Boeing has agreed to pay at least $243.6m (£189m) after finalising a guilty plea deal over 737 Max crashes that killed 346 people.
The planemaker has admitted conspiring to defraud the Federal Aviation Administration, after the US government found it knowingly made false representations about key software for the aircraft which was linked to fatal crashes in 2018 and 2019.
In 2021, prosecutors had charged Boeing with conspiracy to defraud regulators, but agreed not to prosecute if it paid fines and agreed to improve safety and compliance.
However, just two days before that agreement expired in May this year, the Justice Department found Boeing had breached its obligations by allowing potentially risky work at its factories, and failing to ensure record keeping was accurate or complete.
The finding came after a door plug blasted away from a 737 Max on an Alaska Airlines flight in January, exposing continuing safety and quality issues.
A separate criminal investigation has been launched by the Justice Department into the Alaska Airlines flight, which was missing four key bolts. Boeing has said no paperwork detailing the removal of the bolts was completed.
In the case over the false representations, Boeing agreed in principle earlier this month to plead guilty to conspiracy to defraud.
On Wednesday, it confirmed it had filed a detailed plea agreement with the Justice Department.
A spokesperson from Boeing said: “Boeing and the Justice Department have filed a detailed plea agreement in federal court, which is subject to court approval.
“We will continue to work transparently with our regulators as we take significant actions across Boeing to further strengthen our safety, quality and compliance programs.”
The Justice Department’s court filing states that Boeing failed to ensure employees documented the removal of parts during aeroplane manufacturing.
The company was accused of false stamping, where some employees committed “misconduct” by claiming some tests had been completed.
Boeing also did not ensure work on aeroplanes was conducted in the proper sequence, the Justice Department said.
Both air accidents in 2018 and 2019 were linked to faulty flight control systems, leaving a total of 346 people dead.
In October 2018, all 189 people on a Lion Air flight were killed when the aircraft crashed into the Java Sea 13 minutes after take-off from Jakarta, Indonesia
In March 2019, an Ethiopian Airlines flight crashed six minutes after take-off from Ethiopia’s capital Addis Ababa. All 157 on board died.
As part of the plea deal, Boeing agreed to pay a total fine of $487.2m (£378.2m) and the Justice Department recommended the court credit its previous 2021 payment of $243.6m against that – leaving another $243.6m to be paid.
Boeing will also spend $455m (£353.1) over three years to improve safety and compliance, 75 per cent more than previously planned.
Families of the crash victims can object within a week before the judge decides on the deal and determines if Boeing owes restitution to relatives.
The court filing added that Boeing’s board must meet the families within four months of sentencing, and an independent monitor will oversee the company’s compliance for three years, extendable by a year if necessary.
Boeing has been approached for comment.