Boeing To Plead Guilty To Criminal Fraud Charge After 737 MAX Crashes
Boeing has agreed to plead guilty to a criminal fraud conspiracy charge and pay a $243.6 million fine to resolve a U.S. Justice Department investigation into two fatal 737 MAX crashes. The crashes, which occurred over five months between 2018 and 2019 in Indonesia and Ethiopia, resulted in 346 deaths.
The first crash involved a Boeing 737 Max Plane operated by Indonesia’s Lion Air in October 2018. The plane crashed shortly after take-off, killing all of the 189 people on board. The second crash in early 2019 involved an Ethiopian Airlines flight, where the crash killed all 157 people on board. These deaths included both passengers and crew.
Boeing's plea deal will allow it to avoid a trial and potentially greater public scrutiny if the deal is approved by a judge. However, the company will now be branded a felon, potentially complicating its ability to secure lucrative government contracts, which account for a significant portion of its revenue.
The plea deal does not shield Boeing from other potential investigations or charges related to incidents beyond the fatal crashes.
Plea deal follows violation of 2021 settlement
Boeing's decision to plead guilty comes after the Justice Department found the company had violated a 2021 settlement related to the crashes. The guilty plea deal requires Boeing to spend at least $455 million over the next three years to enhance safety and compliance programs. An independent monitor will oversee Boeing's compliance during this period, and the company's board will meet with the families of the crash victims.
Boeing's spokesperson confirmed the agreement in principle with the Justice Department, stating that they are working to finalise the terms. The plea deal is seen as a step towards resolving the company's legal challenges and moving forward under new leadership, as Boeing prepares for a new CEO and aims to acquire Spirit AeroSystems.
Families of victims paint deal as “sweetheart deal”
Families of the victims are not happy with the new of the guilty plea, and have criticised the deal as a "sweetheart deal," calling for a trial instead. Lawyer Paul Cassell, representing some of the victims' relatives, said, "This sweetheart deal fails to recognize that because of Boeing’s conspiracy, 346 people died." He urged the judge to reject the “inappropriate” plea and set the matter for a public trial.
The Justice Department's investigation has added to Boeing's ongoing crisis, which includes a recent Alaska Airlines incident involving a 737 MAX 9 door panel blowout.
