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Boeing agrees to plead guilty over deadly 737 MAX crashes

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Boeing agrees to plead guilty over deadly 737 MAX crashes
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Tom Boon Content Manager | Simple Flying

Boeing will plead guilty to a criminal fraud charge related to the deadly 737 MAX 8 crashes that occurred in 2018 and 2019. This decision follows six months after the high-profile Alaska Airlines 737 MAX 9 door blowout incident, which again raised concerns about the aircraft's safety.

Prosecutors allege that two pilots at Boeing concealed critical information about the aircraft’s automated control system from the Federal Aviation Administration (FAA). This development contrasts sharply with Boeing's previous avoidance of prosecution through a 2021 settlement.

According to The Washington Post, Boeing agreed late Sunday to plead guilty to conspiring to deceive regulators in a case stemming from the crashes of Lion Air flight 610 (JT610) and Ethiopian Airlines flight 302 (ET302), which resulted in the deaths of 346 people. A spokesperson for Boeing confirmed this decision in a statement to Simple Flying: “We can confirm that we have reached an agreement in principle on terms of a resolution with the Justice Department, subject to the memorialization and approval of specific terms.”

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The US Department of Justice filed documents related to this agreement in federal court in Texas late Sunday night. The plea deal stipulates that Boeing would be fined $243.6 million, matching the amount paid in the 2021 settlement. Additionally, an independent compliance monitor will oversee Boeing’s compliance during a three-year probationary period. The manufacturer is also required to invest $455 million in compliance and safety programs.

The automated control system on the MAX caused uncontrollable dives while approaching, contributing significantly to both crashes. Prosecutors claim Boeing withheld information about this system to avoid repercussions.

A hearing has been scheduled for crash victims’ family members, allowing them to address Boeing’s board of directors before the court decides whether to accept the plea agreement. Approval from a federal judge is necessary for it to become effective.

Boeing's guilty plea will further damage its reputation by branding it as a felon and could complicate its ability to sell products to government entities. Last year, over 30% of Boeing’s nearly $80 billion revenue came from its defense, space, and security unit.

An official from the Justice Department stated on Sunday: “This criminal conviction demonstrates the department’s commitment to holding Boeing accountable for its misconduct," according to The Washington Post.

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