Quantcast

Boeing's plea deal raises questions about defense contracts

Boeing's plea deal raises questions about defense contracts
Policy

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.

Get the Newsletter
Sign-up to receive weekly round up of news from Sky Industry News
By submitting, you agree to our Privacy Policy and Terms of Service. By providing your phone number you are opting in and consenting to receive recurring SMS/MMS messages, including automated texts, to that number from our short code. Msg & data rates may apply. Reply HELP for help, STOP to end. SMS opt-in will not be sold, rented, or shared.

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."

Organizations Included in this History
More News

Passengers planning summer travel for 2026 can now book flights with Lufthansa Group Airlines, which has released its schedule featuring new destinations and increased frequencies.

Oct 28, 2025

Flying Food Group, Inc. has announced its Employees of the Month at its LAV facility.

Oct 28, 2025

Flying Food Group's San Francisco facility recently celebrated Hispanic Heritage Month with its employees.

Oct 28, 2025

Etihad Airways has announced the launch of a new route connecting Abu Dhabi and Addis Ababa.

Oct 27, 2025

United Airlines has unveiled its Summer 2026 schedule, which includes new flights from Newark to Bari, Split, Santiago de Compostela, and Glasgow, as well as from Newark to Seoul and Washington, D.C., to Reykjavik.

Oct 27, 2025

Ethiopian Airlines has announced a limited-time 20% discount on fares between Addis Ababa and Porto.

Oct 27, 2025