DALLAS- Southwest Airlines (WN) pilots, represented by the Southwest Airlines Pilots Association (SWAPA), can proceed with their lawsuit against Boeing over allegations that the aircraft manufacturer misled them about the safety of the 737 MAX aircraft.
The Texas Supreme Court ruled that the case can move forward in state court, rejecting Boeing’s argument that federal labor law blocks the suit.
The dispute stems from Boeing’s handling of the 737 MAX program and two tragic crashes, Lion Air Flight 610 and Ethiopian Airlines Flight 302, that led to the aircraft’s global grounding and subsequent financial losses for pilots flying out of Dallas Love Field (DAL), Southwest’s primary hub.
Photo: TOMAS DEL CORO | FlickrSouthwest Pilots Boeing 737 MAX Lawsuit
At the heart of the case is whether the Railway Labor Act (RLA), a federal statute governing labor relations in the airline industry, bars SWAPA’s lawsuit in state court.
Boeing argued that the suit would unlawfully require courts to interpret collective bargaining agreements (CBAs), thus falling under federal jurisdiction.
However, the Texas Supreme Court disagreed. Justice Jeff Boyd, writing for the majority, clarified that resolving SWAPA’s claims does not require interpreting any CBA terms.
He cited that the case revolves around factual questions related to Boeing’s conduct and the pilots’ understanding of the aircraft’s safety matters that don’t implicate federal labor law.
According to KeraNews, SWAPA alleges that Boeing knowingly concealed a critical design feature of the 737 MAX, the Maneuvering Characteristics Augmentation System (MCAS), from the Federal Aviation Administration (FAA) and pilots.
This system could automatically lower the aircraft’s nose during certain conditions, a factor later identified as contributing to both crashes.
When Boeing launched the 737 MAX in 2011, SWAPA was still operating under a 2006 CBA. The union claims they were not obligated to fly the aircraft under that agreement.
By 2016, a new CBA included provisions for operating the 737 MAX, but SWAPA asserts that their consent was based on Boeing’s incomplete or misleading disclosures.
SWAPA’s lawsuit claims the union and its members suffered substantial financial losses after the FAA grounded the aircraft.
As the largest operator of the 737 MAX, Southwest Airlines experienced widespread flight cancellations, leading to reduced flying time and income for pilots.
Photo: Cado PhotoNext Steps
Not all justices agreed with the ruling. Justices Jane Bland and Rebeca Huddle dissented, questioning whether SWAPA had the legal standing to file suit on behalf of more than 8,000 pilots. They expressed concern that the case could undermine how labor disputes are handled under the RLA framework.
With the high court’s ruling, the lawsuit returns to a lower trial court in Dallas County, where factual claims-including whether Boeing intentionally misled the union and the extent of pilot compensation losses-will be examined.
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