Budapest Post

Cum Deo pro Patria et Libertate
Budapest, Europe and world news

Boeing 737 Crashes: US Reportedly Opens $500 Million Victim Compensation Fund

Boeing 737 Crashes: US Reportedly Opens $500 Million Victim Compensation Fund

Earlier this year, the Boeing Company entered into an agreement with the US Department of Justice (DoJ) to resolve a criminal charge alleging the aerospace company conspired to defraud the Federal Aviation Administration's Aircraft Evaluation Group (FAA AEG) during the evaluation of the Boeing 737 MAX airplane.

Families of the 346 individuals killed in the twin crashes of Lion Air Flight 610 and Ethiopian Airlines Flight 302 will be awarded a portion of a $500 million compensation fund, according to claim administrators Ken Feinberg and Camile Biros, who recently spoke with Reuters.

The families will have until October 15 to complete and file their claim forms. Per the claim administrators, some $1.45 million has been designated to go toward the families.

The $500 million fund comes as part of a January resolution between Boeing and the DoJ. As part of the deal, Boeing agreed to pay a criminal monetary amount that, in total, exceeded $2.5 billion.

While $500 million was designated for the families of the 346 crash victims, some $1.77 billion was earmarked for compensation payments to Boeing's 737 MAX airline customers.

David P. Burns, then-acting Assistant Attorney General of the DoJ's Criminal Division, asserted in January that the twin 737 MAX crashes "exposed fraudulent and deceptive conduct by employees of one of the world’s leading commercial airplane manufacturers."

"Boeing’s employees chose the path of profit over candor by concealing material information from the FAA concerning the operation of its 737 Max airplane and engaging in an effort to cover up their deception," he added. "This resolution holds Boeing accountable for its employees’ criminal misconduct, addresses the financial impact to Boeing’s airline customers, and hopefully provides some measure of compensation to the crash-victims’ families and beneficiaries."

A Boeing 737 MAX 8 sits outside the hangar during a media tour of the Boeing 737 MAX at the Boeing plant in Renton, Washington


The referenced crashes have ultimately been linked to the 737 MAX's Maneuvering Characteristics Augmentation System, or MCAS, which serves as a flight control system designed to enhance the jet's pitch stability so that it feels and flies like other 737s.

Additionally, a December report from the US Senate Committee on Commerce, Science, and Transportation alleged that employees of both Boeing and the FAA worked together to manipulate recertification tests of the Boeing 737 MAX after the fatal crashes.

The committee contended that the report found "a number of significant examples of lapses in aviation safety oversight and failed leadership in the FAA."

With Boeing's 737 MAX back in the skies, the aerospace company is now looking to get a new jet, the Boeing 737 MAX 10, into the skies. The aircraft, which completed its maiden flight on Friday, is the largest jet in the 737 MAX family, and promises cleaner engines and better fuel efficiency for airlines.

AI Disclaimer: An advanced artificial intelligence (AI) system generated the content of this page on its own. This innovative technology conducts extensive research from a variety of reliable sources, performs rigorous fact-checking and verification, cleans up and balances biased or manipulated content, and presents a minimal factual summary that is just enough yet essential for you to function as an informed and educated citizen. Please keep in mind, however, that this system is an evolving technology, and as a result, the article may contain accidental inaccuracies or errors. We urge you to help us improve our site by reporting any inaccuracies you find using the "Contact Us" link at the bottom of this page. Your helpful feedback helps us improve our system and deliver more precise content. When you find an article of interest here, please look for the full and extensive coverage of this topic in traditional news sources, as they are written by professional journalists that we try to support, not replace. We appreciate your understanding and assistance.
Newsletter

Related Articles

0:00
0:00
Close
IMF Upgrades Global Growth Forecast as Weaker Dollar Supports Outlook
House Republicans Move to Defund OECD Over Global Tax Dispute
France Opens Criminal Investigation into X Over Algorithm Manipulation Allegations
Trump Steamrolls EU in Landmark Trade Win: US–EU Trade Deal Imposes 15% Tariff on European Imports
ChatGPT CEO Sam Altman says people share personal info with ChatGPT but don’t know chats can be used as court evidence in legal cases.
Intel Reports Revenue Beats but Sees 81% Rise in Losses
Politics is a good business: Barack Obama’s Reported Net Worth Growth, 1990–2025
UN's Top Court Declares Environmental Protection a Legal Obligation Under International Law
"Crazy Thing": OpenAI's Sam Altman Warns Of AI Voice Fraud Crisis In Banking
The Podcaster Who Accidentally Revealed He Earns Over $10 Million a Year
UK Government Considers Dropping Demand for Apple Encryption Backdoor
Japanese Man Discovers Family Connection Through DNA Testing After Decades of Separation
Russia Signals Openness to Ukraine Peace Talks Amid Escalating Drone Warfare
Switzerland Implements Ban on Mammography Screening
Pogacar Extends Dominance with Stage Fifteen Triumph at Tour de France
President Trump Diagnosed with Chronic Venous Insufficiency After Leg Swelling
CEO Resigns Amid Controversy Over Relationship with HR Executive
NVIDIA Achieves $4 Trillion Valuation Amid AI Demand
Tulsi Gabbard Unveils Evidence Alleging Political Manipulation of Intelligence During Trump Administration
Centrist Criticism of von der Leyen Resurfaces as she Survives EU Confidence Vote
Trump Announces Coca-Cola to Shift to Cane Sugar in U.S. Production
FIFA Pressured to Rethink World Cup Calendar Due to Climate Change
Zelensky Reshuffles Cabinet to Win Support at Home and in Washington
"Can You Hit Moscow?" Trump Asked Zelensky To Make Putin "Feel The Pain"
Church of England Removes 1991 Sexuality Guidelines from Clergy Selection
Superman Franchise Achieves Success with Latest Release
Hungary's Viktor Orban Rejects Agreements on Illegal Migration
Air India Pilot’s Mental Health Records Under Scrutiny
Jamie Dimon Warns Europe Is Losing Global Competitiveness and Flags Market Complacency
Moonshot AI Unveils Kimi K2: A New Open-Source AI Model
Martha Wells Says Humanity Still Far from True Artificial Intelligence
Nvidia Becomes World’s First Four‑Trillion‑Dollar Company Amid AI Boom
EU Delays Retaliatory Tariffs Amid New U.S. Threats on Imports
Trump Proposes Supplying Arms to Ukraine Through NATO Allies
US Opens First Rare Earth Mine in Over 70 Years in Wyoming
Bitcoin Reaches New Milestone of $116,000
Severe Heatwave Claims 2,300 Lives Across Europe
Declining Beer Consumption Signals Cultural Shift in Germany
Emails Leaked: How Passenger Luggage Became a Side Income for Airport Workers
Polish MEP: “Dear Leftists - China is laughing at you, Russia is laughing, India is laughing”
Western Europe Records Hottest June on Record
BRICS Expands Membership with Indonesia and Ten New Partner Countries
Elon Musk Founds a Party Following a Poll on X: "You Wanted It – You Got It!"
China’s Central Bank Consults European Peers on Low-Rate Strategies
France Requests Airlines to Cut Flights at Paris Airports Amid Planned Air Traffic Controller Strike
Poland Implements Border Checks Amid Growing Migration Tensions
Emirates Airline Expands Market Share with New $20 Million Campaign
Amazon Reaches Milestone with Deployment of One Millionth Robot
Yulia Putintseva Calls for Spectator Ejection at Wimbledon Over Safety Concerns
House Oversight Committee Subpoenas Former Jill Biden Aide Amid Investigation into Alleged Concealment of President Biden's Cognitive Health
×