Boeing makes $100mn pledge for 737 MAX crash-related support

BoeingCo said yesterday it would give $100mn over multiple years to localgovernments and non-profit organisations to help families andcommunities affected by the deadly crashes of its 737 MAX planes inIndonesia and Ethiopia.The move appears to be a step towardrepairing the image of the world’s largest plane maker, which has beenseverely dented by the crash of an Ethiopian Airlines plane in Marchjust five months after a similar crash of a Lion Air flight inIndonesia.The two crashes killed a total of 346 people.Boeing isthe target of a US Department of Justice criminal investigation intothe development of the 737 MAX, regulatory probes and more than 100lawsuits by victims’ families.The multiyear payout is independent of the lawsuits and would have no impact on litigation, a Boeing spokesman said.The$100mn, which is less than the list price of a 737 MAX 8, is meant tohelp with education and living expenses and to spur economic developmentin affected communities, Boeing said.It did not specify which authorities or organisations would receive the money.Manyof the passengers on board the Ethiopian Airlines flight were aidworkers or involved with health, food, or environmental programmes.“Ifthe money is spent on furthering the work of the people on thatairplane it would be money well spent,” said Justin Green, a NewYork-based attorney representing several of the Ethiopia crash victims.But he said the fund would not affect his clients’ courtroom strategy: “What families really want to know is why this happened.Could this have been avoided?”AntonSahadi, a representative of relatives of the Lion Air crash victims,said the families appreciated the $100mn fund but it did not mean theywould stop lawsuits.“We will continue to fight for our rights in the courts,” he said. “Boeing is doing this to build their image back.”Afterthe Lion Air crash on October 29 Boeing started developing a softwarefix on a stall-prevention system called MCAS believed to have played arole in that disaster, as well as in the Ethiopian crash.The 737 MAXwas grounded worldwide after the second crash and regulators mustapprove the fix and new pilot training before the jets can fly again.Butjust last month, regulators identified a new problem that will delaycommercial flight for the jets until October at the earliest.Boeingis in settlement talks over the Lion Air litigation and has separatelyoffered to negotiate with families of Ethiopian Airlines victims, butsome families have said they are not ready to settle, exposing the planemaker to a lengthy court battle.“The Boeing brand is worth far morethan $100mn and the board and executive leadership understand that iswhat is at stake,” said William Klepper, a Columbia Business Schoolprofessor.Following an initial response that public relationsexperts criticised as stilted and lawyer-driven, Boeing has been on acharm offensive, with executives at the Paris Airshow last monthrepeatedly apologising for the loss of life.Boeing chief executiveofficer Dennis Muilenburg posts regular Twitter updates on efforts tosafely return the 737 MAX to service and win back public confidence.RobertClifford, a Chicago-based attorney with several of the Ethiopian crashcases, suggested some of Boeing’s $100mn pledge could be spent assistingefforts to return the remains of victims to their families.“These families are distraught about the effort to get back their loved ones,” Clifford said. “They want closure.”Boeinghas also offered to match any employee donations in support of thefamilies and communities impacted by the accidents through December.