Boeing is on the brink of becoming a convicted felon as part of a plea deal reached with the Justice Department. The deal stems from crashes in Indonesia and Ethiopia that claimed the lives of 346 people. Victims’ families are disappointed with the settlement, preferring to see Boeing face harsher consequences in a trial.
The guilty plea could jeopardize Boeing’s ability to secure government contracts, but the company may seek waivers. Despite the negative impact, the plea spares Boeing from a public trial that could further scrutinize its decisions leading up to the crashes. The planemaker has agreed to spend $455 million on safety and compliance programs over the next three years as part of the deal.
This resolution allows Boeing to move forward with a new CEO and its acquisition of Spirit AeroSystems. An independent monitor will oversee the company’s compliance, with annual progress reports made public during the three-year probationary period.
Ultimately, Boeing’s plea deal signifies a new chapter for the company as it works towards rebuilding trust and prioritizing safety in its operations.