Title: Boeing Reaches $2.5 Billion 737 Max Settlement with U.S. - The New York Times
Headings: Boeing Reaches $2.5 Billion Settlement With U.S. Over 737 Max
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Boeing Reaches $2.5 Billion Settlement With U.S. Over 737 Max
The company agreed to a deferred prosecution agreement with the Justice Department.
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Content: As part of Thursday’s agreement, Boeing will establish a $500 million fund to compensate the families of those who died and pay a fine of nearly $244 million. The company will also pay $1.77 billion in compensation to its airline customers who were unable to use or take deliveries of the Max, which remains grounded in some parts of the world. American Airlines last week became the first U.S. carrier to resume flights aboard the plane after the F.A.A. lifted its grounding in November, provided Boeing or airlines make certain modifications to the plane. “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,” David Calhoun, who was appointed Boeing’s chief executive in January 2020, said in a note to employees. “ This resolution is a serious reminder to all of us of how critical our obligation of transparency to regulators is, and the consequences that our company can face if any one of us falls short of those expectations.” Last January, Boeing said it expected the plane’s grounding to cost the company more than $18 billion. But that was before the coronavirus pandemic brought travel to a standstill, throwing the airline industry into disarray. In 2020, Boeing lost more than 1,000 aircraft orders, mostly for the Max, though more than 4,000 remain. The Max is a mainstay of the global passenger airline fleet, used for domestic flights or short international trips. As a single-aisle jet, it is the kind of smaller plane airlines have increasingly preferred to use in recent years.