Boeing’s controversial plea deal to settle its criminal charges over the 2018 and 2019 737 MAX crashes could theoretically impact its numerous lucrative military contracts, but no one seems to seriously think it will. The U.S. military is not supposed to engage with companies that have criminal convictions, but the government can waive this restriction.
“DOD will assess the company’s remediation plans and agreement with the Department of Justice to make a determination as to what steps are necessary and appropriate to protect the federal government,” Air Force spokesman Maj. Gen Patrick Ryder told reporters. Canada is also reviewing its deal to buy P-8 Poseidons, but the process is continuing.
Boeing agreed to pay a $243.6 million fine and invest at least $455 million in “compliance and safety programs” after pleading guilty to conspiracy to defraud the U.S. To avoid criminal proceedings over the certification process for the MAX in 2021, Boeing promised to change its ways, but prosecutors alleged that the company ignored the terms of that deal. These accusations arose when a door plug blew off an Alaska Airlines MAX last January, just a few days before the expiry of the three-year probation period attached to the first plea deal agreement.
The first plea deal came after Boeing downplayed the impact of the newly installed Maneuvering Characteristics Augmentation System (MCAS) on the aircraft’s flight controls to prevent needing a separate type certificate for the model. MCAS was found to be a factor in crashes involving an Ethiopian Airlines MAX in 2019 and a Lion Air plane in 2018, resulting in 346 fatalities.
The families of victims from these crashes launched a strong attack against this latest agreement, calling it a “sweetheart deal” that Boeing will shrug off financially. They were advocating for a $24 billion fine against Boeing and stated that Sunday’s arrangement disrespected hundreds of victims and thousands of loved ones they left behind. Catherine Berthet, whose daughter Camille died in the Ethiopian crash, said that this plea deal shows “weakness and manifest contempt for the victims’ families and public interest.”
