Boeing compensates families

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NEW YORK: Boeing, under scrutiny after two crashes that claimed 346 lives, announced Wednesday it would give $100 million to communities and families affected by the 737 Max disasters.

Describing the sum as an “initial investment” over multiple years, the company said it would work with local governments and non-profit organisations to provide “hardship and living expenses” and boost economic development in regions affected by crashes of planes operated by Ethiopian Airlines and Lion Air.

Boeing faces numerous lawsuits filed by the victims’ families, some of whom have appeared at news conferences or during congressional hearings probing the disasters.

The Max was grounded globally after the Ethiopian Airlines crash in March and there is still no firm timetable for returning the planes to service.
The Federal Aviation Administration last week identified a fresh problem during simulator testing, further clouding the outlook for the plane’s return.

The company has been widely criticized over its development of the 737 Max, which included a flight handling system called the Maneuvering Characteristics Augmentation System that has been seen as a factor in both crashes.

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In both crashes, the MCAS pointed the plane sharply downward based on faulty sensor readings, hindering pilot control after takeoff, according to preliminary results from crash investigations.

Pilots have said they were not adequately trained on the MCAS system and that it was not disclosed to them, while the FAA has said it was kept in the dark for more than a year about a problem with a sensor linked to the system.

The $100 million figure is less than the list price for several leading 737 Max planes. Boeing said it
would also match donations from employees to families and communities affected by the accidents. – AFP

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