Boeing has set aside a compensation package of USD100 million to support the families of the victims of the two Max 737 aircraft crashes that claimed about 346 lives under six months ago.
A statement released by the company on July 3 stated that the money will be channeled to support “education, hardship and living expenses” for families, along with economic development in affected communities.
The CEO of Boeing Dennis Muilenburg who labeled the funds as “initial outreach” noted that the company is focused on regaining the “trust and confidence from our customers and the flying public in the months ahead.”
The compensation package is coming at a turbulent time for the company which is also going through tough scrutiny as to what went wrong with its best selling 737 Max aircraft.
Last October, a Lion Air aircraft plunged into the sea less than 15 minutes after taking off from Jakarta, killing all 189 people on board. Then in March, a Nairobi-bound Ethiopian Airlines flight crashed six minutes after departing Addis Ababa, killing all 157 people.
The two crashes, however, have been linked to bad sensor data triggering an automated anti-stall system called the Maneuvering Characteristics Augmentation System (MCAS) which directs the plane sharply downward.
Consequently, governments and aviation regulators grounded the 737 Max all across the world, with families, investors, and pilots all filing lawsuits against Boeing.
According to analysts the lawsuits could be the largest non-war aviation reinsurance claim on record and could rise to at least $1 billion according to a Bloomberg Intelligence Estimate.
An aviation attorney Joseph Wheeler, whose firm is representing 400 737 Max pilots in a class-action suit against Boeing said, “This could be an attempt by Boeing to demonstrate an attitude of repentance, with a view to minimizing the ultimate awards of punitive damages that I expect will be made against them.”
Also, reports have it that the aircraft making company is still working on a software patch to update its 737 Max software.
