Boeing Agrees to $244M Fine Over Fatal 737 Max Crashes
Boeing, which agreed in principle to plead guilty earlier this month over two fatal 737 Max crashes, filed a plea deal with the US Justice Department in federal court on Wednesday....
Facts
- Boeing, which agreed in principle to plead guilty earlier this month over two fatal 737 Max crashes, filed a plea deal with the US Justice Department in federal court on Wednesday.1
- In the final version of the plea deal filed in Texas, Boeing admitted conspiring to defraud a Federal Aviation Administration (FAA) group that approved the 737 Max jetliner.2
- The Justice Department alleged that Boeing let potentially hazardous activities be carried out at its factories and failed to maintain precise records.3
- The aviation company has agreed to pay a fine of $243.6M and invest at least $455M to boost its safety, quality, and compliance programs.4
- The deal is subject to approval by Judge Reed O'Connor, while attorneys for families of the 346 people who lost their lives in the 2018 and 2019 crashes are allowed to challenge the deal.5
- In 2021, Boeing escaped prosecution after it reached a $2.5B settlement with the Justice Department.6
Sources: 1Al Jazeera, 2Associated Press, 3Reuters, 4CNN, 5CNBC and 6PBS NewsHour.
Narratives
- Narrative A, as provided by CNBC. Boeing's plea deal over the 737 Max crashes could be a critical step towards its resurgence. By settling the federal probe, Boeing can avoid a prolonged and costly trial, letting it focus on rebuilding its reputation and regaining trust and stability.
- Narrative B, as provided by The Corporate Governance Institute. Boeing's plea deal neither addresses the deeper issues plaguing the company nor impacts its contracts. The company's culture of prioritizing speed over safety will continue to erode trust. This reputational damage overshadows any financial relief from the plea deal.
- Narrative C, as provided by The Economic Times. Boeing has been receiving preferential and sweetheart treatment for far too long. Judge Reed O'Connor must reject the plea deal. The real deal is when Boeing faces a full trial and a harsher penalty, and its current and former executives are criminally charged.
