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Home Read a ride Aerospace

Boeing admits guilt in fatal crashes, agrees to pay $243m fine

David Ijaseun by David Ijaseun
July 10, 2024
in Aerospace
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Boeing admits guilt in fatal crashes, agrees to pay $243m fine
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Boeing world’s largest aerospace company, has agreed to plead guilty to a criminal fraud conspiracy charge. It made this closure while addressing the US Justice Department’s investigation into two fatal 737 MAX crashes. This plea will mark Boeing as a convicted felon and include a substantial $243.6 million fine.

The charges stem from the tragic crashes in Indonesia and Ethiopia between 2018 and 2019, which claimed the lives of 346 individuals. The victims’ families have long demanded accountability from Boeing, pressing for criminal prosecution.

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This plea deal, pending approval from a federal judge, could impact Boeing’s future government contracts with entities such as the US Defense Department and NASA. However, Boeing may seek waivers to maintain these critical relationships.

Avoiding a protracted trial, Boeing aims to move forward under new leadership set to take over later this year. The company also plans a significant safety and compliance overhaul, committing at least $455 million over the next three years. A third-party monitor will be appointed to oversee Boeing’s compliance efforts and will publicly report annual progress.

The Justice Department’s deal, offered to Boeing on June 30, presented a choice: accept the plea or face a trial for conspiring to defraud the Federal Aviation Administration (FAA). The deal has faced criticism from some families of the victims, who have labeled it a “sweetheart deal” and vow to challenge it in court.

Boeing’s troubles have been compounded by ongoing safety concerns. A separate incident in January involving an in-flight blowout highlighted persistent quality issues. This new plea acknowledges Boeing’s false representations to the FAA regarding a key software feature, the Maneuvering Characteristics Augmentation System (MCAS), linked to the crashes.

As part of the settlement, Boeing’s board will meet with the families of those who perished in the crashes, providing a platform for the families’ voices to be heard directly by the company’s leadership.

Read more on Virgin Australia Boeing 737 diverted after bird strike causes engine fire

Tags: aviationBoeingTop premium

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