New Delhi: Airplane maker Boeing on Sunday decided to plead guilty in a US administration investigation into the deaths caused by crashes of its 737 Max jets. The US-based aircraft builder will pay a $243.6 million fine to settle a US justice department probe into twin 737 Max jet crashes which led to the overall loss of 346 lives in 2018 and 2019 in Indonesia and Ethiopia, respectively.
All about Boeing plea agreement
Boeing has decided to plead guilty and settle the probe by paying a substantial amount and agreed to be designated as a convicted felon in relation to the 2 crashes cited above. While Boeing’s ability to secure US government contracts may be affected by the deal, the jet maker will avoid a long-drawn-out court trial and potentially pave the way for the comoany to acquire Spirit AeroSystems.
The plea bargain is related to the violation of a 2021 plea deal worth $2.5 billion with the US DoJ which enabled the jetmaker to avoid litigation. The company will spend $455 million over a 3-year period to ensure compliance and reinforce safety as part of the deal.
Boeing executives are required to meet with relatives of the crash victims as part of the deal, according to court filings. To be sure, Boeing will only pay half of a $487.2 million penalty since the company had paid $2.5 billion in 2021 in an original case related to another US DoJ probe.
How will Boeing’s guilty plea affect aggrieved families
Boeing’s guilty plea was not appreciated by crash victim’s families who wanted the jetmaker to undergo trial and pay a heftier penalty for the crashes. In June 2024, Boeing 737 Max crash victims’ families urged the US department of justice to make the jetmaker pay nearly $25 billion in fines.
To be sure, the agreement will become official only after a US court judge signs off on it after the US DoJ and Boeing file the deal in court on July 19, 2024. The deal does not shield Boeing from any prosecution related to the aeroplane door blowout on an Alaska Airlines flight in January.
Jet maker Boeing decided to plead guilty in a US probe into the deaths caused by crashes of the company’s 737 Max airplanes. Know how much will Boeing pay and what it means for 737 Max air crash victims. Biz News Business News – Personal Finance News, Share Market News, BSE/NSE News, Stock Exchange News Today
