Boeing to Pay $2.5b in Settlement Fees

Jan 9 , 2021

The Boeing Company agreed to pay over 2.5 billion dollars in settlement fees in relation to the two 737 Max plane crashes, which resulted in the deaths of 346 people in Indonesia and Ethiopia. The United States Justice Department, which had reached an agreement with the manufacturer, stated earlier last week that the multinational company will settle a charge of criminal conspiracy to defraud the United States Federal Aviation Administration. Around 1.7 billion dollars will be given to airlines that suffered losses from the international grounding of 737 Max aircraft. In addition, half a billion dollars will be forwarded as compensation to the families of those who lost their lives in the two crashes. Boeing admitted to criminal misconduct for hiding significant flaws in the 737 Max and misleading regulators. The criminal charges against it will be dropped in three years on the condition that the company complies with the terms of the settlement agreement.