Boeing decided to plead guilty in a criminal case launched by the Department of Justice (DOJ) regarding the two fatal crashes with the 737 MAX 8 jet in 2018 and 2019 that killed 346 people.
As revealed by the government on Sunday, the company agreed to take the blame for criminal fraud conspiracy and will pay a fine of US$243.6 million to end the case.
The agreement will still need to be ratified by a federal judge and must be presented by Boeing and the DOJ by July 19.
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The decision to take the blame for the two accidents will expose Boeing to an unexpected situation as it will have difficulty participating in government tenders, although the agreement may include some exemptions in this regard.
On the other hand, Boeing will avoid a public trial, which could prolong and further damage its financial situation.
Door plug incident reopened the case
Boeing had reached an agreement with the DOJ in 2021 assuming that it would put in place several internal programs to avoid situations like those that led to the crash of Lion Air and Ethiopian Airlines jets.
The blowout of the door plug on an Alaska Airlines 737 MAX 9 in January, however, caused the Department of Justice to reopen the case because it considered that Boeing did not deliver on its promises.
The agreement includes a total fine of US$487.2 million, but Boeing will only pay half of the amount as the government will deduct payment of previous fines.
Additionally, the company agreed to invest US$455 million over the next three years to improve and integrate compliance and security programs.
During this time, Boeing will be on probation.
