Boeing, one of the world’s leading aircraft manufacturers, has reached a plea agreement with the US Department of Justice (DoJ) in response to a criminal fraud conspiracy charge related to two fatal crashes of its 737 MAX planes. The DoJ official announced that as part of the deal, Boeing will pay a fine of $243.6 million and invest at least $455 million over the course of three years to enhance its safety and compliance programs.
This settlement marks the second time Boeing has been offered a plea bargain by the DoJ regarding the 2018 and 2019 crashes that were attributed to faulty flight control software. These incidents, involving a Lion Air MAX 8 flight in Indonesia and Ethiopian Airlines Flight 302 outside Addis Ababa, resulted in the tragic loss of 346 lives. The families of the victims, who had previously criticized the DoJ for allowing Boeing to evade responsibility through a $2.5 billion settlement in 2021, had demanded a larger fine of nearly $25 billion and criminal proceedings against the company.
The new agreement with the DoJ, which has been described by a lawyer for the families as a “sweetheart deal,” eliminates the need for a trial. In May, the DoJ filed a case accusing Boeing of violating the terms of a deferred prosecution agreement from 2021. This agreement was set to expire in January of this year, but just two days prior, a Boeing 737 MAX 9 operated by Alaska Airlines experienced a mid-air panel blowout, leading to investigations by multiple agencies, including the DoJ. Boeing has denied any wrongdoing, stating that its production practices did not violate the terms of the deferred prosecution agreement.
While the guilty plea and fines outlined in the latest agreement may come as a disappointment to the families of the victims, the terms have yet to be approved by the court. Lawyers representing some of the relatives have stated their intention to urge Texas judge Reed O’Connor, who is presiding over the case, to reject the deal.
This conviction could potentially have consequences for Boeing’s ability to secure government contracts. However, it is important to note that the agreement only addresses the company’s actions leading up to the fatal crashes and does not protect them from any other potential investigations or charges related to the Alaska Airlines incident or other conduct.
In pleading guilty, Boeing has admitted to making false representations to the Federal Aviation Administration (FAA) about a key software feature used on the 737 MAX that allowed for operation at low speeds. This software ultimately saved the company money by requiring less training for pilots. Boeing has maintained that safety is always their top priority and denies any claims that profits were prioritized over safety measures.
