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By Reuters | January 8th 2021
Ethiopian Federal policemen stand at the scene of the Ethiopian Airlines Flight ET 302 plane crash, near the town of Bishoftu. [Reuters]
Boeing Co will pay more than Sh273.8 billion ($2.5 billion) in fines and compensation after reaching a settlement with the US Department of Justice over two plane crashes that killed a total of 346 people and led to the grounding of its 737 MAX jetliner.
The settlement, which allows Boeing to avoid prosecution, includes a fine of Sh26.7 ($243.6 million), compensation to airlines of Sh186 billion ($1.77 billion) and a Sh54.7 billion ($500 million) crash-victim fund over fraud conspiracy charges related to the plane’s flawed design.
Boeing on Thursday agreed to a $2.5 billion settlement with the Justice Department over charges that it engaged in a conspiracy to defraud the FAA over its 737 Max aircraft.
$2.5 BIL FINE: Boeing Charged with Criminal Conspiracy over 737 Max Fraud
Posted on 01/08/2021
The recertified Boeing 737 Max completed its first U.S. commercial flight in December 2020. The Boeing 737 Max was banned in March 2019 after the Lion Air Flight 610 crash in October 2018 in Indonesia that killed 189 people. This tragic accident was followed five months later by the Ethiopian Airlines Flight 302 crash that caused the death of all 157 people aboard. The Boeing Company has entered into an agreement with the U.S. Department of Justice to resolve a criminal charge related to a conspiracy to defraud the Federal Aviation Administration’s Aircraft Evaluation Group (FAA AEG) in connection with the FAA AEG’s evaluation of Boeing’s 737 MAX airplane.
| Credit: JASON REDMOND/AFP via Getty
Boeing has reached a settlement with the United States Department of Justice (DOJ) over a criminal charge related to a conspiracy to defraud the Federal Aviation Administration s Aircraft Evaluation Group, the department stated.
The charge is related to the evaluation of the safety of Boeing s controversial 737 MAX planes, which were involved in two deadly crashes between October 2018 and March 2019: Lion Air Flight 610 and Ethiopian Airlines Flight 302. Both crashes killed everyone on board, 189 and 157 people, respectively. Get push notifications with news, features and more. + Follow
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Boeing will pay more than $2.5 billion to settle a criminal charge related to the two 737 Max plane crashes in 2018 and 2019 that killed 346 people.
The Justice Department has announced that it has reached a deferred prosecution agreement with Boeing to resolve a charge of criminal conspiracy to defraud the FAA.
Boeing admits to criminal misconduct for misleading regulators about the safety of the troubled jetliner, but the airplane manufacturer is not pleading guilty to the charge. If Boeing complies with the terms of the settlement, in three years the government will drop the criminal charge. That s important for Boeing, a huge federal defense contractor, because a criminal conviction would prohibit the company from getting future government contacts.