Boeing to Compensate Families Affected by Plane Crashes

Boeing Co said it would give $100 million over multiple years to local governments and non-profit organizations to help families and communities affected by the deadly crashes of its 737 MAX planes in Indonesia and Ethiopia. The move appears to be a step toward repairing the image of the world’s largest planemaker, which has been severely dented by the crash of an Ethiopian Airlines plane in March just five months after a similar crash of a Lion Air flight in Indonesia. The two crashes killed a total of 346 people. The multiyear payout is independent of the lawsuits and would have no impact on litigation, a Boeing spokesman said. The $100 million, which is less than the list price of a 737 MAX 8, is meant to help with education and living expenses and to spur economic development in affected communities, Boeing said. It did not specify which authorities or organizations would receive the money. Many of the passengers on board the Ethiopian Airlines flight were aid workers or involved with health, food, or environmental programs. The families of victims of an Ethiopian air disaster on Thursday criticised Boeing’s plan to donate $100m to unspecified charities and communities affected by two crashes, saying it was too vague and that families should have been consulted first.SOURCE: CNBC AFRICA | BUSINESS DAY LIVE

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