Boeing to plead guilty to criminal charges over two fatal MAX crashes
Boeing is to plead guilty to a criminal fraud charge relating to two fatal 737 MAX crashes, the US Department of Justice (DoJ) has confirmed, which will entail a second $243.6 million fine.
Alongside pleading guilty to “the most serious readily provable offense,” this agreement would “hold Boeing accountable for its material misstatements to the Federal Aviation Administration,” require it to pay the statutory maximum fine, invest at least $455 million in compliance and safety programmes, and impose a three-year independent compliance monitor.
The “maximum criminal fine for the charged offence” of $243.6 million will be in addition to an equal amount already paid by Boeing, taking the total fine to $487.2 million. The total of $455 million in safety and compliance, moreover, represents approximately 75% more than the company’s expenditure on compliance in fiscal year 2024 (when divided on an annualised basis).
The “agreement in principle on the terms of a proposed plea agreement” was revealed in a court filing, with the US government and Boeing “proceeding expeditiously to document and memorialize the terms and understandings”.
Families of the victims of the 2018 Lion Air and 2019 Ethiopian Airlines crashes have already expressed their intention to oppose the plea agreement, preferring instead to proceed to a criminal trial. As such, the government will postpone scheduling an upcoming trial until at least 12 July while it meets with all stakeholders. Under the proposed guilty plea, the court will be allowed to “determine the restitution amount for the families in its discretion”.
The plea agreement will not provide Boeing with immunity for any other conduct, including “any conduct that may be the subject of ongoing or future government investigations of the company”.
