Boeing agrees to pay over $1.1B (CAD 1.5B) to settle 737 Max crash claims
The U.S. Department of Justice (DOJ) has reached an agreement with Boeing that allows the airplane manufacturer to avoid legal proceedings related to two 737 Max crashes, which resulted in a total of 346 fatalities.
The Boeing 737 Max crashes—Lion Air in October 2018 and Ethiopian Airlines less than five months later—led to a global grounding of such aircraft for nearly two years.
The agreement with the Department of Justice means that Boeing will avoid a court trial, which the victims' families demanded. According to the U.S. administration, this is "a fair and just resolution that serves the public interest."
According to the agreement, as cited by CNN, Boeing commits to a payment or investment of over $1.1 billion (CAD 1.5 billion). The amount includes a $487.2 million (CAD 669 billion) fine (of which $243.6 million - CAD 335 million - has already been paid as part of a previous agreement).
The aircraft manufacturer will contribute $444.5 million (CAD 610.5 million) to a new fund for the crash victims and $445 million (CAD 611 million) to compliance, safety, and quality programs.
According to Reuters, two U.S. Democratic senators, Elizabeth Warren and Richard Blumenthal, have called on the Department of Justice to prosecute Boeing and reject the deal. In their view, the DOJ cannot sign an agreement that allows the company "to weasel its way out of accountability for its failed corporate culture, and for any illegal behavior that has resulted in deadly consequences."
