Boeing has reached a tentative agreement with the U.S. Department of Justice to pay over $1.1 billion, allowing the aviation giant to avoid criminal prosecution related to the two deadly 737 Max crashes in 2018 and 2019. But while this deal helps Boeing sidestep a courtroom, it’s creating turbulence across the global aviation industry.

The crashes of Lion Air Flight 610 and Ethiopian Airlines Flight 302, which killed 346 people, were tied to flaws in the 737 Max’s automated flight control system. Boeing had previously entered a deferred prosecution agreement in 2021, paying $2.5 billion to avoid charges. But prosecutors now say Boeing violated that agreement, leading to the new deal.

Under this latest settlement, Boeing will pay a $243.6 million fine, direct $444.5 million to a victims’ fund, and invest over $455 million in compliance and safety reforms. Crucially, Boeing will admit to misleading U.S. regulators, particularly the FAA, during the 737 Max’s approval process.

The implications go far beyond American borders.

Internationally, the deal is raising eyebrows. Critics argue the settlement is too soft for a company whose missteps cost hundreds of lives. Many families of victims are challenging the deal in court, saying it allows Boeing to avoid true accountability.

This leniency could damage confidence in U.S. regulatory agencies. Nations that once deferred to the FAA for aircraft certifications may start enforcing stricter oversight of American-made planes. The result could be longer certification processes and delays for Boeing deliveries abroad.

Meanwhile, the settlement provides an indirect boost to Boeing’s chief rival, Airbus. With Boeing’s reputation still recovering, some global airlines might feel more secure placing orders with Airbus. That shift could tilt the balance of power in global aircraft sales, especially in emerging markets.

Boeing’s global supply chain may also feel the impact. Suppliers across Europe, Asia, and Latin America rely on Boeing’s stability. Any fallout that affects production could ripple outward, disrupting jobs and investments in other countries.

On a broader scale, the case adds fuel to the ongoing global debate about corporate responsibility. When a major American company is seen to escape criminal prosecution, it can spark frustration in countries with stricter corporate laws. This could prompt international calls for tougher global aviation standards and better enforcement across borders.

Although the deal helps Boeing avoid a criminal trial and protects its eligibility for government contracts, it does little to resolve the reputational damage. As the company pushes to restore trust with passengers, regulators, and global partners, this settlement is more of a waypoint than a final chapter.