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Boeing is set to plead guilty to charges of criminal fraud related to two 737 Max crashes that resulted in 346 fatalities.
Under the terms of the plea deal, which still awaits federal court approval, Boeing will pay a $487.2 million fine and invest at least $455 million into compliance and safety programs. This agreement also requires the company to be monitored independently for three years to ensure adherence to safety standards. The deal stems from accusations that Boeing deceived regulators about the flight-control system implicated in the crashes, one in Indonesia in 2018 and another in Ethiopia in 2019.
Paul Cassell, an attorney representing families of the victims, criticized the deal, calling it a “sweetheart deal” that fails to hold Boeing accountable for the loss of lives. He urged the judge to reject the agreement to pave the way for a public trial.
This comes after the DOJ previously charged Boeing in 2021 for conspiracy to defraud the government, which included a settlement agreement that Boeing breached. In addition to three years of court-supervised probation, the deal mandates Boeing’s board to meet with victims’ families, a condition sought by the families’ counsel.
Despite the plea deal, Boeing’s future as a federal contractor remains uncertain. Legal experts and some lawmakers have raised concerns about potential jeopardy to Boeing’s status with the US government over a plea deal. Last month, US Senator Richard Blumenthal said, “We want Boeing to succeed. Boeing needs to succeed for the sake of the jobs it provides, for the sake of local economies it supports, for the sake of the American traveling public, for the sake of our military.”
More than just commercial jets:
In addition to being the world’s largest commercial aircraft manufacturer, Boeing is a major defense contractor for the US government, supplying a wide range of military aircraft, satellites, and defense systems. Boeing’s defense sector provides critical assets like fighter jets, drones, missile defense systems, and space exploration technologies. In fiscal year 2023, the company received approximately $22.5 billion in defense contracts, contributing significantly to the US defense budget. The company employs around 140,000 people, with approximately 70,000 of these jobs directly supporting its defense and aerospace operations.
