Boeing and DOJ finalize 737 MAX plea deal
Boeing and the Department of Justice (DOJ) have finalized an agreement in which the planemaker takes the blame for conspiracy to defraud the United States by failing to take necessary safety measures following the two fatal crashes of the 737 MAX 8.
The company filed a document in the Northern District of Texas court on Wednesday and will await Judge Reed O’Connor’s decision on whether or not it will accept the negotiated terms.
According to the DOJ, Boeing agreed to pay a fine of US$243.6 million after violating an agreement signed in 2021 that provided that the company would make appropriate arrangements to ensure the safety of its aircraft.
However, Boeing continued to have serious flaws in assembly line procedures to the point where a door plug on an Alaska Airlines 737 MAX 9 came loose mid-flight in January.
The agreement also foresees the investment of US$455 million over the next three years in compliance and security programs.
In addition, Boeing will be on probation for three years, a period during which in theory it would not be able to participate in public tenders, but this aspect may have been negotiated with prosecutors.
Avoided public trial
Boeing was at risk of being criminally accused of the crash of Lion Air jets in 2018 and Ethiopian Airlines in 2019, which killed 346 people.
The agreement avoids public exposure that would further erode his shattered public image. However, the victims’ relatives will be able to object to the settlement within a week, before Judge O’Connor announces his decision.
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