Boeing pleads guilty over 737 MAX crashes
The families of the victims of the two fatal 737 MAX crashes are demanding approximately 25 billion Dollars in compensation from Boeing. In a criminal proceeding, Boeing admitted to misleading the aviation safety authorities prior to the two fatal 737 MAX crashes. According to the US Justice Department, the aircraft manufacturer also agreed to pay a fine of 243.6 million Dollars. In addition, Boeing is required to spend 455 million Dollars over the next three years to improve its Compliance and Safety programs. Furthermore, Boeing must hire an independent observer for three years to oversee these improvements. The court must still approve the agreement.
The families of the 346 people who died in the flights five years ago criticized the deal, stating that it would allow Boeing to avoid taking full responsibility for the fatalities. By admitting fault, Boeing avoids a publicly demanded high-profile criminal trial, something the families of the victims have been pushing for.
However, Boeing's admission of guilt brings business challenges. Companies with criminal convictions can be suspended or excluded as contractors in the defense industry. It is expected that Boeing will apply for a waiver from this consequence. The company received defense contracts worth 22.8 billion Dollars in the previous year, according to federal data. As part of the settlement, Boeing's CEO also agreed to meet with the families of the victims.
Families demanded 25 billion
The agreement does not meet the demands of the victims' families. They had asked the prosecutor's office to impose a fine of approximately 25 billion Dollars, to prosecute Boeing without immunity in court, and to file additional charges against the company and its executive leadership, whom they hold responsible for the crashes. Employees of the Justice Department informed the families that they faced various legal hurdles, including statutes of limitations and lack of evidence, to prove wrongdoing beyond a reasonable doubt for alternative charges like manslaughter. An earlier attempt to prosecute a Boeing employee based on the allegations failed in court.
Boeing faces a three-year probation period under judicial supervision, during which additional penalties can be imposed if the conditions are not met. The decision was made public in a filing from the Justice Department to a federal court in Fort Worth, Texas. The prosecution has asked the court to schedule a hearing on the settlement in July.
The families are still unsatisfied with the compensation, as they initially sought a fine of 25 billion Dollars from Boeing and requested a criminal trial for the company and its executive leadership in relation to the Boeing 737 Max plane crashes. Despite the 243.6 million Dollar fine and the agreement to improve safety programs, the families believe that Boeing should be held fully accountable for the plane crash tragedies, involving the Boeing 737 Max aircraft.
