In a significant development, Boeing has agreed to plead guilty to a criminal fraud conspiracy charge related to the two 737 MAX fatal crashes in Indonesia and Ethiopia in 2018 and 2019, which killed 346 people. According to reports, the company will pay a criminal fine of USD 243.6 million and invest at least USD 455 million over three years to strengthen its safety and compliance programs.
The charge stems from Boeing's false representations to the Federal Aviation Administration (FAA) about a key software feature, the Maneuvering Characteristics Augmentation System (MCAS) designed to automatically push the aeroplane’s nose down in certain conditions. The company made knowingly false statements about the feature, which was tied to the two crashes.
As part of the plea agreement, Boeing's board of directors will meet with relatives of the crash victims. The company will also serve probation and commit to not violating any laws until the end of the monitor's three-year term. A third-party monitor will oversee Boeing's compliance and file annual reports with the court.
The agreement does not shield any executives, and charges against individuals are seen as unlikely due to the statute of limitations. The plea spares Boeing a contentious trial and allows the company to move forward with its planned acquisition of Spirit AeroSystems.
However, families of the victims have expressed concerns that the deal does not hold Boeing accountable for the deaths and intend to oppose the agreement. The US Department of Justice and Boeing are working to document the full written plea agreement, which will be filed in federal court in Texas by 19 July.
This development marks a significant milestone in the ongoing crisis surrounding Boeing, which has faced intense scrutiny over its safety and quality issues. The company also facing a separate ongoing criminal probe into a January incident involving a 737 MAX 9 jet.