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Boeing to plead guilty to fraud charge over 737 MAX crashes

Boeing will plead guilty to a criminal charge of conspiracy, over two 737 MAX crashes in Indonesia and Ethiopia in 2018 and 2019.

By: Yu Le

Published on: 9 July 2024, 9.54am


Boeing has been under scrutiny after a door plug detached from an Alaska Airlines 737 Max 9. Photo: Boeing


US planemaker Boeing has agreed to plead guilty to a criminal charge of conspiracy to defraud the United States government over two 737 MAX 8 crashes in Indonesia and Ethiopia, said the United States Department of Justice.  


This guilty plea comes after Boeing faced intense criticism and scrutiny from the public over the quality and safety management at Boeing after a door plug detached from an Alaska Airlines Boeing 737 MAX 9 aircraft in January. It also deals another severe blow to Boeing’s already tarnished reputation.


The charge involves Boeing deliberately lying to the Federal Aviation Administration (FAA) about the MCAS software, or Manoeuvring Characteristics Augmentation System found in the 737MAX, which had a huge role in the two fatal 737MAX crashes.


Despite the USD243.6 million fines Boeing faces for the criminal charge, families of the victims involved in the incident are still not content with Boeing’s punishment, many of whom are demanding Boeing pay nearly USD25 billion for the damages caused. Paul Cassell, a lawyer representing many of the families, has called this agreement a “sweetheart deal” and that it was “clearly not in the public interest”.


As part of the agreement, Boeing’s board of directors will meet with the victims' families. Boeing will also be under the oversight of an independent monitor appointed by the government for 3 years. The USD243.6 million fine issued in the agreement covers the money saved by Boeing by using MCAS. Additionally, Boeing has also agreed to use 455 million dollars on its compliance and safety programs over the next three years.


Within 5 months in 2018 and 2019, 2 Boeing 737MAX aircraft crashed in Indonesia and Ethiopia due to the flawed MCAS software. The software received erroneous readings for the Angle of Attack (AOA), making the software repeatedly push the noses of the aircraft down. As a result, the FAA grounded 737MAX aircraft for 20 months. In January 2021, the Department of Justice and Boeing agreed to delay any prosecution of the crashes. A probationary period was introduced and Boeing had agreed to work on the issues regarding quality and transparency over its processes. However, just days before the period was about to end, the Alaska Airlines incident ensued, leading the Department of Justice to continue investigations into Boeing.

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