The settlement agreement between prosecutors at the US Justice Department and aircraft maker Boeing, was reached after it was found that the company falsified certifications for their 737 MAX aircraft.
As a result, a software failure on both flights plunged both planes in to the ground, killing everyone on board.
The fund will compensate families of those who perished in accidents involving the 737s made by Boeing and enable them to avoid a lengthy legal process following these tragedies.
Each Eligible Family Will Receive About $1.45 Million in Damages
Claim administrators Ken Feinberg and Camille Biros said the families who have been affected by the tragedy will be compensated with nearly $1.45 million, and they will receive their money on a rolling basis as claim forms are submitted and completed.
Families have until October 15th to complete their claims process.
The payout is part of the larger $2.5B settlement after Boeing was charged with fraud regarding certification of the 737 MAX plane.
Boeing Had Already Started Compensating Families in 2019
In July 2019, Boeing started distributing a separate $50 million settlement to the families of the crashes. The new fund's distribution follows a similar formula.
Lion Air Flight 610 and Ethiopian Airlines Flight 302 Killed 346 Due to Software Malfunction
Boeing, one of America's most revered companies, recalled their entire 737 Max fleet following an unspeakable tragedy when Lion Air flight JT610 crashed into the Java Sea on October 29th while attempting its second takeoff from Jakarta Airport; killing all 189 passengers and crew members aboard.
Then, on March 10, 2019, Ethiopian Airlines Flight 302 crashed six minutes after takeoff from Addis Ababa Bole International Airport in Ethiopia.
157 perished in that accident.
From Around the Tarmac...
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National flag carrier, Viet Nam Airlines has the ability to fly into North America with their new Foreign Air Operator Certificate.
Jet Airways plans on a return to service within 6 months and is reportedly in talks for planes with Airbus and Boeing.