Boeing, the American aerospace giant, has agreed to plead guilty to a criminal fraud charge related to the two deadly crashes of its 737 Max jetliners in 2018 and 2019. The plea deal comes after the Justice Department determined that Boeing had violated an agreement that had protected the company from prosecution for over three years. Federal prosecutors accused Boeing of deceiving regulators who approved the airplane and pilot-training requirements.
Under the terms of the plea deal, Boeing will pay an additional $243.6 million fine, the same amount it paid under a previous settlement that was breached. An independent monitor will be appointed to oversee Boeing’s safety and quality procedures for the next three years. However, it is important to note that the plea deal only covers wrongdoing by Boeing before the crashes and does not provide immunity for other incidents.
The charges against Boeing stem from its failure to disclose information about a flight-control system implicated in the crashes. The Lion Air pilots in the first crash were unaware of this system, while the pilots for Ethiopian Airlines knew about it but were unable to control the plane when the system activated based on faulty sensor data. The Justice Department alleged that Boeing misled regulators about the software and the training pilots would need to safely operate the aircraft.
The guilty plea will be entered in U.S. District Court in Texas, where the judge overseeing the case has criticized Boeing’s “egregious criminal conduct.” The judge may accept the plea and sentence or reject it, leading to new negotiations between the Justice Department and Boeing.
Relatives of the crash victims were briefed on the plea offer and expressed their intention to ask the judge to reject it. They have been pushing for a criminal trial that could shed light on what Boeing officials knew about deceiving regulators. Some have called for top Boeing executives to be prosecuted, not just the corporation.
The criminal conviction could have serious implications for Boeing’s status as a federal contractor, as U.S. agencies can exclude companies from doing business with the government based on criminal convictions. Boeing is an important contractor for the Defense Department and NASA. However, legal experts suggest that agencies have discretion in deciding whether to bar convicted companies from government contracts.
Boeing has faced previous legal troubles, including a $615 million fine in 2006 for criminal and civil charges. The company has a significant number of employees and relies heavily on government contracts for revenue, particularly in the defense sector.
The plea deal comes at a time when Boeing’s safety record has been under scrutiny. A recent incident involving a panel blowing off a Max jetliner during an Alaska Airlines flight led to a new investigation by the Justice Department and increased oversight by the FAA. Boeing has been working to regain public trust and ensure the safety of its aircraft, but the guilty plea highlights the need for further accountability and transparency within the company.
In conclusion, Boeing’s decision to plead guilty to a criminal fraud charge marks a significant step in holding the company accountable for its actions leading up to the 737 Max crashes. The plea deal, if approved by a federal judge, will result in a substantial fine and the appointment of an independent monitor to oversee Boeing’s safety procedures. However, it is important to recognize that this plea deal only addresses wrongdoing before the crashes and does not provide immunity for other incidents. The plea deal also does not cover any current or former Boeing officials. The outcome of this case will have implications for Boeing’s future as a federal contractor, and it remains to be seen whether further prosecutions will be pursued.
