Boeing, the American aerospace giant, has agreed to plead guilty to a criminal fraud charge stemming from two fatal crashes of its 737 Max jetliners that killed 346 people. The company faces an additional $243.6 million fine and at least $455 million investment in compliance and safety programs as part of the plea deal.
The Federal Aviation Administration (FAA) regulators allege Boeing committed conspiracy to defraud the government by misleading them about a flight-control system implicated in the crashes. The system, known as MCAS, was not disclosed properly during the regulatory approval process.
Boeing's deception came to light after two tragic incidents: Lion Air Flight JT610 crashed into the Java Sea on October 29, 2018, killing all 189 passengers and crew. Ethiopian Airlines Flight ET302 followed suit on March 10, 2019, claiming another 157 lives.
The Justice Department gave Boeing the choice last week of entering a guilty plea and paying a fine or facing a trial on the felony criminal charge. The company opted for the former to avoid lengthy legal proceedings.
Boeing's agreement to plead guilty marks an end to its three-year immunity from prosecution under the 2021 deal, which aimed at reforming Boeing following these devastating crashes.
The families of the victims have expressed disappointment with the plea deal, viewing it as a 'sweetheart deal' that does not hold Boeing fully accountable for their losses. The company will still need to face civil lawsuits and potential regulatory actions.