The Strategist

Boeing to pay $2.5bn in 737 MAX crash case

01/08/2021 - 03:44

Boeing has agreed to pay $2.5bn in the two 737 MAX plane crashes that killed 346 people, Reuters reports. In doing so, the aircraft maker will settle charges of conspiracy to defraud the United States brought earlier by the Justice Department.

The agreement includes a $243.6 million criminal monetary penalty, $1.77 billion in compensation payments to Boeing 737 MAX customers and the establishment of a $500 million fund to compensate the heirs, relatives and representatives of the plane crash victims.

Boeing admitted in court documents that two of its 737 MAX technical pilots misled the Federal Aviation Administration about a key safety system for the plane related to both crashes. Boeing chief executive David Calhoun said the agreement "appropriately demonstrates how we have failed to live up to our own values and expectations".

Operation of the Boeing 737 Max was suspended in March 2019, following two crashes involving the aircraft. The crisis surrounding the 737 Max has led to numerous cancellations of orders for these airliners and multi-billion dollar losses for Boeing. 

At the end of June 2020, US authorities allowed the Boeing 737 Max to begin test flights necessary for them to be allowed to resume flying. On 29 December, the Boeing 737 Max resumed commercial operations in the USA.