Boeing Pleads Guilty to Charges of Defrauding the FAA

Boeing has pleaded guilty to charges of conspiring to defraud the Federal Aviation Administration after their 737 Max crashes, marking a huge blow to the company.

Boeing has always had a legacy of being trustworthy, but that all changed in the span of one year. As they launched their best-selling 737 Max, they did not reveal to buyers that they had added a crucial new system onto the aircraft, called MCAS, that controlled the pitch and stability of the plane. Due to this, when the system malfunctioned, it could make the plane nosedive at extremely high speeds. On October 29, 2018, Lion Air Flight 610 went crashing into the sea just 13 minutes after takeoff from Jakarta, killing all 189 people aboard. Boeing brushed it off as no cause for concern, but when Ethiopian Airlines Flight 302 nosedived straight into the ground at 700 mph on March 10, 2019, concerns over the 737 Max came up. The plane was grounded all over the world after extensive investigations, and Boeing landed in hot water.

Ever since the crashes, family and friends of the 346 people who died have demanded justice. Now, the US Department of Justice has fined Boeing $487 million and is forcing them to implement new safety rules in their manufacturing process. However, the families are still unhappy with the deal, as it is nothing compared to the $24.8 billion that they were hoping for. The DOJ has argued that the deal is very fair, though, as it forces Boeing to add more safety features that will provide more quality aircraft, and it also does not protect the company from being investigated for other incidents, such as Alaska Airlines Flight 1282 where a door fell off mid-flight.

Also, since Boeing has pleaded guilty, they will avoid a criminal trial for their actions. Family and friends of the victims of the crashes were demanding that Boeing be put on trial, allowing for full transparency and a thorough investigation. They also managed to avoid more severe penalties, such as a larger fine or losing their government contracts, which are crucial to their business.

However, Boeing has suffered massive losses already. They have published operating losses of $31.9 billion since the 737 Max was grounded, and have $47 billion in long-term debt. And to add to that, airplane maker Airbus is only getting more popular. They are also not out of hot water yet, as investigations over the Alaska Airlines incident have still not finished-- and those could include penalties as well.