Boeing (BOE, Washington National) is reportedly looking to withdraw an earlier agreement to plead guilty in a criminal case that blamed the manufacturer for deceiving regulators before the 2018 and 2019 B737 MAX crashes, The Wall Street Journal reported on March 24 citing people familiar with the matter.
According to the newspaper, Boeing is seeking a more lenient treatment from the United States Department of Justice (DOJ) under the President Donald J. Trump administration, which is reportedly inclined to modify parts of the agreement and lightening the company’s punishment.
In July 2024, Boeing agreed to plead guilty to conspiring to defraud the United States government in relation to the two B737-8 accidents and pay a fine of up to USD243.6 million while avoiding a criminal trial.
The manufacturer also agreed to a government-appointed independent monitor for three years and to invest USD455 million in enhancing compliance and safety. The latter condition is currently under negotiation between Boeing and the Department of Justice, with the US company seeking to avoid appointing an external monitor. However, it will uphold its commitment to investing over USD400 million, according to the Wall Street Journal's insiders.
Boeing sought to avoid the plea deal through a 2021 deferred prosecution agreement (DPA), under which it committed to pay over USD2.5 billion in exchange for the suspension of the charges and the avoidance of a conviction. The deferral was due to expire on January 7, 2024, after which the DOJ would have formally dropped the charges. However, the Alaska Airlines incident on January 5, in which a door panel blew off a B737-9, disrupted the process, ultimately leading the DOJ to determine that Boeing had breached the terms of the 2021 DPA. As a result, the administration reinstated the charges in May 2024.
Boeing declined to comment on the matter, referring ch-aviation to the DOJ. The DOJ was not immediately available.
