737 Max: US-Boeing deal over crashes ‘repugnant’

A lawyer for 16 families of the victims of a fatal Boeing 737 Max crash, has told the BBC that a deal between the aviation giant and the US Justice Department (DOJ) is “morally repugnant”.

The firm said it agreed to pay $1.1bn (£811.5m) to avoid prosecution over two crashes that killed 346 people, in a filing on Wednesday.

Sanjiv Singh, counsel for family members of some of the victims of a 2018 crash in Indonesia, says the deal allows the firm to “sidestep true criminal accountability”.

Boeing has previously said: “We are deeply sorry for their losses, and remain committed to honouring their loved ones’ memories by pressing forward with the broad and deep changes to our company”.

The deal includes the company paying $444.5m to families of crash victims. It will also put $455m towards improving its compliance, safety and quality programmes.

Under the deal, Boeing also agreed to pay a criminal penalty of $487.2m, although half of that was already paid in 2021.

“Boeing is committed to complying with its obligations under this resolution, which include a substantial additional fine and commitments to further institutional improvements and investments,” said a company spokesperson.

If the deal is approved by a federal judge the plane maker will avoid a criminal fraud trial.

“The [DOJ] agreed that it will not further criminally prosecute the company”, said Boeing in a Securities and Exchange Commission (SEC) filing.

The BBC has contacted the DOJ to request further comment on the agreement.

Two 737 Max aircraft crashed in separate but almost identical accidents that killed 346 people.

In October 2018, all 189 people on a Lion Air flight died after the aircraft crashed into the Java Sea 13 minutes after take-off from Jakarta, Indonesia.

In March 2019, an Ethiopian Airlines flight crashed six minutes after take-off from the Ethiopian capital of Addis Ababa. All 157 people on-board were killed. Both crashes were linked to faulty flight control systems.

In 2021, Boeing agreed to settle US fraud charges and admitted deception over hiding information from safety officials about the design of its 737 Max planes.

Relatives of the victims will have the chance to appeal this latest deal when it is considered by a federal judge.

Mr Singh says the latest agreement has provoked “visceral outrage” from his clients and believes the current payout is insufficient.

“If you look at that $1.1bn, it’s actually like Boeing paying $10 to escape criminal liability. It’s as if they got a misdemeanour ticket or a parking ticket.”