346 fatalities - Manufacturer admits fraud after plane crashes - heavy fines
In the proceedings regarding the crashes of two Boeing planes with a total of 346 fatalities over five years ago, Boeing reportedly made a deal with the US Department of Justice according to their own statements. A "principled agreement" had been reached, Boeing declared on Monday. According to the court filings submitted in the US state of Texas, Boeing was willing to admit guilt in the "conspiracy to defraud the United States" during the certification of 737 MAX aircraft. This would allow Boeing to avoid further investigations by the ministry.
In the crashes in October 2018 and March 2019, 346 people had lost their lives. At the time, Boeing had 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 Department of Justice determined in May that Boeing had violated the terms of the previous deal.
New investigations against Boeing due to near-crash in January
A trigger for this was the near-crash in January, during which a fuselage fragment of a nearly new Boeing plane detached 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 a lucky coincidence.
The cause of the crashes in 2018 and 2019 was 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 the two planes were unable to recover them. Planes of this type were grounded nearly for two years until the error in the software was corrected.
Boeing was then indicted for fraud in a criminal trial due to Boeing employees misrepresenting to US regulators that special training for the software was unnecessary during the certification process.
According to the court documents made public on late Sunday, Boeing, as part of the plea agreement, is supposed to invest at least 455 million dollars in Compliance- and Safety-Programs. In addition, a fine of 243.6 million dollars is to be paid. Furthermore, an independent auditor is to submit an annual progress report. Boeing will receive a probationary period of three years. The agreement will only take effect if it is approved by the court in Texas, where the case is being heard.
Families of the victims demand harsher penalties
Even before such a turn of events became apparent in the past few weeks, families of the crash victims had 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 had previously apologized to the victims' families a few weeks ago and emphasized that the company took responsibility for the crashes.
- The agreement between Boeing and the US Department of Justice, as revealed in court filings in Texas, involves Boeing admitting guilt for a conspiracy to defraud the United States during the certification of Boeing 737 MAX aircraft.
- In the aftermath of the near-crash in January, new investigations against Boeing were initiated due to allegations of fraud involving Boeing employees misrepresenting the need for special software training to US regulators during the certification process.
- As part of the plea agreement reached with the Ministry of Justice, Boeing is required to invest at least $455 million in Compliance- and Safety-Programs, pay a fine of $243.6 million, and submit to annual progress reports from an independent auditor for a period of three years.
- Families of the victims from the crashes in 2018 and 2019 have demanded harsher penalties, including a billion-dollar fine, and plan to meet with Boeing's Board of Directors, expressing their dissatisfaction with the proposed settlement.
