Boeing Avoids 737 MAX Crash Prosecution & “Felon” Label

The US Department of Justice has announced that it has reached a deal with Boeing, which will allow the aircraft manufacturer to avoid prosecution over two deadly 737 MAX 8 crashes, which ultimately claimed 346 lives.

May 24, 2025 - 15:25

Boeing Avoids 737 MAX Crash Prosecution & “Felon” Label

The US Department of Justice has announced that it has reached a deal with Boeing, which will allow the aircraft manufacturer to avoid prosecution over two deadly 737 MAX 8 crashes, which ultimately claimed 346 lives.

Boeing & DOJ reach $1.1 billion non-prosecution agreement

Boeing and the DOJ have reached a non-prosecution agreement, which allows Boeing to avoid being labeled a felon. If finalized, this deal means that Boeing won’t face trial next month, as he been urged by families of many crash victims.

The DOJ has stated that it intends to file a motion to dismiss the case, once the agreement in principle is finalized. As the DOJ explains, it “is the Government’s judgment that the Agreement is a fair and just resolution that serves the public interest,” and that it “guarantees further accountability and substantial benefits from Boeing immediately, while avoiding the uncertainty and litigation risk presented by proceeding to trial.”

With this agreement, Boeing will have to “pay or invest” over $1.1 billion, including a $487.2 million criminal fine, though $243.6 million of that has already been paid in earlier agreements, and would be credited. It also includes a new $444.5 million fund for families of crash victims, and $445 million more on compliance, safety, and quality programs.

This is all in relation to the late 2018 Lion Air crash and early 2019 Ethiopian Airlines crash, which ultimately caused Boeing’s best selling narrow body jet to be grounded for nearly two years. While Boeing has been trying to put these crashes behind it, as you’d expect, families of crash victims have been trying to hold the airline accountable. In 2022, we saw a former chief pilot charged with fraud in relation to the plane’s development, but he was ultimately acquitted.

The DOJ claims that relatives of over 110 crash victims support the non-prosecution agreement, or “support the Department’s efforts to resolve the case pre-trial more generally.” Meanwhile other families aren’t so happy with the agreement, claiming that “this kind of non-prosecution deal is unprecedented and obviously wrong for the deadliest corporate crime in U.S. history.”

In 2021, Boeing already reached a settlement related to the accidents, whereby Boeing agreed to pay a $2.51 billion fine to avoid prosecution, including a $243.6 million criminal penalty, a $500 million fund for the families of crash victims, and $1.77 billion for airline customers.

However, in May 2024, the DOJ announced that Boeing had breached a deal to avoid prosecution, by not preventing violations of federal anti-fraud laws. Specifically, Boeing was accused of “failing to design, implement, and enforce a compliance and ethics program to prevent and detect violations of the US fraud laws throughout its operations.”

Boeing is avoiding prosecution related to the 737 MAX

I’m not sure what to make of this agreement

I’m pretty sure most of us agree that Boeing has acted unreasonably and unethically with relation to the design of the 737 MAX, and putting profits over safety. On the surface, of course I’d love to see Boeing prosecuted, and held accountable as much as possible.

At the same time, I think this gets at the challenge with accountability for large corporations — what does it really mean when you charge a huge corporation with a felony, and who does it really punish? For example, the DOJ tried to bring charges against the chief pilot, who probably had the most knowledge of what was going on, but he was acquitted.

The issue is that criminal negligence requires intent, and it’s questionable whether that could be proven. So I can see merit to trying to come to an agreement that at least benefits the families as much as possible, even if it might not feel like as much of a win as being prosecuted for a felony.

Some crash victim families aren’t happy with this outcome

Bottom line

Boeing will be avoiding prosecution in relation to two 737 MAX crashes. While Boeing was supposed to go to trial next month, that’s no longer expected to happen, thanks to a new $1.1 billion agreement. Of course I can understand how this resolution doesn’t feel like justice. At the same time, you don’t want the company to go to trial, only to then be acquitted.

What do you make of this outcome for Boeing?