Texas Supreme Court Greenlights SWAPA Lawsuit Against Boeing Over 737 MAX Safety Claims

On June 20, 2025, the Texas Supreme Court ruled that the Southwest Airlines Pilots Association (SWAPA) can proceed with its lawsuit against Boeing Co. regarding the 737 MAX aircraft. The union alleges that Boeing misrepresented the safety of the 737 MAX, leading to significant financial losses for its pilots following the aircraft's grounding in 2019.

This decision allows SWAPA, which represents over 9,700 pilots, to pursue claims in state court. The lawsuit, initially filed in October 2019, contends that Boeing deliberately misled the union about the airworthiness of the 737 MAX. SWAPA asserts that these misrepresentations resulted in financial losses exceeding $100 million for its pilots due to the aircraft's prolonged grounding.

Boeing had argued that the Railway Labor Act preempted the union's claims, suggesting that such disputes should be resolved through arbitration rather than in state court. However, the Texas Supreme Court's decision rejects Boeing's preemption argument, allowing the case to move forward in state court.

The Boeing 737 MAX was grounded worldwide after two catastrophic crashes: Lion Air Flight 610 in October 2018 and Ethiopian Airlines Flight 302 in March 2019, resulting in a total of 346 fatalities. Investigations revealed that the Maneuvering Characteristics Augmentation System (MCAS) played a significant role in both incidents. MCAS, designed to enhance aircraft stability, was found to have activated erroneously due to faulty sensor data, leading to uncontrollable nose-down commands.

The grounding of the 737 MAX led to the cancellation of over 30,000 Southwest Airlines flights, significantly reducing pilots' flight hours and, consequently, their compensation. SWAPA's lawsuit seeks to recover these lost wages and hold Boeing accountable for the alleged misrepresentations.

Captain Jonathan L. Weaks, then-president of SWAPA, emphasized the importance of trust between pilots and aircraft manufacturers, stating, "We have to be able to trust Boeing to truthfully disclose the information we need to safely operate our aircraft."

The Texas Supreme Court's ruling underscores the complexity of legal jurisdiction in cases involving federal labor laws and state court claims. By allowing the lawsuit to proceed in state court, the decision may set a precedent for similar cases where unions seek redress for grievances against third-party manufacturers.

Economically, the outcome of this lawsuit could have significant implications for Boeing, potentially leading to substantial financial liabilities and influencing its relationships with airline operators and pilot unions.

As the case progresses, it will likely draw attention to the responsibilities of aircraft manufacturers in ensuring transparency and safety, as well as the avenues available for labor unions to seek compensation for losses incurred due to alleged corporate misrepresentations.