According to prosecutors, reported by CNBC, Boeing “knowingly and willfully” conspired to defraud the United States by undermining the Federal Aviation Administration’s ability to evaluate the safety of the plane.
The Department of Justice says Boeing admitted that two of its 737 Max flight technical pilots “deceived” the FAA about the capabilities of a flight-control system on the planes, software that was later implicated in the two crashes.
$234.6 million of the over $2.5 billion settlement will go to criminal penalty payments, $500 million fund for crash victims family members, and $1.77 billion for its airline customers.
The tragic crashes of Lion Air Flight 610 and Ethiopian Airlines Flight 302 exposed fraudulent and deceptive conduct by employees of one of the world’s leading commercial airplane manufacturers. Boeing’s employees chose the path of profit over candor by concealing material information from the FAA concerning the operation of its 737 Max airplane and engaging in an effort to cover up their deception.
Acting Assistant Attorney General David P. Burns of the Justice Department’s Criminal Division
The agreement also didn’t implicate top executives there, saying the misconduct wasn’t pervasive nor were senior managers involved.
This is a substantial settlement of a very serious matter, and I firmly believe that entering into this resolution is the right thing for us to do — a step that appropriately acknowledges how we fell short of our values and expectations.
CEO Dave Calhoun in a message to Boeing employees
This settlement amounts to a slap on the wrist and is an insult to the 346 victims who died as a result of corporate greed. Not only is the dollar amount of the settlement a mere fraction of Boeing’s annual revenue, the settlement sidesteps any real accountability in terms of criminal charges.
Peter DeFazio. House Transportation and Infrastructure Committee Chairman
AUTHOR COMMENTARY
DeFazio is completely right. It is just another slap on the wrist for the big multinational corporation. Boeing, being the largest aircraft manufacturer in the world, with an estimated net worth of over $121 billion at the end of last year – is seemingly a drop in the bucket. Unfortunately, there will be no real restitution. No arrests of any kind, just a “small” fine.
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