737 Max crashes Boeing reaches tentative deal to avoid prosecution

It would let the firm dodge being branded a convicted felon, but be a blow to victims' kin

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NEW YORK/WASHINGTON - Boeing has reached a tentative non-prosecution agreement with the US Department of Justice (DOJ) in a fraud case stemming from two fatal 737 Max plane crashes that killed 346 people, people familiar with the matter said.

The agreement would forestall a June 23 trial date that the plane-maker faces on a charge that it misled US regulators about a crucial flight control system on the 737 Max, its strongest-selling jet.

The agreement would allow Boeing to avoid being branded a convicted felon but would be a blow to families who lost relatives in the crashes and had pressed prosecutors to take the company to trial.

A felony conviction could have threatened Boeing's ability to secure lucrative government contracts with the likes of the US Defence Department and US space agency NASA, although it could have sought waivers.

Boeing had no immediate comment, while the DOJ declined to comment.

Boeing in July had agreed to plead guilty to a criminal fraud conspiracy charge after the two fatal 737 Max crashes in Indonesia and Ethiopia in 2018 and 2019, respectively, and to pay a fine of up to US$487.2 million (S$633 million).