Ethiopia

Boeing commits $100 million for 737 MAX crash victims

Grounded 737 MAX planes in Seattle, WA
Photo: Stephen Brashear/Getty Images

Boeing announced on Wednesday plans to give $100 million to the families and communities impacted by two fatal 737 MAX crashes, reports the New York Times.

Why it matters: "The move was among the most overt acknowledgment[s] of Boeing's responsibility in the crashes..." per the Times. Boeing will likely have to pay more down the line as the company faces numerous lawsuits, investigations and fines.

After Lion Air crash, Boeing rebuffed pilots' call for software fix or 737 MAX grounding

Boeing 737 MAX airplanes at an airport
Photo: Justin Sullivan/Getty Images

American Airlines' pilots union pressed Boeing executives to fix the planes' anti-stall software or ground the 737 MAX after the fatal Lion Air crash in November 2018, but corporate leadership refused to listen — reports the New York Times.

Our thought bubble from Axios' Andrew Freedman: It's unusual to have pilots unions ask an aircraft manufacturer to correct a safety feature or possibly ground an aircraft in the first place. For them to be rebuffed on such a request is even more remarkable. This indicates a breakdown in trust between Boeing and the pilots flying its 737 MAX jets after the crash of the Lion Air plane in October and before the Ethiopian Airlines accident in March. Lawmakers and federal investigators are looking into what Boeing told pilots unions about the plane's anti-stall system known as MCAS, which is suspected to have contributed to both crashes.