Boeing has reached a controversial $1.1 billion settlement with U.S. prosecutors that could allow the aviation giant to avoid a criminal fraud trial linked to two catastrophic 737 Max crashes. The crashes in Indonesia in 2018 and Ethiopia in 2019 killed 346 people and were traced to faulty flight control systems.
The agreement, filed on Wednesday, includes $444.5 million in compensation to victims’ families and $455 million earmarked for safety and compliance upgrades. Boeing also agreed to pay a $487.2 million criminal penalty, though half of this was already paid under a 2021 settlement. If approved by a federal judge, the deal would prevent further criminal prosecution by the U.S. Department of Justice (DOJ).
However, families of the victims are denouncing the deal as a miscarriage of justice. Sanjiv Singh, a lawyer representing some of the families, called the agreement “repugnant” and a way for Boeing to “sidestep true criminal accountability.” Singh noted the visceral outrage felt by his clients, arguing that the financial terms of the deal pale in comparison to the gravity of Boeing’s conduct.
“If you look at that $1.1 billion, it’s actually like Boeing paying $10 to escape criminal liability,” Singh said. “It’s as if they got a misdemeanour ticket or a parking ticket.”
The crashes of Lion Air Flight 610 in October 2018 and Ethiopian Airlines Flight 302 in March 2019 were both linked to Boeing’s failure to disclose critical issues with its Maneuvering Characteristics Augmentation System (MCAS), a flight control feature added to the 737 Max.
In 2021, Boeing admitted to misleading federal regulators and settled earlier fraud charges, but families and their advocates argue that more meaningful accountability potentially through a criminal trial is essential.
Boeing says it is committed to making structural improvements and honoring victims’ memories, but the final decision now rests with a federal judge. Victims’ families will have a chance to formally object before a ruling is made.
