International media reports say Boeing Co. is offering 100 million U.S. dollars to support the families of victims and others affected by two crashes of its 737 Max jetliner, which killed 346 people and have led to scores of lawsuits.
Boeing faces dozens of lawsuits over the crashes in October and in March. Relatives of passengers on a Lion Air Max that crashed off the coast of Indonesia last year agreed to try to settle through mediation, but families of passengers killed in an Ethiopian Airlines crash are waiting until more is known about the accidents, according to CBS News.
Boeing said Wednesday in a statement that the funds “will support education, hardship and living expenses for impacted families, community programs, and economic development in impacted communities.”
According to the statement, Boeing will partner with local governments and non-profit organizations to address these needs. The funds would be committed over multiple years.
The total averages about $289,000 per crash victim, although the amount any person receives could be far less once payments are made to all stakeholders.
The company isn’t placing restrictions related to litigation over how the money can be used, Boeing spokesman Charles Bickers said, according to Bloomberg.
The pledge — described as an “initial outreach” — underscores the high stakes for Boeing as it navigates one of the worst crises in its 103-year history. The Chicago-based planemaker has come under scrutiny from wary passengers, investors, customers and regulators after a pair of fatal crashes prompted the grounding of its marquee Max jet family.
Settling lawsuits on behalf of victims could cost Boeing about $1 billion, Bloomberg Intelligence estimated, although legal experts have said payouts could be higher if evidence shows that Boeing knew about flaws in the planes before the tragedies.
