Boeing Co. is discussing a potential path forward with the US Defense Department to preserve its government contract business after the company agreed to plead guilty to a criminal charge tied to two fatal crashes of its 737 Max jet, according to a person familiar with the discussions.
A Pentagon spokesperson separately said on Monday that the department will assess the plea agreement and related matters to “make a determination as to what steps are necessary and appropriate to protect the federal government.”
The talks come after Boeing’s guilty plea risked calling into question the viability of such contracts. Boeing’s defense, space and security division accounted for about a third of the company’s total revenue last year.
The government contracts are more important than ever as it relies on its defense division to counteract plunging revenue at its commercial airplane business. T
