Boeing to Plead Guilty to 737 MAX 8 Criminal Fraud Charge
Boeing is set to plead guilty to a criminal fraud charge related to the deadly 737 MAX 8 crashes in 2018 and 2019. This news arrives six months after a high-profile incident involving an Alaska Airlines 737 MAX 9, which further questioned the safety of this aircraft model.
Prosecutors claim that two Boeing pilots concealed crucial information about the aircraft's automated control system from the Federal Aviation Administration (FAA). This development is a stark contrast to Boeing's 2021 settlement, which protected the company from prosecution at that time.
According to The Washington Post, Boeing agreed to plead guilty to conspiring to deceive regulators concerning the crashes of Lion Air flight 610 and Ethiopian Airlines flight 302, which resulted in 346 fatalities. The company has confirmed this decision, stating that they have reached an agreement in principle with the Justice Department.
Documents filed by the US Department of Justice in a Texas federal court outline the plea deal's terms. Boeing will be fined $243.6 million, the same amount it paid in the 2021 settlement. Additionally, an independent compliance monitor will be appointed for three years to oversee Boeing's adherence to the terms during a probationary period. The company is also required to invest $455 million in compliance and safety programs.
The 737 MAX's automated control system was found to cause uncontrollable dives, leading to the fatal crashes. Prosecutors allege that Boeing withheld information about this system to avoid repercussions. A hearing for the victims' families has been scheduled, allowing them to address Boeing's board of directors. The court will then decide whether to accept the plea agreement, requiring approval from a federal judge.
With a guilty plea, Boeing will be labeled a felon, further tarnishing its reputation. This may complicate its ability to sell products to the government, as defense, space, and security contracts constitute over 30% of its $80 billion annual revenue. Last month, prosecutors informed the victims' families of the impending guilty plea, which attorneys criticized as a "sweetheart deal."
Boeing's plea deal highlights the Justice Department's commitment to holding the company accountable for its misconduct. This conviction may lead to significant changes within the company and its operations, as it continues to address the fallout from the 737 MAX disasters.