Boeing to Plead Guilty to Fraud Charge Over 737 Max Crashes
The Facts
Boeing has agreed to plead guilty to conspiracy to defraud the US over two plane crashes that killed 346 travelers, the US Dept. of Justice (DOJ) said in a filing late on Sunday.
As part of the plea deal — which a federal judge in Texas must approve before it comes into effect — Boeing will pay a $243.6M fine and invest at least $455M on safety and compliance over the next three years.
The Spin
Narrative A
While it could hurt Boeing's lucrative contracts with the US government, this agreement will enable the firm to move beyond these incidents without the embarrassment of a public trial. This is the best thing for the company's clean-up process as it's looking to appoint a new chief executive officer and is seeking to acquire Spirit AeroSystems.
Narrative B
This is a deeply inappropriate deal that fails to acknowledge that 346 people died as a result of Boeing's dubious safety and quality standards. It also allows the company to shield the public from the extent of those failures by avoiding a public trial. The judge assessing the deal must uphold the principles of justice and accountability.
