The United States government and aircraft manufacturer Boeing have reached an agreement to drop the criminal charges related to the two fatal 737 MAX crashes in 2018 and 2019, a document revealed on Friday.
For Boeing, this agreement is crucial as it avoids a trial that was set to commence on 23 June, though it still requires approval from a federal judge.
As part of the agreement, Boeing acknowledges having attempted to “hinder and obstruct” the work of the US regulator, the FAA.
The company will also pay $1.1 billion, including $444.5 million for a compensation fund for the victims’ relatives. This amount was part of a settlement reached in 2021. The remaining sum includes a $244 million fine and $455 million designated to enhance Boeing’s internal safety, quality, and compliance programmes.
The two fatal Boeing 737 MAX crashes in Indonesia (2018) and Ethiopia (2019) resulted in the deaths of 346 people. The aircraft were subsequently grounded for nearly twenty months for safety reasons.
In January 2021, Boeing agreed to a $2.5 billion settlement with US authorities, admitting to fraud by withholding crucial information from regulators. However, due to alleged non-compliance with the terms, US authorities had decided to challenge the initial agreement.
A new agreement was rejected on formal grounds by a federal judge in early December. The judge applied pressure in March by announcing that the trial would proceed at the end of June.
In the newly added document on Friday, Washington indicated prior contact with the victims’ families. Relatives and lawyers representing “more than 110 victims” have since expressed agreement or neutrality regarding the settlement. However, some families voiced dissatisfaction following the announcement on Friday.
