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Boeing admits fraud before Max crashes

The two crashes of a Boeing 737 Max with hundreds of fatalities are still haunting the US aircraft manufacturer years later. Now there is a new penalty and a government watchdog.

After two crashes of 737 Max aircraft with 346 fatalities, Boeing escaped prosecution with...
After two crashes of 737 Max aircraft with 346 fatalities, Boeing escaped prosecution with promises. Now new penalties are due because the company failed to implement the requirements at the time.

Aircraft manufacturer in crisis - Boeing admits fraud before Max crashes

Boeing admits to defrauding the US government to avoid a lawsuit regarding two fatal crashes of 737 Max aircraft. This information comes from a document of the US Department of Justice for the responsible federal court in Texas. The consequences are a new penalty of at least 455 million dollars and a government overseer for the US aircraft manufacturer.

The accidents in October 2018 and March 2019 resulted in the deaths of 346 people. At that time, Boeing avoided prosecution in part by promising to implement a Compliance- and Ethics-Program. The company also paid a fine of 243.6 million dollars. The Justice Department concluded in May that Boeing violated the terms of the previous deal.

New investigations due to near-disaster in January

A trigger for this was the near-accident in January, during which a fuselage fragment from a nearly new Boeing plane fell off in cruise flight. In this incident, no one was injured. However, this was also due to the fact that the seats next to the hole in the fuselage were empty by chance.

The crashes in 2018 and 2019 were caused by a plane software that was supposed to support pilots but interfered more strongly than expected in the control. It directed the planes towards the ground, and the pilots of both planes were unable to regain control. Planes of this type were grounded nearly two years before the software error was fixed.

Boeing was charged with fraud in a subsequent trial because Boeing employees, during the certification of the type by US authorities, declared special training for the software to be unnecessary.

According to the court records released late on Sunday, Boeing, as part of the plea deal, is supposed to invest at least 455 million dollars in Compliance- and Safety-Programs. A further fine of 243.6 million dollars is also due. The agreement will only take effect if it is approved by the court in Texas, where the case is being heard.

Relatives demand harsher penalties

Even before such a turn of events became apparent in the past few weeks, relatives of the crash victims sharply criticized the prospect of a new agreement with Boeing and demanded a billion-dollar fine. They are to meet with the Boeing Board of Directors. Boeing CEO Dave Calhoun apologized to the families a few weeks ago and emphasized that the company takes responsibility for the crashes.

The Ministry of Justice in the United States is involved in the ongoing court case against Boeing due to the defrauding incident. The Justice Department's document revealed Boeing's intention to deceive the government to avoid a lawsuit related to the 737 Max crashes in October 2018 and March 2019. These accidents resulted in a tragic loss of 346 lives. The Software used in Boeing 737 Max aircraft was found to interfere excessively with the control system, directing the planes towards the ground, causing the pilots' inability to regain control. The construction of these aircraft was under scrutiny, with accusations of fraud against Boeing emerging in a subsequent trial. The company's employees were accused of declaring unnecessary special training for the software during certification by US authorities. The justice system is imposing penalties, including a fine of at least 455 million dollars and the implementation of Compliance- and Safety-Programs, on Boeing. The consequences of the crashes have also led to calls for harsher penalties from the families of the victims, who are scheduled to meet with Boeing's Board of Directors.

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