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The millionaire amount was revealed Boeing must pay as a fine both for the fatal accidents of Lion Air and Ethiopian and for the certification process of the 737 MAX.
Boeing announced that it signed an agreement with the United States Department of Justice (DOJ), resolving the Department's investigation regarding the aircraft certification process Boeing 737 MAX by the Federal Aviation Administration (FAA). As part of Boeing's resolution with the DOJ, The Department agreed to defer prosecution of the company, provided that Boeing complies with the obligations set forth in a three-year deferred prosecution agreement, after which the charge will be dismissed.
According to the agreement, Boeing will pay a fine of $243,6 millions and will provide $500 million in additional compensation to the families of those lost in the Lion Air and Ethiopian Airlines accidents. The agreement also includes a commitment to provide $1,77 billion to airline customers from Boeing as part of the company's ongoing efforts to compensate those customers for financial losses resulting from the grounding of the 737 MAX.
The settlement is based on the conduct of two former Boeing employees and their intentional failure to inform the Aircraft Evaluation Group (AEG) from the FAA, the group within the FAA responsible for making pilot training determinations, about changes to the Maneuvering Characteristics Enhancement System (MCAS).
As a result of this behavior, the agreement states that the FAA AEG was not fully informed about the expanded operational range of the MCAS when it made its training determinations for the MAX. While it focuses on the conduct of these two former employees, The agreement recognizes that other employees of Boeing informed other officials and organizations within the FAA about the expanded operational range of MCAS in connection with the certification of the 737 MAX.
David L.. Calhoun, Chairman and CEO of Boeing, he said in a note to employees:
“I firmly believe that signing this resolution is the right thing for us, a step that adequately recognizes how we fall short of our values and expectations. “This resolution is a sobering reminder to all of us of how critical our obligation of transparency to regulators is and the consequences our company may face if any of us fail to meet those expectations.”.
Boeing's deal announcement was accompanied by an 8-K filing with the Securities and Exchange Commission, which reflected that the company had taken a charge of $743,6 million to earnings in connection with its commitments under the agreement.
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It seems to me that it is the least that could be done to compensate for the loss of human lives of the passengers of the Diana flights and the losses that this caused due to the downtime of the B737MAX. . Let's hope that the plane operators have no more qualms in the short term and that Boeing emerges stronger from this hard lesson that it has had to face..
Strongly agree, very hard lesson that we all hope will not be repeated again.