Boeing Nears Final Plea Deal Amid Safety Overhaul

The U.S. Justice Department announced substantial progress in finalizing a plea deal with Boeing, linked to the 737 MAX crashes. Boeing intends to plead guilty to defrauding the FAA and is set to pay a $243.6 million fine. The agreement includes a three-year safety improvement mandate and an independent compliance monitor.

The U.S. Justice Department announced on Thursday significant progress towards finalizing a plea agreement with Boeing, though the detailed filing is not expected before July 24. The aerospace giant previously agreed to plead guilty to a criminal fraud conspiracy charge, consenting to a $243.6 million fine.

This plea deal results from Boeing breaching a 2021 deferred prosecution agreement, having misrepresented key software for the 737 MAX to the Federal Aviation Administration. The software was linked to two fatal crashes that claimed 346 lives. As part of the new agreement, Boeing will bolster its safety and compliance programs with $455 million over three years.

Boeing's compliance will be overseen by an independent monitor, who will submit annual public reports. Additionally, the company's board will meet with the relatives of those killed in the crashes. U.S. District Judge Reed O'Connor termed Boeing's actions as 'the deadliest corporate crime in U.S. history.' Boeing also faces a separate criminal probe related to a 2021 Alaska Airlines incident.

(With inputs from agencies.)