Boeing is facing up to $487 million in fines as part of its anticipated guilty plea to a felony charge related to two fatal crashes of the 737 Max. Critics are calling the deal a 'slap on the wrist.' The plea agreement reveals the limits of corporate criminal charges, with Boeing admitting to defrauding the Federal Aviation Administration by concealing crucial information about a design flaw on the 737 Max during its certification process.
This design flaw was linked to crashes in 2018 and 2019 that resulted in the deaths of 346 people, leading to significant financial losses for the company. Despite the hefty fine, some argue that it is not proportionate to Boeing's past revenues and profits.
While the guilty plea did not satisfy family members of the crash victims, who criticized it as a 'sweetheart deal,' legal experts point out that Boeing's executives have largely escaped individual criminal charges. The plea agreement does not include immunity for any individual employees, but only one former Boeing employee faced criminal charges and was later acquitted.
Boeing's board has not shown a willingness to hold executives financially accountable, with CEO compensation even increasing in recent years. The company's potential penalty of being barred from federal government contracts, which could have severe consequences given its reliance on such contracts, is unlikely to materialize as waivers are expected to be granted.
Despite the controversy surrounding the plea agreement, Boeing's importance to the US economy and national security makes it unlikely that the government will sever ties with the company. Boeing remains a key player in the aerospace industry, supporting millions of jobs and playing a crucial role in air travel.
