The U.S. Department of Justice and Boeing have agreed to plead guilty to conspiracy to defraud the U.S. government indictment stemming from two fatal crashes in 2018 and 2019 that killed 346 people. the New York Times reports.
In May, the DOJ announced that Boeing was in violation 2021 contract paying fines and restitution, as well as implementing major security changes — just four months ago, a The cabin panel of an Alaska Airlines plane exploded while 16,000 feet in the air. The DOJ offered the plea deal on June 30, giving the company a week to agree or face trial.
Boeing hit a deal In 2021, the agency pledged to implement major safety changes and zero violations for three years due to these accidents. In May, the DOJ declared the company in breach of contract and on June 30 offered Boeing a choice: accept the claim within a week or go to court.
If the new settlement is approved by the court, Boeing will have to pay $487.2 million in fines — but some of that could be covered by payments made in the original settlement. Boeing will also need to invest at least $455 million security and compliance for the next three years and that a third party appointed by the DOJ monitor its progress.
The agreement has been criticized as insufficient for accident victims. “This sweet deal doesn’t acknowledge that 346 people died as a result of the Boeing conspiracy,” said Paul Cassell, a lawyer representing some of the families. “The deadly consequences of Boeing’s crime are being concealed through insidious advocacy between Boeing and the DoJ.”
in 2021 Boeing agreed to pay $1.77 billion to its customers compensation after authorities grounded the 737 Max for a year and a half. The deal also includes the company paying $243.6 million in fines to the heirs, relatives and legal beneficiaries of passengers killed in the flights near Indonesia and Ethiopia and $500 million to the crash victims’ fund.
The Federal Aviation Administration’s Aircraft Assessment Group (FAA AEG) determined that the Maneuvering Characteristics Augmentation System (MCAS) had engaged while both airplanes were in flight and was the likely point of failure. Two Boeing 737 Max flight maintenance pilots two years before the first accident, the FAA deceived AEG, withholding information about a significant change to MCAS. If approved, the new contract would be Boeing’s first new offense in decades.
