Boeing faces criticism and enhanced penalties over 737 Max crash settlements

Boeing has reached a contentious $1.1 billion settlement to avoid prosecution following two devastating crashes involving its 737 Max aircraft that caused the deaths of 346 individuals. This agreement with the US Department of Justice (DoJ) includes a payment of $444.5 million to the victims’ families and an additional $445 million investment into improving compliance, safety, and quality programmes.

The plane manufacturer has already paid $243 million towards a separate criminal penalty agreed upon in 2021, forming part of an overall $487.2 million penalty. While Boeing has expressed regret for the events surrounding the 2018 and 2019 tragedies, critics and representatives of victims’ families are denouncing the settlement as insufficient and morally inadequate. Sanjiv Singh, a lawyer representing families of the 2018 crash victims in Indonesia, openly criticised the agreement, stating it allows Boeing to escape genuine accountability for its actions.

The two crashes, involving Lion Air flight 610 in October 2018 and Ethiopian Airlines flight 302 in March 2019, exposed severe flaws in flight control systems on the 737 Max jetliner. These crashes, killing 189 and 157 people respectively, led to worldwide scrutiny of Boeing’s safety measures and effectively grounded the 737 Max fleet for nearly two years. The tragedies also sparked legal battles, with families of the victims advocating for a public trial and harsher penalties against Boeing and certain former executives.

According to legal filings, this latest deal requires court approval, as it seeks to dismiss a fraud charge that Boeing faced. However, past legal proceedings have demonstrated the company’s challenges in adhering to compliance terms. The DoJ previously claimed that Boeing violated the terms of its 2021 settlement agreement by failing to implement necessary measures to detect and prevent federal anti-fraud law violations. Observers suggest this could further complicate the approval process.

A US judge initially rejected a proposed guilty plea by Boeing last year, citing concerns regarding the independent monitoring procedure and questioning whether diversity policies within Boeing and government institutions could influence compliance oversight. The rejection of the earlier deal has remained a focal point in discussions surrounding corporate accountability and the role of regulators in holding large companies responsible for safety failures.

Commenting on the new agreement, a Boeing spokesperson emphasised the company’s stated commitment to ensuring compliance and making institutional improvements. Despite this, families of victims are continuing to demand stricter consequences, with many asserting that financial settlements and pledges of reform do not suffice for addressing the scale of the tragedy or holding Boeing fully accountable for its failures.