Renton, Washington – Boeing has agreed to plead guilty to a criminal fraud conspiracy charge in connection with two deadly crashes involving 737 MAX jetliners. The criminal case is linked to crashes in Indonesia and Ethiopia in 2018 and 2019 that resulted in the deaths of 346 individuals. Families of the victims had been calling for Boeing to face prosecution to be held accountable for the tragic incidents.
The plea deal, subject to a federal judge’s approval, would designate Boeing as a convicted felon. As part of the agreement, Boeing will pay a criminal fine of $243.6 million. This fine is in addition to the $243.6 million that Boeing had already paid for breaching a previous settlement in 2021 by failing to comply with agreed-upon conditions.
The deal only applies to the company itself, not to any current or former Boeing officials. Federal prosecutors had given Boeing the choice between entering a guilty plea and paying a fine or going to trial on a felony criminal charge of conspiracy to defraud the Federal Aviation Administration over a software feature connected to the crashes.
Despite the plea agreement, some families of the crash victims are not satisfied. One lawyer called the deal a “sweetheart deal” and expressed plans to oppose it in court. The families believe that the Justice Department failed to consider all the evidence surrounding the crashes and that Boeing continues to prioritize profits over safety.
In an effort to address safety concerns, Boeing recently announced its plans to acquire Spirit AeroSystems. Additionally, Boeing has committed to investing at least $455 million over the next three years to enhance its safety and compliance programs. A third party appointed by the DOJ will oversee Boeing’s compliance with these measures.
The decision by the Justice Department to charge Boeing came after an incident involving an Alaska Airlines flight that exposed ongoing safety and quality issues with Boeing’s 737 MAX 9 jetliner. The plea agreement, which only covers Boeing’s conduct prior to the fatal crashes in 2018 and 2019, does not shield the company from any potential future charges.
