• By The Financial District

BOEING AGREES TO PAY $2.5B IN PENALTIES FOR ITS 737 MAX FIASCO

US aircraft manufacturer Boeing has agreed to pay more than $2.5 billion to settle criminal charges over allegations of fraud and conspiracy over its crisis-ridden 737 Max jet, the US Department of Justice said, Deutsche Presse-Agentur (dpa) reported.

Boeing had been suspected of rushing its best-selling 737 Max model series to market and neglecting safety, after two crashes that killed a total of 346 people. US Justice Department officials now accuse Boeing of using misleading statements to hinder the government's ability to ensure public air travel safety.


Boeing's employees put profit ahead of honesty and withheld information from the US Federal Aviation Administration David P. Burns of the Justice Department's criminal division said.


The airliner had been grounded in March 2019, following two major accidents, one in Indonesia in October 2018 and another in Ethiopia in March 2019. The main cause of the accidents was considered to be faulty control software that directed the jets towards the ground.


Pilots were unable to overpower the automatic settings. The fallout from the accidents led to the jet's worldwide grounding, the resignation of chief executive Dennis Muilenburg, a criminal probe, and Boeing's largest financial hit in its 104-year history.



WEEKLY FEATURE : JOSE MARI CHAN AND THE CHRISTMAS ANTHEM