Reportedly, Boeing (BA) is reportedly pay more than $2.5B in penalties, including nearly $1.8 billion in compensation for airlines, to resolve charges for misleading U.S. aviation authorities with wrong information related to its 737 Max aircraft, informed the Justice Department. The investigation focused on if Boeing employees misled the Federal Aviation Administration over pilot-training materials and manuals used by U.S. airlines.
Boeing to pay an amount of “over $2.5 billion,” including a criminal monetary penalty of $243.6 million, a $1.77 billion compensation payments to Boeing’s 737 Max airline customers, and to set-up $500 million crash-victim beneficiaries fund to compensate the legal beneficiaries and family of the 346 passengers who lost their lives in the crashes involving Boeing 737 Max jets.
Both the deadly crashes in less than five months apart are believed to be connected to a faulty anti-stall system, resulting in the worldwide grounding of the aircraft in March 2019. The plane’s first commercial flights resumed last month.
“The tragic crashes of Lion Air Flight 610 and Ethiopian Airlines Flight 302 exposed fraudulent and deceptive conduct by employees of one of the world’s leading commercial airplane manufacturers,” stated David P. Burns, the Justice Department’s criminal division acting assistant attorney general.
“Boeing’s employees chose the path of profit over candor by concealing material information from the FAA concerning the operation of its 737 Max airplane and engaging in an effort to cover up their deception. This resolution holds Boeing accountable for its employees’ criminal misconduct, addresses the financial impact to Boeing’s airline customers, and hopefully provides some measure of compensation to the crash victims’ families and beneficiaries,” he added.
Dow 30 component Boeing (NYSE: BA) is the world’s largest aerospace company and leading manufacturer of commercial jetliners and defense, space, and security systems. To learn more about Boeing (BA) and to track its ongoing progress please visit the Vista Partners Boeing (BA) Coverage Page.
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