Boeing has reached an agreement to admit guilt in a fraud case to avoid standing trial in the United States over the incidents of two fatal crashes of the 737 Max aircraft.

As part of the settlement, Boeing will pay a $243.6 million fine and invest a minimum of $455 million in compliance and safety programs, according to a court filing by the US Department of Justice.

The plea deal requires Boeing to be subject to external monitoring of its safety and quality controls for a duration of three years.

The company stated that they have agreed to the terms of the resolution with the Justice Department pending the finalization and approval of specific conditions.

It is important to note that the plea agreement only addresses Boeing's responsibility for the 737 Max crashes in 2018 and 2019 and does not encompass other safety-related incidents involving the company, such as the Alaska Airlines flight 1282 incident.

Furthermore, the agreement solely pertains to the corporate entity of Boeing and not any past or present employees.

Boeing's admission of guilt could potentially jeopardize its government contracts, which contribute a significant portion of its revenues, as federal agencies might use a criminal conviction as grounds to reject a bid.

Nevertheless, Boeing may request exemptions to maintain business relations with the government, although it remains uncertain if crucial agencies like the US Department of Defense and NASA would be willing to waive such a conviction.

In a previous case in 2003, the US Air Force granted Boeing waivers to bid for contracts despite serious violations of federal laws.

Boeing's decision to plead guilty follows the Justice Department's assertion in May that the company breached a previous deferred prosecution agreement regarding the 737 Max crashes that claimed the lives of 346 individuals.

Under the terms of the 2021 settlement, prosecutors agreed not to press charges against Boeing for withholding information from regulators regarding flaws in the 737 Max following a payment of a $2.5 billion settlement, including a $243.6 million fine, and a commitment to comply with specific requirements for three years.

As part of the agreement, Boeing confessed to misinforming the Federal Aviation Administration about the Maneuvering Characteristics Augmentation System (MCAS), a flight control software associated with the accidents.

Legal representatives for some of the victims' families intend to challenge the plea agreement in a Texas court, claiming that it inadequately represents the impact of Boeing's actions which resulted in the loss of 346 lives.

“This lenient deal fails to acknowledge that Boeing's actions led to the deaths of 346 people,” remarked attorney Paul Cassell, who represents some of the affected families.

“Through a strategic agreement between Boeing and the DOJ, the severe consequences of Boeing's offense are being downplayed.”