Boeing will spend $100 million on families affected by 737 Max crashes

As part of yet another apology, Boeing will give $100 million to families affected by two fatal crashes within the past year involving its 737 Max.

“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,” said Dennis Muilenburg, Boeing chairman, president, and CEO. “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,” he continued. “We are focused on re-earning that trust and confidence from our customers and the flying public in the months ahead.”

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The $100 million is slated to cover family and community needs of those impacted by Lion Air Flight 610 and Ethiopian Airlines Flight 302. Company employees will be allowed to contribute to the financial effort, a move that Boeing says is consistent with its “regular process for employee charitable donations.”

In a press release Wednesday, the company announced that the money will support “education, hardship and living expenses for impacted families, community programs, and economic development” in communities affected by the crashes. Boeing will seek assistance from local governments and non-profits to organize the assistance which is expected to last years.

A software glitch in the planes’ MCAS system is suspected to have forced the nose down, crashing the two planes. Shortly after, the 737 Max model was grounded. About 400 planes globally have been grounded as a result.

A Department of Justice investigation has also been launched to look into the relationship between the FAA and Boeing in regard to safety inspections. In June, a Boeing employee told KIRO Radio that the company had a routine when it came to FAA inspectors — a relationship that seemed cozy between the two parties.

“We didn’t really see the FAA,” James Baldwin said. “A senior leader would get an email saying the FAA is going to be in the factory. So basically everybody stops working and they go and clean the place and fix all the things, make sure all your chemicals are properly disposed of, all your drawings are contained, all your tools are accounted for. All the stuff they should be doing that they don’t do on a day-to-day basis, they do for the inspection. As soon as they leave, and they don’t get any fines, it goes back to the way it was before they came.”

“There’s always talk of random stop-ins of the FAA, but in all my years I never once had an auditor come through,” he said. “Basically, you’re supposed to give them your name, your employee identification, and refer everything to your manager.”

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