Background on Boeing and the 737 MAX Scandal
Boeing, a leading American multinational corporation specializing in manufacturing commercial jetliners and defense, space, and security systems, has recently agreed with the European Union (EU) to put an end to lawsuits related to two fatal accidents involving its 737 MAX aircraft. The incidents occurred in October 2018 with Lion Air and March 2019 with Ethiopian Airlines, claiming a total of 346 lives.
Key Details of the Agreement
The preliminary agreement between Boeing and the U.S. government aims to dismiss criminal charges against Boeing for its conduct in the 737 MAX certification process, which was implicated in both accidents. The deal must still be approved by a judge and would cancel an upcoming federal trial scheduled to start on June 23 in Fort Worth, Texas.
Financial Aspects of the Agreement
Under the terms of this agreement, Boeing will pay $1.1 billion, which includes:
- $444.5 million to fund a compensation fund for the families of victims, who had already been accredited under an initial 2021 agreement.
- $455 million to strengthen Boeing’s internal safety, quality, and compliance programs.
$24.5 million in fines.
Allegations Against Boeing
The U.S. government accused Boeing of failing to disclose technical aspects of its anti-stall software, MCAS, to the Federal Aviation Administration (FAA), the civil aviation regulatory body. Both accidents were attributed to malfunctioning MCAS and insufficient pilot training in the program.
Reactions to the Proposed Agreement
Some family members of victims have criticized the proposed agreement, viewing it as a favor to Boeing.
Catherine Berther, who lost her daughter Camille in the Ethiopian Airlines accident, expressed her dismay: “I am completely shocked that the Department of Justice has decided not to prosecute Boeing despite all the evidence we have presented showing Boeing’s vileness and lies.”
Other family members have expressed their desire to close the case, acknowledging the ongoing pain associated with the legal proceedings:
“The pain resurfaces every time this case is discussed in court or other forums,” said one family member cited in the document.
More than 110 families of victims from the accidents have communicated their support for the agreement to the government, either specifically or in general terms, expressing approval for resolving the case before trial or not opposing the agreement.
