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Boeing to pay over $1 billion to avoid criminal trial in 737 Max crash cases

The agreement, revealed this week, would enable the aerospace giant to sidestep the criminal fraud trial that was set to commence on 23 June, subject to approval by a federal judge.

'Boeing is committed to complying with its obligations under this resolution,' a spokesperson said. (AP Photo)

Boeing has agreed to pay $1.1 billion to settle a US Department of Justice (DOJ) investigation into two deadly crashes involving its 737 Max aircraft that killed a total of 346 people. The settlement, announced this week, would allow the aerospace giant to avoid a criminal fraud trial that was scheduled to begin on 23 June, pending approval from a federal judge.

A Boeing spokesperson stated, “Boeing is committed to complying with its obligations under this resolution, which include a substantial additional fine and commitments to further institutional improvements and investments.”

The deal includes several financial components:

$444.5 million in compensation to the families of crash victims
$455 million to enhance Boeing’s internal compliance, safety, and quality control systems
$487.2 million in criminal penalties, half of which was already paid in 2021

The 737 Max disasters

The settlement follows two similar and devastating crashes involving Boeing’s 737 Max jets:

In October 2018, a Lion Air flight plunged into the Java Sea just 13 minutes after taking off from Jakarta, killing all 189 people aboard.
In March 2019, an Ethiopian Airlines flight crashed six minutes after take-off from Addis Ababa, claiming the lives of all 157 passengers and crew.

Also Read: | Boeing pleads guilty in US fraud conspiracy case: what this means, what comes next

Both incidents were linked to faulty flight control systems, specifically the aircraft’s Maneuvering Characteristics Augmentation System (MCAS), which repeatedly forced the planes into nose-dives.

Boeing has publicly acknowledged the need for change. “We are deeply sorry for their losses, and remain committed to honouring their loved ones’ memories by pressing forward with the broad and deep changes to our company,” the company said in a statement.

If the court approves the settlement, Boeing will avoid criminal prosecution.

(With inputs from BBC)

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