Feedback

Boeing Co to pay $1.77 billion compensation to families of victims of 737 MAX crashes

Source : 112 Ukraine

The company will establish the aid-fund for victims in the crashes for $500 million for payment of compensation to heirs, relatives and legal beneficiaries of deceased passengers
13:30, 8 January 2021

112 Agency

Boeing Co will pay over $2.5 billion within the settlement of criminal proceedings on the accusation of criminal conspiracy tied with crashes of 737 MAX planes as Reuters reported.

The settlement of the criminal proceeding includes the fine in the sum of $243.6 million and compensation payments in the sum of $1.77 billion to clients of Boeing 737 MAX. Moreover, the company will also establish the aid-fund for victims in the crashes for $500 million for payment of compensation to heirs, relatives and legal beneficiaries of deceased passengers.

Related: Iran gives Ukraine draft report on causes of PS752 plane crash

Boeing Co also stated it expects to carry additional costs in the sum of $743.6 million in the fourth quarter within the settlement.

The crashes “exposed fraudulent and deceptive conduct by employees of one of the world’s leading commercial airplane manufacturers,” acting Assistant Attorney General David Burns said.

Boeing was accused of the criminal conspiracy to fraud the U.S. authorities, particularly, the Federal Aviation Administration.

Related: An-26 plane crash: Court takes another suspect into custody

The company recognized that two employees of 737 MAX decided to fraud FAA concerning the safety system MCAS that was tied with both crashed in Indonesia and Ethiopia.

The families of victims of Boeing 737 crashes will continue to sue the air constructor after the settlement.

The company faced about 140 lawsuits from the families of the victims in Ethiopia and it has settled the majority of the lawsuits tied wit Lion Air crash in Indonesia.

346 people died as a result of crashes 737 MAX planes in Indonesia and Ethiopia during five months in 2018 and 2019.

Related: Helicopter with MFO peacekeepers crashes near Sharm El-Sheikh

The U.S. Congress adopted the law reforming the procedures of certification of planes by FAA.

In March 2019, the launch of Boeing 737 MAX was stopped. The ban for flights was lifted in November 2020 when Boeing has increased the safety and improved the preparation of the pilots.

Topics:
Система Orphus

If you find an error, highlight the desired text and press Ctrl + Enter, to tell about it

Comments
see more