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Boeing |
[Alpha Biz= Reporter Kim Minyoung] Boeing has decided to plead guilty to the series of 737 Max airplane crashes that occurred between 2018 and 2019, as reported by the Wall Street Journal on July 7th (local time).
Prosecutors have required Boeing to pay a criminal fine of $244 million (approximately 336.6 billion Korean Won) and to spend an additional $455 million (approximately 627.9 billion Korean Won) over the next three years to improve regulatory compliance and safety programs. Boeing will also be subject to court-appointed monitor oversight for three years to verify these improvements.
By admitting guilt, Boeing faces potential repercussions such as suspension or prohibition from government contracts, including those from the U.S. Department of Defense and NASA. However, the risk of public exposure of the company's actions related to the Max airplane crashes during the trial process has been somewhat alleviated.
Additionally, Boeing is likely to seek exemptions from the regulations prohibiting government contract awards. According to sources, Boeing is currently in discussions with the U.S. Department of Defense regarding this matter. Boeing stated, "We have reached a principled agreement with the Department of Justice regarding the terms of resolution."
Previously, Boeing had reached an agreement with the U.S. Department of Justice to pay $2.5 billion (approximately 3.45 trillion Korean Won) in fines and compensation to avoid criminal prosecution after 346 people died in the crashes of 737 Max 8 aircraft in 2018 and 2019. However, just before the end of the deferred prosecution agreement earlier this year in January, another crash involving an Alaska Airlines Boeing 737 Max 9 prompted the U.S. Department of Justice to reconsider resuming criminal prosecution against Boeing.
AlphaBIZ Kim Minyoung(kimmy@alphabiz.co.kr)
