Boeing to plead guilty to conspiracy charges related to 737 Max plane crashes

Boeing, the airplane manufacturer that has been on a downturn in the last few years, has agreed to plead guilty to a charge of conspiracy to defraud the United States stemming from two fatal crashes of the 737 Max planes that killed 346 passengers in 2018 and 2019.

The move will help Boeing avoid a trial in the case.

The US department of Justice on Sunday said the aviation giant has also agreed to pay a criminal fine of $243.6 million as well as agreed to invest at least $455 million over the next three years to strengthen its safety and compliance programs.

An independent monitor would be appointed to oversee Boeing’s safety and quality procedures for three years as well. 

Boeing told AFP in a statement:

We have reached an agreement in principle on terms of a resolution with the Justice Department, subject to the memorialization and approval of specific terms.

What are the charges?

Boeing was accused by the US Department of Justice of violating a 2021 settlement that enabled the government to defer prosecution against the company provided it abided by the obligations outlined in a three-year agreement. 

In the 2021 settlement, Boeing had admitted to defrauding the Federal Aviation Administration (FAA) about a flight control system linked to the crashes.

It had agreed to pay over $2.5 billion in fines and compensation to airline customers and families of the crash victims including a $243.6 million criminal fine, and pledged to improve its internal safety controls. In return, the DoJ would withdraw the criminal charge against it. 

Boeing was kept on a 3-year probation to observe its adherence to the settlement after which the charges would have been dismissed.

However, days before the period was about to expire, the infamous door plug blowout incident happened at the 737 Max 9 operated by Alaska Airlines.

The DoJ therefore determined that Boeing failed to meet the terms of the settlement which required it to set up and maintain a program to detect and prevent violations of U.S. anti-fraud laws.

What does pleading guilty mean for Boeing and its future?

The plea deal will have to receive the approval of a federal judge to get executed. 

While Boeing has been spared of a trial which would have invited an even larger public glare to its steps and missteps that led to the fatal crashes, a guilty plea nonetheless tarnishes the reputation of the company and may make it difficult for it to land government contracts. 

Lawyers’ of victims’ families criticise the “sweetheart deal”

Lawyers representing the relatives of the victims of the crashes have said they will urge the judge to reject the agreement. 

“This sweetheart deal fails to recognise that because of Boeing’s conspiracy, 346 people died. Through crafty lawyering between Boeing and DoJ, the deadly consequences of Boeing’s crime are being hidden,” said Paul Cassell who represents some of the families.