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Boeing reaches USD2.5 billion settlement over 737 Max cover up
Plane maker Boeing reached a settlement with the US Justice Department in a criminal case linked to the 737 Max crashes and worldwide grounding.
Boeing agreed to pay more than $2.5 billion to settle a charge it misled the Federal Aviation Administration.
The DOJ said Boeing officials withheld information from the FAA about changes made to the MCAS software, which was a major factor in both crashes.
"Boeing’s 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," said David P. Burns, acting Assistant Attorney General of the DOJ’s criminal division.
"This resolution holds Boeing accountable for its employees’ criminal misconduct, addresses the financial impact to Boeing’s airline customers, and hopefully provides some measure of compensation to the crash-victims’ families and beneficiaries."
As part of the settlement, Boeing will set up a $500 million fund to compensate the families of those who died and pay a fine of nearly $244 million.
The remainder of the settlement will pay $1.77 billion to compensate Boeing’s airline customers which were unable to use the jets or take deliveries of new planes for nearly two years.
"This resolution is a serious reminder to all of us of how critical our obligation of transparency to regulators is, and the consequences that our company can face if any one of us falls short," said Boeing CEO, David Calhoun.
Written by Ray Montgomery, US Editor
TravelMole Editorial Team
Editor for TravelMole North America and Asia pacific regions. Ray is a highly experienced (15+ years) skilled journalist and editor predominantly in travel, hospitality and lifestyle working with a huge number of major market-leading brands. He has also cover in-depth news, interviews and features in general business, finance, tech and geopolitical issues for a select few major news outlets and publishers.
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