Boeing offers to pay $100M to victims families.

[Repos]

Given all the talk about Senior Management and working conditions at Boeing, I wonder how their employees will feel about this part.

"Consistent with Boeing's regular process for employee charitable donations, company employees will also have the opportunity to make donations in support of the families and communities impacted by the accidents. Boeing will match these employee donations through December 31, 2019."

I know it's a good cause etc but personally I hate this kind of fund-raisng under such circumstances.

[clipstone1]

Originally Posted by Repos

I seem to recall that this is paid upon identification of the victim

Wikipedia
Under the Montreal Convention, air carriers are strictly liable for proven damages up to 113,100.00 special drawing rights (SDR), a mix of currency values established by the International Monetary Fund (IMF) equal to roughly US$170,000.[3] Where damages of more than 113,100.00 SDR are sought, the airline may avoid liability by proving that the accident which caused the injury or death was not due to their negligence or was attributable solely to the negligence of a third party.[4] This defense is not available where damages of less than 113,100.00 SDR are sought. The Convention also amended the jurisdictional provisions of Warsaw and now allows the victim or their families to sue foreign carriers where they maintain their principal residence, and requires all air carriers to carry liability insurance.


https://en.wikipedia.org/wiki/Montreal_Convention

The Montreal Convention doesn't apply to all carriage by air, outside of the EU it is generally only international carriage. Thus it applies to the Ethiopian flight, but the carrier can limit their liability to SDR113k, since it is largely known the crash wasn't their fault. Lionair was a domestic flight, thus local legislation applies, which is cUSD88k.

Now, none of this matters in a claim against Boeing since there is no legislation limiting the amount that can be claimed, however the issue will be that the airlines might need to prove Gross Negligence on the part of Boeing, since otherwise Boeing will seek to rely on the indemnity in the purchase agreements and pass the cost of the claims back to the actual airlines!

So at strict liability, the Ethiopian claim for passenger liability could be USD27m and the Lionair could be USD16m. The challenge for the claimants lawyers is getting the claim into either an EU or US court, then the number and be multiplied, but in theory only against in a claim against Boeing not the airlines.

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Repos:"Given all the talk about Senior Management and working conditions at Boeing, I wonder how their employees will feel about this part"Boeing didn't care about their employees when they made changes to the pension plans a number of years ago!