Boeing has reached an agreement with the US Department of Justice over the two 737 MAX crashes in 2018 and 2019, which would see the planemaker admit to a conviction of fraud.
In 2021, Boeing entered into a deferred agreement with the DOJ to resolve a criminal charge of defrauding the United States in connection with the FAA’s evaluation and certification of the 737 MAX aircraft. The crashes on Lion Air Flight 610 and Ethiopian Airlines Flight 302 killed 346 people.
As of Sunday, 7 July 2024, an agreement has been reached. Boeing will pay a US $243.6 million fine, adding to the fine it already paid. It must also invest a minimum of $455 million in compliance and safety programmes, whilst compensation for the families of the victims is still to be determined by the court.
This settlement is nowhere near the original 2021 deal, in which Boeing vowed to pay US$2.5 billion under the deal’s original terms. In the original 2021 deal, a $500m victims fund was also outlined, which is yet to be disclosed for 2024.
As reported by The Washington Post, a statement from the DOJ released on Sunday said that: “This criminal conviction demonstrates the department’s commitment to holding Boeing accountable for its misconduct.”
This latest announcement further damages Boeing’s reputation. A criminal conviction would affect its ability to secure government contracts. It also recently saw sanctions from the NTSB over releasing information to the public over the Alaska Airlines flight investigation.
