Boeing has reached a plea agreement with the US Justice Department to plead guilty to fraud charges related to the two fatal crashes of its 737 Max jets that occurred in 2018 and 2019. The families of the 346 victims of these crashes have raised objections to the terms of the deal, arguing that the fines and penalties are not sufficient to hold Boeing accountable for the deaths of their loved ones. The Justice Department defended the agreement, stating that it was fair and just, and that it had taken into account the concerns of the families during the negotiation process. Boeing also expressed regret for the losses suffered by the families and stated that it was prepared to accept ultimate responsibility for the crime of conspiring to defraud regulators.
Under the terms of the plea agreement, Boeing agreed to pay up to $487 million in fines and to spend $455 million on compliance and safety programs over the next three years. Additionally, the company agreed to operate under the supervision of a court-appointed monitor for three years to ensure it improved the quality and safety of its aircraft. The families of the crash victims argued that the fine amount was too low and did not adequately address the design flaw in the planes that caused the crashes. Despite these objections, Boeing and the Justice Department defended the agreement, stating that it represented a significant increase in investment in safety and compliance programs.
The plea agreement marked a significant blow to Boeing’s reputation, which has been tarnished by a series of problems over the past six years. In addition to the 737 Max crashes, the company has faced questions about the safety and quality of its planes, including a recent incident involving a door plug blowing out on a 737 Max flown by Alaska Airlines. The Justice Department argued that the penalties agreed to in the plea deal were the most serious available and would lead to improvements in Boeing’s safety and compliance practices. The charges against Boeing included defrauding the FAA during the certification process for the 737 Max, which led to a grounding of the jets for 20 months.
Boeing admitted responsibility for the fatal crashes and acknowledged that its employees withheld critical information about a design flaw in the planes’ autopilot system from the FAA during the certification process. In January 2021, the company reached an agreement with federal prosecutors to settle criminal charges and entered a three-year probationary period to improve its quality control and transparency. However, a subsequent incident with Alaska Airlines led to further scrutiny of Boeing’s practices and the prosecution under the original agreement. Despite the objections from the families of the crash victims, Boeing and the Justice Department stated that the plea agreement represented a fair resolution to the case and would lead to significant improvements in the company’s safety practices.
