Aircraft maker Boeing has reached a deal with the Department of Justice (DOJ) that enables it to escape prosecution for a fraud charge related to two 737 Max crashes, which killed 346 people. This agreement will allow Boeing — which is a major military contractor and top U.S. exporter to avoid prosecution, and to not be labelled a felon.
Under the agreement, Boeing will have to “pay or invest” more than $1.1 billion, the DOJ said in its filing in federal court in Texas on Friday.
That amount includes a $487.2 million criminal fine, though $243.6 million it already paid in an earlier agreement would be credited. It also includes $444.5 million for a new fund for crash victims, and $445 million more on compliance, safety and quality programs.
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Boeing has previously 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 that we have made to strengthen our safety system and culture.”
The company also said in a statement to AirlineGeeks, “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 resolution also provides for substantial additional compensation for the families of those lost in the Lion Air Flight 610 and Ethiopian Airlines Flight 302 accidents.”
The air crashes in concern were two separate but identical incidents that killed a total of 346 people. In October 2018, all 189 people on a Lion Air flight died after the aircraft crashed into the Java Sea 13 minutes after take-off from Jakarta, Indonesia. In March 2019, an Ethiopian Airlines flight crashed six minutes after take-off from the Ethiopian capital of Addis Ababa. All 157 people on-board were killed. Both crashes were linked to faulty flight control systems, and the 727 Max planes were grounded for two years following the incidents.
Boeing agreed to settle U.S. fraud charges, and admitted deception over hiding information from safety officials about the design of its 737 Max planes in 2021.
Sanjiv Singh, counsel for family members of some of the victims of the crash in Indonesia criticized the deal saying it allows the firm to “sidestep true criminal accountability.” He also said the agreement provoked “visceral outrage” from his clients and believes the current payout is insufficient. “If you look at that $1.1bn, it’s actually like Boeing paying $10 to escape criminal liability. It’s as if they got a misdemeanor ticket or a parking ticket.”