Boeing, known for making airplanes, has agreed to admit guilt in a criminal fraud case. This comes after a U.S. government investigation into two crashes involving its 737 MAX planes in 2018 and 2019. These crashes took place in Indonesia and Ethiopia, causing the tragic deaths of 346 people.
The agreement, which still needs a judge's approval, means Boeing would be considered a convicted felon for its role in these crashes. Families of the victims have expressed disappointment, as they wanted Boeing to face a trial and more severe financial penalties.
The U.S. Justice Department's decision to pursue charges against Boeing has worsened an ongoing crisis for the company. This crisis started when another safety issue was revealed earlier this year. If convicted, Boeing could face challenges in securing important contracts from government bodies like the U.S. Defence Department and NASA, although it might ask for special permission to do so.
Boeing got into legal trouble after violating an earlier settlement related to these crashes. By agreeing to plead guilty now, Boeing avoids a lengthy trial that could have exposed more details about its decisions before the crashes.
A spokesperson for Boeing confirmed that they have reached a preliminary agreement with the Justice Department. As part of this deal, Boeing has agreed to spend at least $455 million over the next three years to improve safety and follow the rules better. The company's board will also meet with the families of crash victims.
However, some lawyers representing victims' families plan to oppose the deal in court. They argue that the proposed penalties are too lenient, given the severity of the crashes.
The plea agreement focuses on Boeing's actions leading up to the fatal crashes and does not protect the company from other ongoing investigations. It also does not shield any Boeing executives from potential future charges.
Boeing's penalty includes a fine of $243.6 million, which represents the amount the company saved by not requiring full-flight simulator training for pilots of the 737 MAX planes.
The Justice Department and Boeing are finalising the details of their agreement and plan to submit it to a federal court by mid-July.
