Boeing agrees to plead guilty to avoid trial over 2018, 2019 crashes

Boeing has reached an agreement with the U.S. government to avoid an embarrassing trial with an uncertain outcome in the criminal case related to the crash of two 737 MAX 8s in 2018 and 2019, which killed 346 people.

“We have reached an agreement in principle on the terms of a resolution with the Department of Justice” (DOJ), the American aircraft manufacturer said in a statement released overnight from Sunday to Monday.

In a progress report filed Sunday with the federal court in Texas (south), the ministry confirmed this agreement in principle and committed to transmitting the final agreement to the judge no later than July 19.

The plea deal comes after the ministry ruled in mid-May that the group had violated an earlier agreement over plane crashes involving Indonesian airline Lion Air and Ethiopian Airlines.

This so-called deferred prosecution agreement (DPA) of January 7, 2021 required it in particular to improve its compliance and ethics program, with a three-year probationary period.

But the group has been accumulating a series of production and quality problems for many months. The latest episode: the American regulator (FAA) requested on Monday the “immediate” inspection of more than 2,600 aircraft of the 737 family in the United States for a problem with the attachment of the oxygen generators.

An in-flight incident on January 5 on an Alaska Airlines 737 MAX 9 proved to be the last straw, leading to a host of legal, political, regulatory and governance fallout.

– One count –

In reporting its findings to Texas Judge Reed O’Connor in mid-May, the department promised to report “no later than July 7” its decision on whether or not to pursue charges.

About ten days before that deadline, he had sent a plea offer to Boeing. It related to the only charge contained in the 2021 DPA.

According to documents filed late Sunday night with the court, the company has agreed to plead guilty to “knowingly, and with intent to commit fraud, conspiring and agreeing with others to commit fraud upon the United States” during the 737 MAX certification process.

Families of victims of a Boeing plane crash demonstrate in Washington on June 18, 2024 (AFP/OLIVIER DOULIERY)

The victims’ families reacted immediately in a statement, saying they were “very disappointed”.

They then filed a motion to contest the decision and requested a hearing with the judge.

This “generous agreement is based on misleading and offensive premises,” according to the lawyers’ request.

“The American justice system, which should be an example for the whole world, is in reality showing shameful complacency towards those who prioritise short-term profitability and image over the safety of (their) passengers,” lamented Catherine Berthet on Monday, who lost her daughter Camille in the Ethiopian Airlines crash.

“Once again, (…) the DOJ is ignoring the families by not mentioning any of the victims in the plea deal,” she stressed.

The ministry stated in its Sunday document that it intends to meet them soon.

– Immunity –

Following the two crashes, all 737 MAX aircraft were grounded for 20 months in the United States and around the world. Boeing admitted in April 2019 that its MCAS anti-stall software was partly responsible.

The Boeing 737 MAX assembly plant in Renton (northwestern United States) on June 25, 2024 (POOL/AFP/Archives/Jennifer Buchanan)

Under the 2021 settlement, Boeing paid $2.5 billion — including a $243.6 million fine — in exchange for immunity for its executives from criminal prosecution.

Only one person, a former Boeing test pilot, was prosecuted in the case. And acquitted.

The tentative agreement reached Sunday provides for an additional fine of $243.6 million and a minimum investment of $455 million in “compliance and security programs.”

Boeing, under close surveillance by the FAA, presented at the end of May a “comprehensive plan” to return to quality.

Relatives of victims of the Ethiopian Airlines Boeing 737 MAX crash in Washington on April 24, 2024 (AFP/Archives/SAUL LOEB)

In addition, an independent monitor appointed by the government for a three-year term – a new probationary period – will be responsible for supervising compliance with these commitments. This has been demanded by the families for years.

According to the agreement, the amount of compensation for the latter will be determined by the court and the aircraft manufacturer’s board of directors will have to meet with them.

At around 7:15 p.m. GMT, Boeing shares were up 0.44% on the New York Stock Exchange.

© 2024 AFP

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