Summary
- DOJ reportedly offers Boeing a plea deal to avoid trial for its role in 737 MAX crashes.
- Deal includes pleading guilty to a conspiracy charge, an independent audit, and a $243 million fine.
- MAX victim families oppose the deal, arguing it doesn’t acknowledge Boeing’s role in the crashes.
The US Department of Justice (DOJ) will reportedly offer Boeing a plea deal that will allow the planemaker to avoid going to trial for its role in the two 737 MAX crashes in 2018 and 2019. Under the deal, Boeing would be required to plead guilty to a conspiracy charge and agree to an independent audit for three years.
Boeing conspiracy charges update
Two sources familiar with the matter told Reuters on Sunday that the DOJ plans to pursue criminal proceedings against Boeing, but may consider allowing Boeing to accept a plea deal to avoid a trial. After a phone consultation with families of victims of the two MAX crashes, the DOJ reportedly shared the details of a new plea agreement with the planemaker on Sunday – along with pleading guilty to conspiring to mislead regulators, the deal would include being audited by an external monitor, a three-year probationary period and a fine of $243 million.
Photo: VDB Photos | Shutterstock
In May, the Justice Department determined that Boeing broke the conditions of its 2021 deferred prosecution agreement (DPA), which had allowed the company to avoid prosecution for the MAX crashes if it overhauled its safety and compliance practices. Boeing will have until July 7th to decide whether to accept the plea deal, after which the DOJ will launch criminal proceedings against the US planemaker. Should it go to trial, it would heap more scrutiny on a company that has already faced Senate hearings, whistleblower leaks, and an enhanced FAA audit this year.
Defense contract ramifications
Along with its commercial portfolio, Boeing is a major defense manufacturer and owes a considerable share of its revenues to contracts with the US government. However, a guilty plea could cause a significant headache in this department due to regulations preventing the government from awarding contracts to companies with felony convictions.
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While it is still possible to grant waivers to such companies, it is unclear what kind of impact a guilty plea would have on Boeing’s future defense contract prospects.
MAX victim families to oppose it
According to their legal teams, the families of the victims of those onboard do not agree with the deal as it does not force Boeing to admit
In a statement, attorneys Robert Clifford and Paul Cassell said,
“The deal will not acknowledge, in any way, that Boeing’s crime killed 346 people. It also appears to rest on the idea that Boeing did not harm any victim. The families will strenuously object to this plea deal.”
Photo: Robin Guess | Shutterstock
The company is already facing enhanced scrutiny in the fallout of the Alaska Airlines plug door incident, including a production cap placed on its 737 MAX production line. It has also faced allegations from multiple whistleblowers alleging improper production practices and intimidation against employees who speak out.
One family member, Javier de Luis, added in a statement,
“The penalties proposed here are essentially the same as those proposed under the previous DPA which, as Alaska Air demonstrated, did nothing to increase the safety of the flying public.”
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