Boeing to Spend $50 Million for MAX Crash Victims' Families
Boeing
Boeing (BA) - Get Report said Wednesday that it would use $50 million of a $100 million fund for near-term financial aid for families of the victims killed in two crashes involving the troubled 737 MAX jet.
The Chicago aerospace giant also said it retained Kenneth Feinberg and Camille Biros to design and administer the fund. Boeing said funds distributed by Feinberg and Biros "will be independent from any resolution provided through the legal process."
Feinberg was appointed special master of the U.S. government's September 11th Victim Compensation Fund.
He was also administrator of the Aurora Victim Relief Fund following the Aurora, Colorado, shootings in 2012 and the administrator of the One Fund Boston Victim Relief Fund, established to benefit the victims of the Boston Marathon attacks of April 15, 2013.
Biros is his associate who, among other things, worked with Feinberg to help distribute charitable donations to those affected by the Pulse nightclub shooting in Orlando, Florida.
In March one of the new Boeing jets crashed in Ethiopia, and the other went down over Indonesia in October 2018. All on board the jets were killed.
Boeing recently said it would pay out $100 million to help support the families and communities of people who died in the crashes. The company said the money would be given to local nonprofits and community groups that will distribute the funds to the relatives of the 346 people who died.
The 737 MAX has been grounded worldwide. American Airlines (AAL) - Get Report recently extended cancellations of the plane for a fourth time, taking the troubled aircraft out of commission until at least November.
United Airlines (UAL) - Get Report said it would pull all MAX aircraft from its summer schedule, resulting in around 3,200 cancellations over July and August. It doesn't expect Boeing's flagship plane to return until at least Sept. 3, echoing an assessment from Southwest Airlines. (LUV) - Get Report
Shares of Boeing were up 1.2% to $367.04.