Boeing Enters DPA in 737 MAX Probe, Agrees to Pay $2.5Bn

January 08, 2021 02:29 PM AEDT | By Kunal Sawhney

Boeing Enters DPA in 737 MAX Probe, Agrees to Pay $2.5Bn

Compensation to Victims’ Families

In the tragic crashes of Lion Air Flight 610 and Ethiopian Airlines Flight 302, a total of 346 people lost their lives. The world’s largest commercial plane manufacturer will now pay the penalty, including compensation to the families of crash victims, and airline customers.

The deferred prosecution agreement (DPA) executed by the Company concerning the criminal information filed in Northern Texas includes the USD 2.5 billion fine. The settlement covers a criminal money penalty of USD 243.0 million, compensation of USD 1.77 billion to airline customers, and USD 500 million for crash-victim beneficiaries fund.

Criminal Misconduct by Boeing Employees

Acting Assistant Attorney General of the United States Justice Department of Criminal Division, David P. Burns stated that the employees of the Company chose the path of profit over candour by hiding material information from the Federal Aviation Administration (FAA).

Boeing 737 MAX has been grounded since early March 2019 in the wake of flooding reports that the automated flight-control played a key part in the two deadly crashes that jolted the world.

Post the crashes, Boeing has redesigned an automated flight-control system that pushed the nose of 737 MAX down, receiving approval from the FAA in November last year. The automated flight-control system was previously based on a faulty reading from one sensor as compared to two sensors brought on the redesigned model.

Apart from that, the Company has now made it easier for pilots to manually override the automated flight-control system, making it less powerful.

Boeing 737 MAX Completes First Flight

Last week, American Airlines took the bird back in the air with the Boeing 737 MAX completing one flight from Miami to New York, marking the first commercial flying after the Ethiopian Airlines crash and almost 20 months of being grounded.

Also Read: The Very First Boeing 737 Max Commercial Flight Takes Off In Nearly Two Years!

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