Last week, federal prosecutors gave Boeing the option to plead guilty to a criminal fraud charge related to the crashes of two 737 Max jetliners that resulted in the deaths of 346 individuals. The Justice Department stated that Boeing violated an agreement that had shielded it from prosecution for over three years. As part of the plea deal, Boeing will pay a $243.6 million fine and have an independent monitor oversee its safety and quality procedures for three years. Additionally, Boeing is required to invest at least $455 million in its compliance and safety programs.
The plea deal only pertains to Boeing’s actions leading up to the crashes and does not grant immunity for other incidents, such as a panel detachment on a Max jetliner during an Alaska Airlines flight. The agreement solely covers the corporation and not any current or former Boeing officials. Boeing confirmed reaching the deal with the Justice Department but did not provide further comment.
The written plea agreement is expected to be filed with the court by July 19. Some of the families of the crash victims have expressed their intention to petition the judge to reject the agreement. The plea deal, if accepted by the judge, will be entered in U.S. District Court in Texas. The judge could either accept the plea and sentence proposed by prosecutors or reject the agreement, prompting potential renegotiations between the Justice Department and Boeing.
The case revolves around the crashes in Indonesia and Ethiopia, where faulty flight-control software played a role. Boeing was charged in 2021 for deceiving FAA regulators about the software and pilot training requirements for the 737 Max. Following the crashes, Boeing grounded the Max jets for 20 months, implemented changes to the flight software, and resumed flights. However, a subsequent incident involving a panel detachment on an Alaska Airlines flight led to increased scrutiny of Boeing by regulatory authorities.
A criminal conviction could impact Boeing’s status as a federal contractor, but the plea deal does not address this issue, leaving it up to individual government agencies to decide whether to bar Boeing. Boeing is a key defense contractor with a significant portion of its revenue coming from U.S. government contracts, including defense work and military sales to other countries.
Two astronauts will be staying at the International Space Station for a longer period than planned as Boeing and NASA engineers address issues with the propulsion system of the capsule.
Even critics of Boeing are concerned about the impact on a major defense contractor.
Senator Richard Blumenthal of Connecticut expressed his desire for Boeing to succeed during a Senate hearing, emphasizing the importance of the company for job creation, local economies, the American public, and the military.
Family members of the victims of the Max plane crashes are advocating for a criminal trial to uncover any knowledge within Boeing about deceiving the FAA. They are also urging the Justice Department to prosecute senior Boeing officials, not just the company itself.
During a recent Senate hearing, Boeing CEO David Calhoun defended the company’s safety track record and apologized to the families of the Max crash victims for the pain caused.
Prior to the hearing, a 204-page report was released by the Senate investigations subcommittee, containing fresh allegations from a whistleblower regarding concerns about defective parts being used in 737s. This whistleblower is just one of many current and former Boeing employees who have raised safety issues and faced backlash for doing so.
