Boeing’s recent announcement on Sunday, regarding its agreement to plead guilty to a federal criminal charge in a deal with the Justice Department, marks a significant milestone in the long-standing crisis surrounding the company’s 737 Max plane.
While this agreement may help Boeing resolve a federal case related to the two fatal crashes of the 737 Max in 2018 and 2019, it does not signify the end of the challenges the company faces. Other issues, including concerns about production quality highlighted by incidents like the January flight where a panel blew out of a Max jet, still loom over Boeing.
Here’s what you need to know about Boeing’s deal with federal prosecutors and the additional challenges the company is currently navigating.
What Comes Next?
Boeing had initially reached an agreement with the Justice Department in 2021 regarding the crashes, which allowed the company to avoid criminal charges. However, prosecutors later asserted that Boeing had violated the terms of the agreement, leading to a new deal that was tentatively agreed upon this past Sunday.
In the latest agreement, Boeing would plead guilty to a charge of conspiring to defraud the federal government. The terms also include the appointment of an independent monitor, a three-year probation period, and additional financial penalties, such as a $487.2 million fine. However, this arrangement is not yet finalized.
“While a plea agreement may sound conclusive, there are still further steps to be taken,” explained Kya M. Henley, a co-founder of Saint Park, a law firm specializing in white-collar crime. A formal agreement is expected to be submitted to a federal court soon for review by the presiding judge, potentially with opposition from the families of the crash victims.
Why Are Families Unhappy?
Many families impacted by the crashes have expressed dissatisfaction with the Justice Department’s handling of the case against Boeing. Despite the company pleading guilty to a criminal charge, families believe that true accountability for the deaths of 346 individuals has not been achieved.
Erin Applebaum, a lawyer representing families affected by the crashes, emphasized the need for meaningful change at Boeing to address the root causes of the problems. The families aim to sway the judge’s decision to reject the current deal, asserting that it fails to enhance public safety.
Who Will Monitor Boeing’s Compliance?
As part of its probation, Boeing will have an independent compliance monitor appointed by the Justice Department. This individual will oversee the company’s adherence to safety measures and submit annual reports to the government.
The monitor’s reports may lead to recommendations for changes in Boeing’s production processes or quality control. The identity of the monitor, likely an aviation expert, remains undisclosed, pending the final agreement’s details.
Other Consequences of Boeing’s Guilty Plea
Boeing’s guilty plea poses a potential risk to its government contracts, as a company convicted of certain felonies may lose these contracts without a waiver. Discussions with the Pentagon regarding the fate of these contracts are ongoing.
