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Image source,Reuters
The 737Max will be operational again in the United States in December 2020.
Boeing of the United States agreed to pay 2.5 billion US dollars (approximately 1.8 billion pounds) to resolve a criminal investigation by the Department of Justice and admitted that its employees have defrauded aviation regulators for safety issues related to the 737 aircraft Max.
The United States Department of Justice stated that the company’s prior choice of “profit rather than honesty” hampered oversight of the aircraft involved in the two fatal accidents. Approximately US $ 500 million will be compensated to the families of approximately 346 people killed in the plane crash.
Boeing said the agreement recognizes how the company “failed” in the past. The company’s CEO, David Calhoun, said: “I strongly believe that accepting this agreement is the right thing to do for us. This also recognizes that we have not lived up to our values and expectations in the past.”
“This resolution is a serious reminder to all of us of the importance of transparency obligations to regulators, and confirms the consequences the company will face if any of us fail to meet these expectations.”
“Fraud and cover-up”
The US Department of Justice stated that Boeing officials had previously withheld information about changes to the automatic flight control system (MCAS) and, after investigation, the system was linked to two accidents in Indonesia and Ethiopia. in 2018 and 2019.
The information changes of the MCAS system caused the pilots to lack detailed and relevant information in the training process. The system changed the aircraft’s driving instructions based on faulty data, forcing the aircraft to submerge shortly after take-off, leading to a subsequent accident.
The US Department of Justice also said Boeing had not cooperated with investigators for six months.
Image source,Reuters
After the Boeing 737 Max was banned by the US Aviation Administration in September 2019, the 737 Max from several airlines parked on the runway at Grant County International Airport in Washington state. (Profile picture)
Acting Assistant Attorney General David Burns said: “The tragic accidents at Lion Air 610 and Ethiopian Airlines 302 exposed one of the world’s leading commercial aircraft manufacturers to fraud and deceptive behavior by its employees.”
“By hiding important information from the Federal Aviation Administration (FAA) about the operation of its 737 Max aircraft and trying to hide their deception, Boeing employees chose the path of profit rather than candor.”
According to the terms of the agreement, Boeing was charged with one count of conspiracy to defraud the United States, but if the company continues to comply with the agreement, the complaint will be withdrawn after three years.
Most of the settlement amount ($ 1.77 billion) will be paid to the company’s airline customers who were affected by the aircraft grounding after the accident, some of which have already been paid. . The company also agreed to pay a fine of $ 243.6 million.
However, lawyers for the victims of the Ethiopian Airlines crash stated that the settlement will not stop their civil lawsuits against Boeing. The victims’ team of attorneys issued a statement saying: “The allegations in this settlement are just the tip of the iceberg of Boeing’s misconduct: Boeing paid billions of dollars to avoid criminal liability to prevent the family members will litigate them in court. “
They added that the FAA “should not allow the 737 Max to take off again until it has resolved all defects in the aircraft and has undergone a transparent and independent safety review.” Boeing said concerns about the 737 Max have been resolved and it will be launched in 2020. Re-service in the United States in December 2015.
analysis
BBC Business Correspondent Theo Leggett (Theo Leggett)
The accusation against Boeing is that its employees used “misleading statements” – half the facts and “underreporting” to mislead the regulators responsible for keeping American aviation safe.
In this case, the company can be said to have escaped the French Open with relative ease. Avoid being sued, although much of the solution goes through compensation to other airlines, in any case, you can eventually pay considerable compensation.
Without question, the company hopes to use this deal to set a stop loss point for one of the most traumatic events in aviation history.
However, when the 737 Max reappears in the sky, the inspections by Boeing and the FAA are unlikely to stop there.
Critics, including relatives of the victims, lawyers and politicians, insist that the problems with the aircraft remain serious and will continue to search for answers.
