Business

Boeing 737 Max Agrees To Settle With The Us For $2.6 Billion Dollars

Boeing 737 Max
pjs2005 from Hampshire, UK, rotated by the uploader, CC BY-SA 2.0, via Wikimedia Commons

The criminal charges pressed against Boeing for not revealing the safety of the design of their 737 Max planes will be dropped as the company agreed to settle for $2.6 Billion. The FAA alleged that the plane had defects and was the reason for the two crashes in Indonesia and Ethiopia. These crashes tarnished Boeing's reputation as a safe plane and the Boeing 737 Max was pulled off from flying. 


The company is charged with conspiracy to fraud as the officials claim that two officials from the company hid implicating information and disregarded the safety of their passengers. About 346 people are known to be the victims of the two crashes. 


Each plane has a software known as MCAS that controls the movement of the plane while taking off and flying. Any defect in the MCAS can cause the pilots to lose control of the plane and this is what resulted in the two crashes, claims FAA. What’s worse is that instead of reporting it to the authorities,  the company chose to hide it and risk the lives of more people. 


This incident has made many companies, airports and governments sever their ties with Boeing. The company has long fired the two employees directly responsible for making the decision to fraud the authorities. The Chief Executive was also given the boot and the company has since then paid thousands of dollars as fines, settlements and incurred a lot of losses. 


A part of the settlement of $2.6 Billion will be distributed among the victims of the crashes, authorities said. Boeing will also be paying $243 Million as a fine to the US FAA. However, the civil lawsuit pressed against the firm by the families of Ethiopian victims will not be taken back, stated the attorneys. ‘The settlement will mean nothing to us and we want to see justice served’ they said. 


However, it doesn’t seem like there will be major harm to the company. Boeing is one of the largest airplane manufacturers and employs a huge number of people in America. It contributes to the economy as well. The Trump administration was quite lenient with the company seeing its effect on the American economy and labor. However with Biden winning, the company might be in serious trouble, officials say. 

Molly

Molly