The Boeing Company
The Boeing Company
The settlement agreement is being implemented in order to avoid prosecution of any kind. As part of the agreement, Boeing will pay a fine of $243.6 million to the DoJ, as well as $1.77 billion to compensate damages to airlines, and a $500 million crash-victim fund that have to do with the plane's defective aircraft design.
The settlement agreement is being implemented in order to avoid prosecution of any kind. As part of the agreement, Boeing will pay a fine of $243.6 million to the DoJ, as well as $1.77 billion to compensate damages to airlines, and a $500 million crash-victim fund that have to do with the plane's defective aircraft design.
Boeing stated that it would take a $743.6 million charge against its fourth quarter 2020 earnings to reflect the agreement, according to Reuters.
Boeing stated that it would take a $743.6 million charge against its fourth quarter 2020 earnings to reflect the agreement, according to Reuters.
The crashes, according to Assistant Attorney General David Burns, "exposed fraudulent and deceptive conduct by employees of one of the world's leading commercial airplane manufacturers." Burns claimed that there was a great deal of deception is occurring within Boeing during the investigation into the cause of the crashes, alleging that Boeing did not wish to reveal certain pieces of information regarding their planes.
The crashes, according to Assistant Attorney General David Burns, "exposed fraudulent and deceptive conduct by employees of one of the world's leading commercial airplane manufacturers." Burns claimed that there was a great deal of deception is occurring within Boeing during the investigation into the cause of the crashes, alleging that Boeing did not wish to reveal certain pieces of information regarding their planes.
Burns stated that Boeing chose "profit over candor" and concealed material information from the U.S. Federal Aviation Administration (F.A.A.) that concerned the operation of its 737 Max, alleging the company went to great efforts to cover up their deception.
Burns stated that Boeing chose "profit over candor" and concealed material information from the U.S. Federal Aviation Administration (F.A.A.) that concerned the operation of its 737 Max, alleging the company went to great efforts to cover up their deception.
Grounded in March 2019, the Boeing 737 Max was cleared to fly again by the F.A.A. in November 2020, with Boeing instituting many safety improvements as well as new levels of pilot training. F.A.A. Administrator Steve Dickson stated in the regulatory agency's announcement of the aircraft's return to service that the FAA's decision followed a comprehensive and methodical safety review process that took 20 months to complete.
Grounded in March 2019, the Boeing 737 Max was cleared to fly again by the F.A.A. in November 2020, with Boeing instituting many safety improvements as well as new levels of pilot training. F.A.A. Administrator Steve Dickson stated in the regulatory agency's announcement of the aircraft's return to service that the FAA's decision followed a comprehensive and methodical safety review process that took 20 months to complete.
The crashes have cost Boeing about $20 billion.
The 737 Max crisis has not been good to the company, and the coronavirus pandemic made its year even worse. Boeing had its worst year for net aircraft sales on record in 2020, logging gross orders for only 184 aircrafts and reporting more than 650 order cancellations, according to CNBC.
The crashes have cost Boeing about $20 billion.
With this agreement to settle the U.S. government's investigation into the company's aircraft, hopefully Boeing can start to move beyond the fatal crashes towards a more profitable future.
The 737 Max crisis has not been good to the company, and the coronavirus pandemic made its year even worse. Boeing had its worst year for net aircraft sales on record in 2020, logging gross orders for only 184 aircrafts and reporting more than 650 order cancellations, according to CNBC.
With this agreement to settle the U.S. government's investigation into the company's aircraft, hopefully Boeing can start to move beyond the fatal crashes towards a more profitable future.
