Boeing has signed a guilty plea agreement with the US Department of Justice, admitting to a conspiracy to defraud the United States in certifying the 737 MAX aircraft. This agreement stems from the tragic crashes involving Lion Air and Ethiopian Airlines in 2018 and 2019, which resulted in 346 deaths.
Court filings reveal that Boeing will plead guilty to a criminal charge filed in 2021 for conspiracy to deceive the Federal Aviation Administration (FAA). The families of the victims have expressed deep disappointment with the agreement and plan to request the court to reject it at an upcoming hearing.
In 2021, Boeing admitted to committing fraud during the certification of the 737 MAX 8, which was involved in the two fatal accidents. Following these crashes, all 737 MAX aircraft were grounded for 20 months globally. Boeing was fined $2.5 billion in exchange for immunity from criminal prosecution, under a deal that included a three-year probationary period expiring this year.
The situation worsened in January when an Alaska Airlines 737 MAX had to make an emergency landing after a fuselage panel detached mid-flight. Subsequent audits and investigations revealed significant non-compliance issues and gaps in Boeing's quality control.
Under the new agreement with the DoJ, Boeing will face a fine and must invest at least $455 million in compliance and safety programs. Compensation for the victims' families will be determined by the court, and an independent supervisor will be appointed for three years to oversee Boeing's compliance.
John Coffee, a professor at Columbia University, noted that while out-of-court settlements can be advantageous by avoiding lengthy trials, they often leave the general public feeling wronged. A criminal conviction could have also jeopardized Boeing's lucrative government and military contracts, which accounted for a third of its revenue in 2023.
- Boeing has been grappling with a series of issues over the past several months, trying to navigate the fallout from the 737 MAX disasters. The agreement with the DoJ is seen as a crucial step in resolving the legal entanglements related to the accidents.
- The proposal from the DoJ includes a fine of $243 million and the appointment of an independent supervisor for three years. Boeing had until Sunday evening to decide whether to accept the agreement or face a potentially lengthy and uncertain criminal trial.
- The families of the victims are adamant about opposing the agreement, demanding a full trial and conviction of Boeing. They argue that the company's culture of prioritizing profits over safety has not changed, and the agreement only reinforces this corporate bias.
