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Because of the 737 Max disaster: Boeing fines billions

by News Desk
January 8, 2021
in World
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Because of the 737 Max disaster: Boeing fines billions
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The disaster surrounding the 737 Max crash plane is costing the aviation giant Boeing dearly. The US judicial authorities are raising serious allegations against the aircraft manufacturer.

Boeing has agreed to fines of more than 2.5 billion dollars to settle criminal proceedings because of fraud and conspiracy allegations in connection with the scandal, the US Department of Justice said in Washington.

“The tragic crashes of Lion Air Flight 610 and Ethiopian Airline Flight 302 exposed fraudulent and misleading behavior on the part of the employees of one of the world’s leading commercial aircraft manufacturers,” said Deputy Attorney General David P. Burns, according to CNBC from the Department of Justice’s criminal justice department in a notice.

A “culture of concealment”

The US judicial authorities accused the Airbus rival, among other things, of using misleading information to prevent the government from ensuring the safety of public air travel. The company was suspected of rushing to launch its best-selling 737 Max series and neglecting safety in favor of lower costs.

A committee of inquiry of the US Congress came to the conclusion in March 2020 that Boeing had a “culture of concealment”.

20 months start ban

The US Air Traffic Control Authority (FAA) pulled the crisis jet out of service in March 2019 after two crashes with a total of 346 dead. The main cause of the accidents was a faulty control program. Boeing actually wanted to fix the problems after the first crash. It wasn’t until November 2020, after more than a year and a half, that the FAA gave the green light again and lifted the start ban for the 737 Max.

After the billion-dollar fine became known, Boeing shares fell two percent in after-hours US trading.


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