps, with black box data still under analysis by India’s Aircraft Accident Investigation Bureau, aided by UK and U.S. teams.
While no definitive fault has been attributed to Boeing, whistleblower claims from former engineer Sam Salehpour about ignored safety concerns loom large, though Boeing denies these allegations. Boeing’s stock fell 5pc in the aftermath of the crash, reflecting investor fears as new CEO Kelly Ortberg struggles to rebuild trust.
Airlines, particularly Air India, face significant fallout. Air India, under Tata Group ownership since 2022, has been modernizing its fleet, with orders for 100 Airbus and 470 Boeing aircraft, including 787s. The crash disrupts these plans, raising questions about fleet reliability and safety protocols.
Air India’s response, including ₹10m per victim in compensation, aims to mitigate reputational damage, but the crash could erode passenger confidence, especially in India’s booming aviation market, which carried 161.3m passengers in 2024. Other airlines, like United and Alaska, already wary after 737 MAX issues, may hesitate to expand Boeing orders, with some Chinese carriers reportedly rejecting deliveries.
For Boeing, the crash amplifies existing problems. The FAA’s revocation of Boeing’s self-certification rights post-MAX crashes and ongoing investigations into quality control signal tighter oversight.
Whistleblower deaths, including John Barnett’s suicide in March 2024, have revived perceptions of a toxic corporate culture. The DOJ’s leniency, criticized as a “slap on the wrist,” risks emboldening complacency. Boeing’s agreement to invest $455m in safety programs is a step, but restoring faith requires transparency and accountability—qualities critics argue have been lacking since the 737 MAX saga began.
India’s aviation sector, poised for growth with 1,300 aircraft on order and plans for 400 airports by 2047, now faces a reckoning. The IATA summit in Delhi, just days before the crash, celebrated India’s rise as a global aviation hub.
Flight 171’s tragedy underscores the delicate balance between ambition and safety. For Boeing, the path forward demands rigorous reforms to ensure such a disaster never recurs, lest the skies grow darker for both.
