Boeing settles legal claims for $1.1 billion following 737 MAX tragedies

US aerospace giant Boeing Co. has agreed to pay $1.1 billion to settle legal claims related to the two deadly crashes involving its 737 MAX aircraft in 2018 and 2019, which together claimed 346 lives.

The settlement with the US Department of Justice includes a $455 million commitment from Boeing to enhance its compliance, safety, and quality programmes. This information was disclosed in a recent filing with the US Securities and Exchange Commission (SEC), Caliber.Az reports via foreign media.

Boeing will also provide $444.5 million in compensation to the families of the victims. Additionally, the company faces a $487.2 million fine, half of which had already been paid in 2021. As part of the agreement, Boeing admitted to conspiring to obstruct the Federal Aviation Administration’s (FAA) Aircraft Evaluation Division, which oversees aircraft safety certification. The settlement allows Boeing to avoid a high-profile trial that was scheduled to begin on June 23. In October 2018, all 189 people on a Lion Air flight died after the aircraft crashed into the Java Sea 13 minutes after take-off from Jakarta, Indonesia.  

In March 2019, an Ethiopian Airlines flight crashed six minutes after take-off from the Ethiopian capital of Addis Ababa. All 157 people on-board were killed. Both crashes were linked to faulty flight control systems.   In 2021, Boeing agreed to settle US fraud charges and admitted deception over hiding information from safety officials about the design of its 737 Max planes.   Relatives of the victims will have the chance to appeal this latest deal when it is considered by a federal judge.

By Naila Huseynova