Boeing finalizes 737 MAX guilty plea deal

Boeing has completed an agreement with the U.S. Justice Department to plead guilty to criminal conspiracy in connection with two fatal crashes of its 737 Max jetliners, according to a recent court filing, reported Xinhua

Boeing admitted it defrauded the Federal Aviation Administration (FAA) that evaluated the 737 Max "by dishonest means" and provided "incomplete and inaccurate information" to the group about the plane's flight-control software and how much training pilots would need for it, said the agreement filed in federal district court in Texas on Wednesday.

Boeing agreed to pay a criminal fine of 243.6 million U.S. dollars, in addition to the same amount in fines it paid under a deferred prosecution agreement reached with the Trump administration in 2021.

The company will also serve three years on probation. During that time, Boeing agreed to install an independent corporate monitor and spend at least 455 million dollars to bolster its compliance and safety programs, according to the filing.

Boeing issued a statement saying the company "will continue to work transparently with our regulators as we take significant actions across Boeing to further strengthen" those programs.

In 2021, the company avoided charges for concealing information from the FAA over changes to a system in the 737 Max jet that led to two crashes in 2018 and 2019, killing 346 people.

However, the company came under new security scrutiny after a fuselage panel covering an unused exit blew off a 737 Max during an Alaska Airlines flight in January.

The Justice Department said in May that Boeing violated the 2021 agreement by failing to make promised changes to detect and prevent violations of federal anti-fraud laws. Boeing agreed in principle on July 7 to plead guilty to the felony fraud charge instead of enduring a potentially lengthy public trial.

By agreeing to plead guilty, Boeing will avoid the distraction of a criminal trial when its finances are in disarray and its leadership is in limbo.

U.S. District Judge Reed O'Connor, who is overseeing the case, has not yet decided whether to accept Boeing's agreement with the Justice Department.

Relatives of some of the victims in the two crashes requested the judge to reject the plea deal, asking for a full trial and a harsher penalty for Boeing.

If O'Connor approves the deal, it would apply to the criminal charge stemming from the 737 Max crashes.

According to media reports, the judge will give lawyers for the families of the crash victims seven days to file legal motions opposing the plea deal. Boeing and the Justice Department will be permitted to file responses to the families' motions.