NAIROBI, Kenya- In a significant turn of events, Boeing has agreed to plead guilty to a criminal fraud conspiracy charge after the US Department of Justice (DoJ) found the company violated a reform deal following two fatal crashes involving its 737 Max planes.
These crashes, occurring in 2018 and 2019, tragically killed 346 passengers and crew members, plunging Boeing into a prolonged crisis over its safety practices.
Under the agreement with the US Department of Justice, Boeing will pay a criminal fine of $243.6 million, avoiding the spectacle of a criminal trial that many victims’ families had been advocating for.
This settlement has been harshly criticized by the families as a “sweetheart deal,” suggesting it allows Boeing to sidestep full accountability for the lives lost.
By pleading guilty, Boeing admits to deceiving regulators about the MCAS flight control system, a key factor in both crashes.
This deal follows a previous agreement in 2021, where Boeing agreed to pay $2.5 billion to resolve the matter, including a $243 million criminal penalty and $500 million to a victims’ fund.
Despite these measures, the plea deal remains controversial, especially among those who lost loved ones in the crashes.
Lawyer Paul Cassell, representing some families, has argued that the punishment is insufficient, urging the DoJ to impose fines exceeding $24 billion.
Boeing’s safety record continues to be under intense scrutiny. In January, a door panel on a Boeing plane operated by Alaska Airlines blew out soon after takeoff, forcing an emergency landing.
Although no one was injured, this incident raised serious questions about Boeing’s progress in improving its safety standards.
In response, the DoJ found that Boeing had violated the terms of their previous agreement, which opened the door to potential prosecution.
The plea deal, while preventing a criminal trial, still marks a significant black mark for Boeing, which is a prominent military contractor for the US government.
It is unclear how this criminal record will impact Boeing’s contracting business, as the government typically restricts firms with criminal records from participating in bids, though waivers can be granted.
The deal has sparked widespread criticism. Ed Pierson, Executive Director of the Foundation for Aviation Safety and a former Boeing senior manager, called it a “terrible deal for justice,” arguing that individuals responsible should be held accountable.
Legal experts note that plea deals like this one are often preferred by prosecutors to avoid the risks of a trial, which can sometimes lead to stronger sanctions than a typical sentence.
Mark Cohen, a professor emeritus at Vanderbilt University, highlighted that Boeing’s status as a key government contractor likely influenced the decision to opt for a plea deal over a trial.
While the plea deal may provide some closure, it leaves many victims’ families feeling that justice remains elusive.
