Boeing executives have accepted a $243.6 million settlement that will spare the company from having to face criminal charges over two deadly 737 Max crashes.
Under the agreement, Boeing will plead guilty to a criminal fraud charge stemming from the deadly crashes in Indonesia in October 2018 and in Ethiopia less than five months later, which killed a total of 346 people.
Boeing must also pay a hefty fine, invest at least $455 million in compliance and safety programs, and have an independent monitor oversee Boeing’s safety and quality procedures for three years.
The agreement came days after federal prosecutors gave Boeing the choice of pleading guilty and paying the fine or facing trial on charges of conspiracy to defraud the United States.
They allege the aerospace company misled regulators who approved the aircraft’s requirements and pilot training.
Boeing executives have accepted a $243.6 million settlement that will allow the company to avoid criminal charges over two deadly 737 Max crashes
The settlement must now be approved by a federal judge in Texas before it can take effect.
The judge, who has previously criticized what he called “Boeing’s outrageous criminal behavior,” could approve the settlement, but he could also reject it entirely, likely prompting the Justice Department to start new negotiations with Boeing.
But even then, the settlement would only cover the company’s mistakes before the crashes, which killed all passengers and crew.
It would not give the company immunity for other incidents, including the panel that blew a Max jet off the map during an Alaska Airlines flight in January. Nor would it protect any current or former Boeing officials, only the company itself.
The settlement would not give the company immunity for other incidents, including a panel that blew a Max jetliner off the runway during an Alaska Airlines flight in January
Lawyers representing some of the families of the crash victims have said they will pressure the judge to reject the settlement.
“This deal ignores the fact that Boeing’s conspiracy cost 346 lives,” said attorney Paul Cassell.
‘Due to cunning legal practices between Boeing and [the] ‘DOJ, Deadly Consequences of Boeing’s Crimes Remain Hidden.’
The families have pushed for a criminal case, arguing that it could prove that Boeing executives knew they were deceiving the Federal Aviation Administration about the flawed flight control system.
They also want the Department of Justice to prosecute these officials.
“Boeing has paid fines many times and there’s no sign of that changing,” said Ike Riffel of Redding, Calif., whose sons died in the Ethiopian Airlines crash.
“When people go to prison, you will see change.”
Lawyers representing some of the families of the crash victims have said they will pressure the judge to reject the agreement
The families have long pushed for a criminal trial, arguing it could prove that Boeing executives knew they were deceiving the Federal Aviation Administration about the flawed flight control system.
In the two crashes – in Indonesia in 2018 and in Ethiopia in 2019 – MCAS automatically pointed the plane’s nose down based on incorrect sensor readings, preventing the pilots from regaining control.
On October 29, 2018, Lion Air Flight 610’s Boeing 737 MAX crashed into the Java Sea 13 minutes after takeoff, killing all 189 passengers and crew.
The pilot was unaware at the time that the software could push the nose of the plane down.
Five months later, on March 10, 2019, the Boeing 737 MAX 8 aircraft operating Ethiopian Flight 302 crashed near the town of Bishoftu, Ethiopia, six minutes after takeoff, killing all 157 people on board.
The pilots of that plane were aware of the software problem but were unable to control the plane when the software was activated based on information from a faulty sensor.
However, Boeing downplayed the importance of the system and only conducted a major overhaul after the second crash.
On October 29, 2018, Lion Air Flight 610’s Boeing 737 MAX crashed into the Java Sea 13 minutes after takeoff, killing all 189 passengers and crew
On March 10, 2019, the Boeing 737 MAX 8 aircraft operating Ethiopian Flight 302 crashed near the town of Bishoftu, Ethiopia
The Justice Department investigated Boeing in 2021, accusing the company of misleading FAA regulators about the software (which did not exist in older 737s) and how much training pilots would need to safely fly the plane.
After secret negotiations, the government decided not to prosecute Boeing for defrauding the United States by misleading regulators who had approved the plane.
In return, the company paid $2.5 billion — a $243.6 million fine, a $500 million fund for victims’ compensation and nearly $1.8 billion to airlines whose Max jets were grounded.
But in May, authorities found the company had breached the agreement, leading to criminal charges.
Glenn Leon, head of the Justice Department’s fraud division, wrote in a letter filed in a federal court in Texas that Boeing had failed to make changes to avoid violating federal anti-fraud laws, a condition of the 2021 settlement.
According to NBC, the department alleges that Boeing failed to “design, implement and maintain a compliance and ethics program to prevent and detect violations of U.S. fraud laws.”
Lawmakers have also released a report containing explosive allegations from a Boeing quality inspector, Sam Mohawk, who said the company installed defective parts in planes and that his managers later told him to hide the evidence from government regulators.
The Justice Department investigated Boeing in 2021, accusing the company of misleading FAA regulators about the software, but decided not to charge the aerospace company
However, Boeing officials denied these claims.
“We believe we have fulfilled the terms of the agreement and look forward to having the opportunity to respond to the Department on this matter,” a spokesperson said at the time.
‘We will deal with the ministry with the utmost transparency, as we have done throughout the term of the agreement, including in responding to their questions following the accident involving Alaska Airlines Flight 1282.’
But during a recent Senate hearing, Boeing CEO David Calhoun apologized to the families of the crash victims.
“I am deeply sorry… my entire team at Boeing, everyone around the world, past and present,” Calhoun said.