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A plea arrangement with the US Department of Justice is criticized by a crash victim’s family attorney as being a sweetheart deal.
To avoid going on trial in the US on allegations arising from two deadly incidents involving its 737 Max, Boeing has consented to enter a guilty plea to fraud.
The US Department of Justice stated in a court document on Sunday that Boeing will have to invest at least $455 million in its compliance and safety procedures and pay a fine of $243.6 million as part of the plea agreement.
The massive aircraft manufacturer would also consent to have its safety and quality control systems evaluated for three years by an outside monitor.
“We can confirm that, subject to the memorialization and approval of specific terms, we have reached an agreement in principle on terms of a resolution with the Justice Department,” a statement from Boeing said.
The plea deal that was revealed on Sunday solely addresses Boeing’s liability for the 737 Max crashes that occurred in 2018 and 2019. It does not address any other occurrences, like as the mid-air burst of Alaska Airlines Flight 1282 in January, that have prompted concerns about the company’s safety standards.
A federal judge must approve the contract, which solely benefits the corporation and excludes any former or present employees.
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Boeing can lose out on federal contracts, which make up around 40% of its income, as a result of its guilty plea because US agencies can disqualify bidders based on a criminal record.
However, the aircraft manufacturer might ask for waivers to keep doing business with the government, and it’s questionable if organizations like NASA and the US Department of Defense would be ready to sacrifice such a significant supplier.
