On Sunday, a government official stated that Boeing has agreed to plead guilty to a criminal conspiracy charge of fraud in order to settle an investigation by the US Department of Justice connected with two fatal crashes involving the 737 MAX. The court has yet to approve it, but this plea would see the firm being declared a felon. Furthermore, there will be a $243.6 million payment to make as criminal fines according to an official from the JOD.
In 2018 and 2019, two crashes involving 737 MAX planes occurred in Indonesia and Ethiopia within five months claiming the lives of 346 people. This makes families of victims want Boeing prosecuted for these killings.
While it could request exemptions, entering a guilty plea might threaten future access by the company to lucrative contracts with entities such as NASA and the U.S. Defense Department. The Justice Department had put Boeing under scrutiny after finding out in May that it had contravened a settlement on fatal accident cases made earlier this year.
Boeing would sidestep a contentious trial that might have subjected its pre-fatal MAX plane crash decisions into intense public scrutiny through reaching this plea agreement. It will also aid the company move on especially ahead of its planned acquisition of Spirit AeroSystems asking for approval again closer end year when there is expected change at top management level. No comments have bee given by Boeing concerning this matter.
The official also mentioned that apart from paying criminal fine, Boeing agreed to spend at least $455m over three years for safety and compliance program enhancement. A third party monitor appointed by DOJ shall be responsible for oversighting compliance while publicly filling annual reports detailing progress before Court’s eyes shall be his/her duty.
This came after another panel blew off new Alaska Airlines’ flight jet Boeing 737 MAX 9 during January flight just two days before expiration date of deferred prosecution agreement in connection with previous fatal accidents entered into effect in January. Aside from any other potential investigations or charges related to the incident of January or other conduct, the agreement only covers Boeing’s behavior before the dangerous accidents.
A plea agreement was offer by DOJ to Boeing on June 30th and it gave the company until end of the week to agree or head to court on a charge of conspiring with Federal Aviation Administration in connection with some critical software feature tied to previous fatal accident. Following last week’s consultation regarding this offer by USDOJ, a lawyer representing families of some victims criticized it as “sweetheart deal” and vowed to oppose it in court.
The Justice Department’s bid to bring charges against Boeing has heightened concerns over an ongoing crisis that surfaced after a separate in-flight blowout during January revealed further safety and quality lapses inside maker of planes.
It happened when panel blew off during Alaska Airlines flight from Seattle/Tacoma International airport bound for Ketchikan, Alaska on January 5, just two days prior expiration date set at them under deferred prosecution agreement (DPA) under which company faced no more suits arising out previous plane crashes.
The DPA only released Boeing from liability for its acts preceding since it happened before tragic accidental incidents on these planes but does not protect it from any other possible inquiries or accusations linked with actions in January or later.
Boeing will admit guilt on knowing making false statements to the FAA when saying that it had updated a key software feature of MAX to perform at low speeds. For Boeing, this new software saved money by demanding less rigorous training for pilots. Maneuvering Characteristics Augmentation System (MCAS) is a feature that automatically pushes down the aircraft’s nose under certain conditions.
This was link with two accidents leading to grounding of the jet by FAA for 20 months costing Boeing $20billion and lifted in November 2020 by the government. According to the official, as part of the agreement, Boeing’s board of directors will meet with relatives of those who died in the MAX crashes. This does not mean that any executives are protected according to the DOJ official, although charges against individuals are unlikely given the statute of limitations.
Boeing’s agreed penalty would be its second fine related to fatal crashes, worth $243.6 million each with combined maximum fine. The company previously paid this as a result of its $2.5 billion settlement in 2021. The amount of $243.6 million represented how much Boeing avoided paying full flight simulator training.
The previous deal was criticize by families of victims from these accidents who earlier this year pressed U.S Justice Department officials to seek up to $25 billion from Boeing for such an offense. This year, families have spoken out through several meetings with DOJ about their concerns following a breach that occurred sometime back in 2021 involving Boeing.
