Boeing Avoids DoJ Prosecution, But Pays $2.5B | Aero-News Network
Aero-News Network
RSS icon RSS feed
podcast icon MP3 podcast
Subscribe Aero-News e-mail Newsletter Subscribe

Airborne Unlimited -- Recent Daily Episodes

Episode Date

Airborne Unlimited-Monday

Airborne Unmanned

Airborne Unlimited-Wednesday Airborne Flight Training

Airborne Unlimited-
Friday

Airborne-ANN Airborne Unlimited--01.25.21 Airborne-Unmanned--01.20.20 Airborne Unlimited--01.21.21 Airborne-Flight Training--01.14.20 Airborne Unlimited--01.22.21

Airborne On YouTube

Airborne Unlimited--01.25.21

Airborne-Unmanned--01.20.20

Airborne Unlimited--01.21.21 Airborne-Flight Training--01.14.20

Airborne Unlimited--01.22.21

Sat, Jan 09, 2021

Boeing Avoids DoJ Prosecution, But Pays $2.5B

Reaches Conditional Agreement with Department of Justice

Boeing has avoided criminal prosecution as a result of its many perceived and real failings in the wake of the 737 Max tragedy.

Boeing has entered into an agreement with the Department of Justice, which resolves the Department’s investigation into the Company relating to the evaluation of the Boeing 737 MAX airplane by the FAA. As part of Boeing’s resolution with DOJ, the Department has agreed to defer prosecution of the company, provided that Boeing abides by the obligations set forth in a three-year deferred prosecution agreement, after which time the charge will be dismissed.

Under the agreement, Boeing will pay a penalty of $243.6 million and provide $500 million in additional compensation to the families of those lost in the Lion Air and Ethiopian Airlines accidents. The agreement also includes a commitment to provide $1.77 billion to Boeing’s airline customers as part of the Company’s ongoing efforts to compensate those customers for financial losses resulting from the grounding of the 737 MAX.

The agreement is based on the conduct of two former Boeing employees and their intentional failure to inform the FAA Aircraft Evaluation Group (AEG), the group within the FAA responsible for making pilot training determinations, about changes to the Maneuvering Characteristics Augmentation System (MCAS).

As a result of this conduct, the agreement states that the FAA AEG was not fully informed about MCAS’s expanded operating range when it made its training determinations for the MAX. While focusing on the conduct of these two former employees, the agreement recognizes that other Boeing employees did inform other officials and organizations within the FAA about MCAS’s expanded operating range in connection with the certification of the 737 MAX.

David L. Calhoun, Boeing President and Chief Executive Officer, said in a note to employees: “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. 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.”

Boeing’s announcement of the agreement was accompanied by an 8-K filing with the Securities and Exchange Commission, which reflected that the Company had taken a $743.6 million charge to earnings in connection with its commitments under the agreement.

FMI: www.justice.gov, www.boeing.com

Advertisement

More News

Airborne 01.25.21: Electric Velis, Whitehouse Moon Rock, Drone Chutes

Also: Bryant S-76B Crash Hearing, AeroEducate Initiative, Liberty University, Sustainable Fuels Pipistrel-USA reports that over the course of 2020, Pipistrel delivered 111 certifie>[...]

Airborne 01.19.21: Virgin Orbit Succeeds!, Heli-Expo, AirVenture Kids 4 Free

Also: 2021 Reno Air Races, Air Travel Down 60%, SLS Hot Fire Test Terminated, Honda Aircraft Virgin Orbit confirmed that its LauncherOne rocket reached space during the company&rsq>[...]

Airborne 01.21.21: Velocity V-Twins, Heli-Expo Cancelled, Ligado Debacle

Also: Space Florida, Datalink ADS-B, American Rocketry Challenge, 25-Hour Voice/Data Recorders An ANN visit to Velocity Aircraft this week was an eye opener... one of the few true >[...]

ANN's Daily Aero-Linx (01.23.21)

Aero Linx: Aces High Aces High is an international company specialising in the highly collectible field of autographed Aviation and Military Fine Art. With major Galleries in the U>[...]

Klyde Morris (01.22.21)

Klyde Has To Be VERY Careful About What He Says... FMI: www.klydemorris.com>[...]

blog comments powered by Disqus



Advertisement

Advertisement

Podcasts

Advertisement

© 2007 - 2021 Web Development & Design by Pauli Systems, LC