Boeing reaches deal to avoid prosecution over 737 Max crashes

The United States Justice Department has reached a deal with Boeing that will allow the aviation giant to avoid criminal prosecution for allegedly misleading US regulators about the 737 Max aircraft before two of the planes crashed and killed 346 people, according to court papers filed on Friday.

Under the “agreement in principle”, which still needs to be finalised, Boeing would pay and invest more than US$1.1 billion, including an additional US$445 million for the crash victims’ families, the Justice Department said.

In return, the department has agreed to dismiss the fraud charge against Boeing, allowing the manufacturer to avoid a possible criminal conviction that could have jeopardised the company’s status as a federal contractor, according to experts.

“Ultimately, in applying the facts, the law, and department policy, we are confident that this resolution is the most just outcome with practical benefits,” a Justice Department spokesperson said in a statement.

“Nothing will diminish the victims’ losses, but this resolution holds Boeing financially accountable, provides finality and compensation for the families and makes an impact for the safety of future air travellers.”

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Boeing on Friday declined to comment.