Boeing earmarking $100M for those affected by Max crashes
Boeing will spend $100 million to help those impacted by the recent crashes involving the Max fleet, the first financial restitution stemming from the incidents as the Chicago-based manufacturer seeks to bolster its reputation with regulators and the flying public.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| BA | THE BOEING CO. | 149.86 | +6.45 | +4.50% |
The money will cover education and living expenses for families of the deceased, as well as economic development for impacted communities, Boeing said in a statement on Wednesday.
"These lives lost will continue to weigh heavily on our hearts and on our minds for years to come. The families and loved ones of those on board have our deepest sympathies, and we hope this initial outreach can help bring them comfort," said CEO Dennis Muilenburg.
Boeing will also match any donations from employees through the end of 2019.
The company continues to face lawsuits from the families of the 346 people killed in the Lion Air and Ethiopian Airlines crashes, which led to an international grounding of the jet. It also remains unclear how much Boeing will need to pay to carriers like American Airlines that have been forced to cancel flights as a result of the halt in service.
Meanwhile, critics are honing on what information Boeing provided to pilots on the new features of the Max, including the auto-pilot program that contributed to the two incidents.
The company continues to work with the Federal Aviation Administration to address the issues with the Maneuvering Characteristics Augmentation System through a new software update. The agency recently discovered another problem with the Max that Boeing must address before the fleet obtains approval to fly again.
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As the jets sit idle, American, Southwest Airlines and others have extended the potential for flight interruptions through Labor Day weekend.