Boeing will plead guilty to fraud to avoid criminal trial over fatal 737 MAX plane crashes, fined S$328 million

Aerospace company Boeing is expected to plead guilty to criminal fraud involving two 737 MAX plane crashes which occurred in 2018 and 2019, killing 346 people in total.

This comes after the U.S. federal prosecutors offered a plea deal which requires Boeing to plead guilty and pay a fine or face a criminal trial, reported The Associated Press (AP News).

The U.S. government determined that Boeing had violated the terms of a previous plea deal that allowed it to escape prosecution.

Plea deal requires payment of additional fine and investment

Under the plea deal, Boeing will be liable for an additional fine of US$243.6 million (S$328 million), reported AP News.

The company is also required to invest at least US$455 million (S$613 million) in compliance and safety programmes.

Additionally, an independent monitor will oversee its safety and quality procedures for a period of three years.

The plea deal will still require a federal judge's approval before taking effect, and does not grant Boeing immunity for other incidents such as the Alaska Airlines flight in January 2024 involving a panel that came off a 737 Max 9 plane.

According to Reuters, a Boeing spokesperson confirmed that it had "reached an agreement in principle on terms of a resolution" with the Justice Department.

Earlier settlement involving crashes in Indonesia and Ethiopia

In an earlier 2021 settlement with the Justice Department, Boeing had paid US$2.5 million (S$3.3 million) to avoid being prosecuted for fraud involving two fatal 737 Max crashes.

189 people had died in a crash in Indonesia on Oct. 29 , 2018 while 157 people died in another crash in Ethiopia on Mar. 10, 2019.

The two planes were operated by Indonesia's Lion Air and Ethiopian Airlines respectively.

The settlement included a fine as well as compensation intended for the victims' families and other airline customers.

Glenn Leon, head of the U.S. Justice Department criminal division’s fraud section, later accused Boeing of breaching the settlement "by failing to make promised changes to detect and prevent violations of federal anti-fraud laws".

Some victims' families against plea deal

The Justice Department will file the new written plea agreement with the court by Jul. 19.

Some lawyers of the victims' families said they were planning to request the judge to reject the deal, saying that it is simply a "slap on the wrist".

A Netflix series called "Downfall: The Case Against Boeing" was made in 2022, featuring interviews with the families and archival footage.

Top photo by Boeing