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Boeing admitted it had deceived regulators about its Maneuvering Characteristics Augmentation System (MCAS), a flight stabilization software program that was linked to both crashes. Lawyers representing the families of victims slammed the deal, calling it an attempt at hiding Boeing’s crimes.
The U.S. Justice Department says Boeing has agreed to plead guilty to criminal fraud over two deadly crashes of its 737 Max jet. The plea agreement announced recently relates to Boeing’s culpability in the 737 Max crashes in 2018 and 2019, in Indonesia and Ethiopia respectively. The two disasters killed 346 people. Under the plea deal, the embattled aircraft maker would pay a fine of US$ 243.6 million.
The deal is subject to approval by a federal judge. Boeing admitted it had deceived regulators about its Maneuvering Characteristics Augmentation System (MCAS), a flight stabilization software program that was linked to both crashes. Lawyers representing the families of victims slammed the deal, calling it an attempt at hiding Boeing’s crimes.
The American aerospace giant has calculated that admitting to a crime is better than fighting the charge and enduring a long public trial. The plea deal is not yet a sure thing, However, relatives of the deceased in both accidents are against the plea and said that they would approach a federal judge in Texas to throw out the agreement, which they say is too lenient considering the lives that were lost. They want a trial, a huge fine imposed, and criminal proceedings against Boeing management.
The Justice Department says a conviction for fraud will hold Boeing accountable for “misstatements” it made to regulators who certified the 737 Max in 2017. The crashes took place less than five months apart in 2018 and 2019.
The company still faces investigations into the blowout of a panel from an Alaska Airlines Max in January, increased oversight by the Federal Aviation Administration, and accusations from current and former employees about poor workmanship and retaliation against whistleblowers.
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Boeing’s business has never fully recovered from the crashes. After the renewed scrutiny that followed the Alaska Airlines incident, the company failed to book any new orders for the Max in April and May. It has fallen even farther behind European rival Airbus in the production and deliveries of new planes, which means less revenue is coming in. All of this is happening while Boeing looks for a new CEO to replace David Calhoun, who says he will step down at the end of the year.
