Boeing has agreed to plead guilty to criminal fraud charges related to the 737 MAX crashes in 2018 and 2019, which resulted in 346 deaths. The plea deal, announced by the U.S. Department of Justice, requires Boeing to pay a $243.6 million fine and invest an additional $455 million over three years to strengthen its safety and compliance programs.The agreement includes a three-year probation period and oversight by an independent monitor. Boeing’s board of directors will also be required to meet with the families of the victims. This plea deal allows Boeing to avoid a potentially damaging trial, but it may impact the company’s ability to secure lucrative government contracts, particularly with the U.S. Department of Defense and NASA.Families of the victims have expressed strong disappointment with the agreement, describing it as a ‘sweetheart deal’ that fails to hold Boeing fully accountable for the deaths. Some plan to oppose the deal in court, arguing that it does not sufficiently address Boeing’s safety culture.In a significant development, Boeing’s CEO, Dave Calhoun, is set to step down at the end of 2024. Additionally, the Federal Aviation Administration (FAA) has indicated it will not quickly authorize Boeing to increase production of the 737 MAX, further complicating the company’s recovery efforts.The plea deal does not provide immunity for other incidents, such as the recent panel detachment on an Alaska Airlines flight in January 2024. Boeing admitted to knowingly providing false information to the FAA about the Maneuvering Characteristics Augmentation System (MCAS), which was critical to the crashes.This agreement stems from Boeing’s violation of a 2021 deferred prosecution agreement aimed at improving its compliance and ethics program following the two crashes. The current deal, which still requires approval from a federal judge, brands Boeing as a felon, potentially complicating its operations as a major defense contractor and builder of presidential aircraft.
Key points
- Boeing agrees to plead guilty to criminal fraud charges related to 737 MAX crashes, paying $243.
- CEO Dave Calhoun to step down at the end of 2024, amid ongoing scrutiny and FAA’s reluctance to authorize increased 737 MAX production.
- Families of crash victims criticize the plea deal as insufficient, planning to oppose it in court.
- The agreement may impact Boeing’s ability to secure government contracts and complicates its status as a defense contractor.
6 million in fines and investing $455 million in safety programs.
Contradictions👾Some sources report the fine as $243.
6 million, while others mention $244 million or ‘nearly $250 million’.
There’s also a discrepancy in the total amount Boeing will pay, with some sources citing close to $1 billion when including both the fine and the safety investments.
