Boeing agrees $1.1bn deal over fatal 737 Max crashes

Boeing has agreed to pay $1.1bn (£811.5m) to avoid prosecution over two fatal airline crashes that killed 346 people.

The payments are part of a settlement with the US Justice Department (DOJ) over crashes involving 737 Max jets in October 2018 and March 2019.

The agreement includes the US aviation giant 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, with half of that 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, which was due to begin on 23 June.

The BBC has contacted the DOJ to request 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.

“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”, said Boeing.