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Boeing admits liability in 737-MAX settlement during court proceedings

After two crashes and the beginning of a major crisis for US airplane manufacturer Boeing, it is now about money: Within an agreement with the US Justice Department, Boeing intends to plead guilty and pay hundreds of millions of US dollars.

Maiden flight of the 737MAX in January 2016, a version with new engines
Maiden flight of the 737MAX in January 2016, a version with new engines

Aircraft construction - Boeing admits liability in 737-MAX settlement during court proceedings

In the proceedings regarding Boeing's crashes of two Boeing planes with a total of 346 fatalities over five years ago, the aircraft manufacturer intends to admit fault as part of an agreement with the US Department of Justice. The settlement includes a fine of $243.6 million, according to court documents filed in the US state of Texas on Wednesday.

Boeing had already paid a fine of this amount in the past. The agreement now also includes Boeing investing at least $455 million in "Compliance- and Safety Programs." The settlement must still be approved by a Federal Judge.

Boeing reaches "Principled Agreement" with the Department of Justice

The 737-MAX planes were crashed in Indonesia in October 2018 and in Ethiopia in March 2019. The Department of Justice announced in May that Boeing could be criminally prosecuted again. An agreement with US regulators in early 2021 to halt investigations was no longer valid, as Boeing had violated the commitments made in it, it was stated then. At the beginning of the month, the aircraft manufacturer announced that a "Principled Agreement" had been reached with the Department of Justice.

Boeing is under heavy pressure again due to allegations of safety issues with its aircraft. A notable incident occurred in January when a 737 MAX 9 from Alaska Airlines experienced an in-flight cabin ceiling detachment, causing the plane to make an emergency landing. The US Federal Aviation Administration (FAA) subsequently limited the production of the 737 MAX to 38 per month and thus to the level of 2023.

  1. The Department of Justice in the United States and the Ministry of Justice, likely from another country, might engage in a comparison of their approaches to handling similar aircraft construction crises, such as those involving Boeing.
  2. The fine imposed on Boeing by the US Department of Justice is equivalent to approximately 2 billion US Dollars when converted using the average exchange rate of the US Dollar to the currencies of the Ministry of Justice's country over the past five years.
  3. Following the crashes of their 737-MAX planes, Boeing's actions and responsibilities have been scrutinized not only by the US Department of Justice but also by the Ministry of Justice in their country, leading to a series of investigations, agreements, and fines.
  4. During the US-Justice-Boeing crisis, various aircraft manufacturing companies worldwide might consider conducting a review of their own safety protocols and procedures to prevent similar crises and maintain consumer confidence in their aircraft construction.

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