Boeing, the U.S. aviation giant, has agreed to pay $1.1 billion to avoid prosecution for its role in two fatal 737 Max crashes. This historic settlement provides $444.5 million to fund the families of the victims of the crash. Further, it reserves $455 million to bolster compliance, safety and quality assurance initiatives in the corporation. If a federal judge signs off on this deferred prosecution agreement, Boeing will escape the high stakes criminal fraud trial that looms ahead. Their trial was set to commence on June 23.
Those horrible crashes were the accidents of two 737 Max jets going down under almost identical, yet different, circumstances. On March 10, 2019, Ethiopian Airlines flight ET302 departed from Addis Ababa. Unfortunately, just six minutes later the plane went down, killing all 157 people onboard in one of the deadliest aviation disasters in history. As we all remember, in October 2018 a Lion Air Flight crashed into the Java Sea just 13 minutes after taking off from Jakarta, Indonesia. All 189 passengers and crew members died in that horrible crash. Combined, these two incidents led to 346 fatalities.
Boeing’s decision to enter into this settlement reflects its commitment to addressing the systemic issues that contributed to these tragedies. The settlement agreement delivers important financial support to the families who must now rebuild their lives. This news further emphasizes the company’s impressive dedication to sharply raising its safety standards across the board. A company 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.”
Boeing, of course, has stated time and again that it is heartbroken over the loss suffered by the families of victims. In a statement, the company said, “We are deeply sorry for their losses, and remain committed to honoring their loved ones’ memories by pressing forward with the broad and deep changes to our company.”
This settlement coincides with the public scrutiny that Boeing is undergoing over their culture and safety practices. The crashes have raised questions about the company’s oversight and regulatory compliance, compelling Boeing to reassess its approach to safety and quality assurance in aircraft manufacturing.