Boeing sets aside $US100m for 737 MAX families

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July 04, 2019
Boeing MAX fund
Ethiopian 737 MAX engine. Image: CNBC

Boeing has set aside $US100 million to address the family and community needs of people affected by the two Boeing 737 MAX crashes in Indonesia and Ethiopia.

The company said the funds would be spent over several years and would support education, hardship and living expenses for impacted families as well as community programs and economic development in impacted communities.

It plans to partner with local governments and non-profit organizations and said additional information would be released in the near future.

Read: Boeing reveals its newest flying test bed.

It will also match employee charitable donations on a dollar-for-dollar basis for the remainder of the calendar year.

The two crashes, involving Ethiopian Airlines and Flight ET302 in March and Lion Air Flight 610  in October last year, between them killed 346 people.

The crashes led to the grounding of the 737 MAX fleet after preliminary investigations indicated that software changes to the flight control system played a role in both tragedies.

“We at Boeing are sorry for the tragic loss of lives in both of these accidents and these lives lost will continue to weigh heavily on our hearts and on our minds for years to come,’’ Boeing chief executive Dennis Muilenburg said in a statement.

“The families and loved ones of those on board have our deepest sympathies, and we hope this initial outreach can help bring them comfort.

“We know every person who steps aboard one of our airplanes places their trust in us. We are focused on re-earning that trust and confidence from our customers and the flying public in the months ahead.”

The payment is independent of the multiple lawsuits the company is facing from lawyers representing families of the crash victims.

Some lawyers have already dismissed the move, with one labeling it disingenuous.

Robert Clifford, who represents 23 families,  told the BBC: “This type of offer so early in the litigation process is unprecedented. Because there is still so much to learn about what occurred, it also appears to be disingenuous.”

Boeing has designed new software it says will prevent similar accidents from happening again and is trying to get it approved by regulators.

That process ran into an additional hurdle recently when testing reportedly uncovered problems with a microprocessor that affected the ability of pilots to quickly follow recovery procedures for a runaway stabilizer.

READ: Boeing 737 MAX identifies new risk

The company has yet to detail the issue but Muilenburg said in a July 4 tweet that the review process had uncovered “an additional flight condition we must address to reduce pilot workload and ensure the safety of the airplane and the flying public”.

“We agree with the FAA that we must take action on this and we’re already working on the required software,” he said.

“In parallel, our work continues with regulators to complete as many elements of the certification process as possible as we develop this additional software.

“We’re working hard with a rigorous focus on safety and it’s important we take the time necessary to make these updates.”

Several government reviews are also underway into Boeing, the MAX certification process and the company’s relationship with the FAA.