Boeing executives have agreed to a $243.6 million plea deal to avoid a criminal trial over two fatal 737 Max crashes.
This agreement will see Boeing pleading guilty to a criminal fraud charge related to the two incidents: the Lion Air Flight 610 crash in Indonesia in October 2018 and the Ethiopian Airlines Flight 302 crash in Ethiopia in March 2019. These tragedies resulted in the loss of 346 lives.
In addition to the hefty fine, Boeing is required to invest at least $455 million in compliance and safety programs. An independent monitor will oversee Boeing’s safety and quality procedures for the next three years. This plea deal follows a decision by federal prosecutors who offered Boeing the choice between entering a guilty plea and paying the fine or facing a trial on felony criminal charges of conspiracy to defraud the United States. Prosecutors argued that Boeing misled regulators who approved the airplane and its pilot-training requirements.
The plea deal must be approved by a federal judge in Texas. The judge has previously criticized Boeing’s “egregious criminal conduct” and has the authority to either approve or reject the agreement. If the judge rejects the plea deal, the Justice Department would likely have to negotiate a new agreement with Boeing. However, this plea deal only covers the company’s actions before the crashes and does not provide immunity for other incidents, such as a recent panel incident on a Max jetliner during an Alaska Airlines flight. It also does not protect any current or former Boeing officials from prosecution.
Attorneys representing some of the crash victims’ families have vowed to pressure the judge to reject the agreement. Paul Cassell, an attorney for the families, criticized the deal, calling it a “sweetheart deal” that fails to address the deaths of 346 people. He argued that Boeing’s crimes are being hidden through legal maneuvering between Boeing and the Department of Justice (DOJ). The families have been pushing for a criminal trial, believing it would reveal that Boeing executives knowingly deceived the Federal Aviation Administration (FAA) about the faulty flight-control system. They also want the DOJ to prosecute those officials.
Ike Riffel, whose sons died in the Ethiopian Airlines crash, expressed frustration, stating that Boeing has paid fines in the past without significant changes. He believes that real change will only come when individuals start facing prison time for their actions.
The two crashes involved the Maneuvering Characteristics Augmentation System (MCAS), which automatically pointed the nose of the planes down based on faulty sensor readings. Pilots were unable to regain control. On October 29, 2018, Lion Air Flight 610 crashed into the Java Sea 13 minutes after takeoff, killing all 189 passengers and crew. The pilots were unaware that the software could push the nose of the plane down. On March 10, 2019, Ethiopian Airlines Flight 302 crashed near Bishoftu, Ethiopia, six minutes after takeoff, killing all 157 people on board. The pilots knew about the software issue but could not control the plane when the software activated based on incorrect sensor information.
Despite the crashes, Boeing downplayed the significance of the MCAS system and did not overhaul it until after the second crash. The Justice Department investigated Boeing in 2021 and charged the company with deceiving FAA regulators about the software and the required pilot training. After secret negotiations, the government agreed not to prosecute Boeing on a charge of defrauding the United States in exchange for the company paying $2.5 billion. This amount included a $243.6 million fine, a $500 million fund for victim compensation, and nearly $1.8 billion to airlines whose Max jets were grounded.
In May, officials determined that Boeing had breached the agreement, leading to the possibility of criminal charges. Glenn Leon, head of the Justice Department’s criminal division’s fraud section, stated in a letter filed in Texas federal court that Boeing failed to make the necessary changes to prevent it from violating federal anti-fraud laws, which was a condition of the 2021 settlement. The department claimed that Boeing did not “design, implement, and enforce a compliance and ethics program to prevent and detect violations of U.S. fraud laws.”
Lawmakers have also released a report with allegations from a Boeing quality assurance inspector, Sam Mohawk, who claimed that the company installed faulty parts on planes and that he was instructed by his managers to conceal the evidence from government regulators. Boeing officials denied these claims, asserting that they have honored the terms of the agreement and will engage with the Department of Justice with transparency.
During a recent Senate hearing, Boeing CEO David Calhoun apologized to the families of the crash victims, expressing his and his team’s deep remorse.
