Boeing Will Plead Guilty To Criminal Fraud In Connection With 737 Max Crashes

Boeing has pleaded guilty to a criminal fraud charge related to the fatal crashes of its 737 Max aircraft in 2018 and 2019, in which a total of 346 people lost their lives. This move marks a considerable development in the ongoing saga of the aerospace giant’s accountability for these tragic events. In late October 2018, a Boeing 737 Max operated by Lion Air crashed into the Java Sea shortly after takeoff from Jakarta. The accident killed all 189 passengers and crew onboard.

Just months later, in March 2019, another 737 Max, this time operated by Ethiopian Airlines, suffered a similar fate. The plane crashed shortly after takeoff, resulting in the deaths of all 157 passengers and crew members. These two near-identical crashes led to the global grounding of the 737 Max fleet for over a year. Investigations revealed critical flaws in the aircraft’s Maneuvering Characteristics Augmentation System (MCAS), a flight control software implicated in both crashes.

Boeing’s Criminal Charges And Guilty Plea

Boeing has now admitted to conspiracy charges to defraud the federal government. The Department of Justice (DoJ) accused the company of deceiving the Federal Aviation Administration (FAA) about the safety of the MCAS system, which was a crucial factor in the two crashes. This comes after Boeing violated a prior agreement with the DoJ that required the company to enhance its safety protocols and corporate governance.

The plea deal, finalized over the weekend, includes Boeing paying a $243.6 million criminal fine. Additionally, Boeing will invest $455 million in compliance and safety programs over the next three years, which will be monitored by an independent compliance supervisor during this period. Beyond the criminal fine, the company previously agreed to a $2.5 billion settlement in 2021, which included compensation for victims’ families and airlines that could not receive deliveries of the grounded 737 Max jets.

The total cost of the crashes to Boeing has exceeded $20 billion when accounting for fines, settlements, and the impact on their business operations due to the fleet’s grounding. The guilty plea further affects Boeing’s reputation and business operations. As a key contractor for the U.S. government, Boeing’s newly acquired criminal record could potentially affect its eligibility for future contracts.

However, Paul Cassell, an attorney for several families of victims of the flights in 2018 and 2019, said: “This sweetheart deal fails to recognize that because of Boeing’s conspiracy, 346 people died.” He urged the judge reviewing the deal to dismiss the unjust plea and schedule a public trial so that all relevant facts are presented to a jury in an impartial, open forum.