Boeing will pay $2.5 billion in settlement for criminal charges of deceiving safety regulators in connection with the development of its 737 Max aircraft.<\/p>\n
The US Department of Justice in a statement<\/a> on Thursday (January 7) announced that it has entered into an agreement with Boeing to resolve a criminal charge related to a conspiracy to defraud the Federal Aviation Administration\u2019s Aircraft Evaluation Group when it evaluated the company\u2019s 737 MAX airplane.<\/p>\n The Boeing 737 Max was involved in two fatal crashes in 2018 and 2019 that resulted to deaths of hundreds of people.<\/p>\n The US aircraft manufacturer entered into a deferred prosecution agreement for the one count of conspiracy to defraud safety regulators.<\/p>\n Under the terms of the DPA, Boeing will pay over $2.5 billion, composed of a criminal monetary penalty of $243.6 million, compensation payments to Boeing\u2019s 737 MAX airline customers of $1.77 billion, and the establishment of a $500 million crash-victim beneficiaries fund to compensate the heirs, relatives, and legal beneficiaries of the 346 passengers who died in the Boeing 737 MAX crashes of Lion Air Flight 610 and Ethiopian Airlines Flight 302.<\/p>\n \u201cThe tragic crashes of Lion Air Flight 610 and Ethiopian Airlines Flight 302 exposed fraudulent and deceptive conduct by employees of one of the world\u2019s leading commercial airplane manufacturers,\u201d said Acting Assistant Attorney General David P. Burns of the Justice Department\u2019s Criminal Division.<\/p><\/blockquote>\n<\/blockquote>\n \u201cBoeing\u2019s employees chose the path of profit over candor by concealing material information from the FAA concerning the operation of its 737 Max airplane and engaging in an effort to cover up their deception. This resolution holds Boeing accountable for its employees\u2019 criminal misconduct, addresses the financial impact to Boeing\u2019s airline customers, and hopefully provides some measure of compensation to the crash-victims\u2019 families and beneficiaries,\u201d he said.<\/p>\n See Related Story:<\/strong> US FAA Clears Boeing\u2019s 737 Max to Fly Again after Fatal Crashes<\/a><\/p>\n According to the DOJ, Boeing\u2014through two of its 737 MAX Flight Technical Pilots\u2014deceived the FAA AEG about an important aircraft part called the Maneuvering Characteristics Augmentation System (MCAS) that impacted the flight control system of the Boeing 737 MAX.<\/p>\n \u201cBecause of their deception, a key document published by the FAA AEG lacked information about MCAS, and in turn, airplane manuals and pilot-training materials for U.S.-based airlines lacked information about MCAS,\u201d the DOJ statement stated.<\/p><\/blockquote>\n<\/blockquote>\n Boeing began developing and marketing the 737 MAX in or around June 2011. Before any U.S.-based airline could operate the new 737 MAX, U.S. regulations required the FAA to evaluate and approve the airplane for commercial use.<\/p>\n\n
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