Boeing reaches $1.1B settlement, avoids trial over deadly 737 crashes
What's the story
Boeing has agreed to pay $1.1 billion to settle a US Department of Justice (DOJ) investigation into two deadly crashes involving its 737 Max aircraft that killed a total of 346 people.
The settlement, announced this week, would allow the aerospace giant to avoid a criminal fraud trial that was scheduled to begin on June 23.
However, the agreement is still pending approval from a federal judge.
Financial breakdown
Settlement includes criminal penalty of $487 million
The settlement comprises several financial elements.
Boeing will pay $444.5 million as compensation to the families of crash victims and another $455 million to improve its internal compliance, safety, and quality control systems.
The deal also includes a criminal penalty of $487.2 million, half of which was already paid in 2021.
Crash details
Two deadly crashes in 2018 and 2019
The deadly crashes involved Boeing's 737 Max jets in October 2018 and March 2019.
In 2018, a Lion Air flight crashed into the Java Sea just minutes after taking off from Jakarta, killing all 189 people on board.
The following year, an Ethiopian Airlines flight also crashed six minutes after take-off from Addis Ababa, killing all 157 passengers and crew members.
Both incidents were linked to faulty flight control systems on the aircraft.
Corporate responsibility
Boeing's statement on the matter
Boeing has publicly acknowledged the need for change in light of these incidents.
The company said, "We are deeply sorry for their losses, and remain committed to honoring their loved ones' memories by pressing forward with the broad and deep changes to our company."
If approved by the court, this settlement will spare Boeing from criminal prosecution.