News Mania Desk/Agnibeena Ghosh/8th July 2024
In a significant development, Boeing will plead guilty to a criminal fraud charge linked to the two catastrophic crashes of its 737 Max jetliners, which claimed 346 lives. The Justice Department announced this decision on Sunday night after determining that Boeing breached an agreement that had shielded it from prosecution for over three years.
Federal prosecutors had presented Boeing with two choices last week: either plead guilty and pay a fine as part of its sentence or face a trial on the felony charge of conspiracy to defraud the United States. The prosecutors accused Boeing of misleading regulators responsible for approving the airplane and its pilot-training requirements.
The plea deal, which still requires a federal judge’s approval, includes an additional $243.6 million fine—matching the amount Boeing paid under a 2021 settlement that the Justice Department says the company violated. An independent monitor will oversee Boeing’s safety and quality procedures for three years. Additionally, Boeing is mandated to invest at least $455 million in its compliance and safety programs.
The plea deal only addresses Boeing’s wrongdoing before the crashes, which occurred in Indonesia in October 2018 and Ethiopia less than five months later, killing all passengers and crew members on the two new Max jets. This agreement does not grant Boeing immunity for other incidents, such as a panel that blew off a Max jetliner during an Alaska Airlines flight in January. The Justice Department confirmed this limitation.
While Boeing confirmed reaching a deal with the Justice Department, the company did not provide further comments. The written plea agreement is expected to be filed with the court by July 19. Lawyers representing some relatives of the crash victims have expressed their intent to urge the judge to reject the agreement. They argue that the deal fails to hold Boeing accountable for the deaths resulting from its conspiracy.
Federal prosecutors accused Boeing of conspiring to defraud the government by deceiving regulators about a flight-control system implicated in the crashes. This system could push the plane’s nose down without pilot input, a fact unknown to the Lion Air pilots in the first crash. Despite being aware of the system, Ethiopian Airlines pilots couldn’t control the plane when it activated based on faulty sensor data.
In the January 2021 settlement, the Justice Department had agreed not to prosecute Boeing if it met specific conditions for three years. However, prosecutors recently claimed that Boeing breached this agreement. The company’s guilty plea will be entered in U.S. District Court in Texas, where the judge has previously criticized Boeing’s conduct.
The case’s origins trace back to the crashes and Boeing’s subsequent actions. After the crashes, Boeing grounded the Max jets for 20 months and made adjustments to the flight software. Despite these efforts, the recent incident involving the Alaska Airlines flight has renewed scrutiny of Boeing’s safety practices.
A criminal conviction could jeopardize Boeing’s status as a federal contractor, a concern for many given Boeing’s critical role in defense work and its extensive government contracts. Boeing’s relationship with the U.S. government is significant, with 37% of its revenue last year stemming from these contracts.
Relatives of the crash victims have been vocal in their calls for a criminal trial to uncover the extent of Boeing’s internal knowledge about deceiving the FAA. They seek accountability not just from the company but also from top Boeing officials.
Boeing CEO David Calhoun has publicly apologized to the victims’ families, but the company faces ongoing challenges, including new whistleblower allegations of defective parts. The resolution of this case and its impact on Boeing’s operations and reputation will be closely watched, highlighting the broader implications for corporate accountability and aviation safety.
