The US Department of Justice and Boeing have come to an agreement where Boeing will plead guilty to a charge of conspiring to defraud the US government. This comes in the wake of two tragic crashes in 2018 and 2019 that claimed the lives of 346 people. The New York Times reported on this development.
Back in May, the DOJ made public that Boeing had violated a deal reached in 2021. This deal required Boeing to pay fines, compensation, and make significant safety improvements. Not long after this announcement, an Alaska Airlines flight experienced a frightening incident where a cabin panel detached while the plane was flying at 16,000 feet. Following this, the DOJ presented Boeing with a plea deal on June 30, giving them a week to accept it or face a trial.
Under the terms of the new agreement, Boeing will be required to pay a hefty fine of $487.2 million, with the possibility that some of this sum could be offset by payments from the original deal. Additionally, Boeing must invest at least $455 million over the next three years in safety measures and compliance. The DOJ will appoint a third-party monitor to oversee Boeing’s adherence to these requirements.
Despite this new agreement, critics argue that it falls short of providing justice for the victims of the crashes. Paul Cassell, a lawyer representing some of the affected families, expressed disappointment in the deal. He stated that the agreement fails to acknowledge the loss of 346 lives caused by Boeing’s actions. Cassell criticized the arrangement as a way for Boeing and the DOJ to downplay the severity of the situation.
In 2021, Boeing had agreed to compensate its customers with $1.77 billion after the 737 Max planes were grounded for 18 months due to safety concerns. As part of this deal, Boeing paid $243.6 million in fines and contributed $500 million to a fund for the families of the crash victims in Indonesia and Ethiopia.
The Federal Aviation Administration’s Aircraft Evaluation Group determined that the Maneuvering Characteristics Augmentation System (MCAS) played a role in both crashes. It was revealed that two Boeing 737 Max flight technical pilots had misled the FAA AEG two years prior to the first crash by withholding crucial information about changes to the MCAS.
If approved by the court, this new agreement will mark Boeing’s first felony conviction in many years. The company will have to navigate significant financial penalties and commit to extensive safety measures to address the fallout from the tragic crashes.
