Later this week, the US Justice Department had issued a statement saying that the Seattle-based American multinational low-cost aircraft carrier manufacturer, Boeing Co., had agreed to a $2.5 billion settlement deal with the Justice Department which in effect would insulate the planemaker from criminal investigations on two plane crashes back in October 2018 and March 2019, which had killed a total of 346 people and led to a mass-grounding of its best-selling 737 MAX.
Besides, according to the financial terms of the settlement deal announced later this week, the Seattle planemaker which had lost its aviation industry crown to Europe’s flagship aircraft carrier maker Airbus SE in 2019 following a global-scale grounding of its 737 MAX jetliners, had agreed to pay off a $243.6 million in punitive measures, roughly $1.77 billion in compensations to airlines across the globe alongside a $500 million on crash-victim fund to avoid prosecution on fraud conspiracy charges linked to 737 MAX’s glitches in designs.
Boeing Co. to take $743.6 million charge against its Q4 earnings
On top of that, as part of a corporate plea bargain, Boeing Co. was quoted saying followed by the announcement that it would be taking a fiscal hit worth of as many as $743.6 million against its fourth quarter earnings for deferred prosecution agreement.
In actuality, back in the March of 2019, a Boeing Co. 737 MAX jetliner of Ethiopian Airlines, bound for Kenya, fell from the sky just six minutes after take-off, eventually leading to a mass-scale probe which had found a flurry of mismanagements on 737 MAX’s operations including its faulty autopilot system alongside a flawed design.
Aside from that, the investigation had also found that an ascend at a too steep angle would result in a glitch in the plane’s autopilot’s software, while the pilots’ handbook for 737 MAX had also failed to address the steps that they should follow, had there been such glitches.
Meanwhile, referring to Boeing Co.’s malevolent path to profit-taking through its best-selling 737 MAX while endangering thousands of lives across the globe, acting Assistant Attorney General David Burns said in a statement later this week, “The crashes 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 candour 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. ” Amid such garrulous debate on whether Boeing Co.’s 737 MAX should be recertified, 737 MAX had received an approval from FAA and EU authorities later last year.