Why Boeing is Paying $100 Million to Families of Victims of the 737 Max Crashes - An Analysis

In light of recent developments, Boeing has announced it will pay $100 million to the families of the victims of the 737 Max crashes. This decision is not without controversy, especially in light of debates over the cause of the accidents. Some argue that the crashes were due to pilot error, while others attribute the incidents to design flaws and oversights. Let's delve into the legal and moral implications of this situation.

Victim's Families vs. Boeing

Charles highlights the importance of maintaining passenger confidence, particularly in countries where the majority of Boeing's affected families reside. Indonesia, with 250 million inhabitants spread across 17,000 islands, and Ethiopia, home to 130 million people, both have significant populations. Losing their trust could have severe repercussions for the company.

If the crashes were due to pilot error, Boeing would still be held morally and legally accountable under the principle of vicarious liability. This means that even if pilots are directly at fault, the company can be held responsible for the resulting deaths as it is the one behind the design and production of the aircraft.

Historical Precedent: The General Aviation Industry in the 1980s and 1990s

This is not the first time a major corporation has faced such scrutiny. In the 1980s and early 1990s, the General Aviation industry nearly collapsed due to similar lawsuits. Survivors of aircraft accidents often sued manufacturers like Cessna and Piper. Juries, even if inexperienced in aviation, would frequently find in favor of plaintiffs, attributing the disaster to the manufacturer despite minimal recent involvement in the aircraft's maintenance or repairs.

Following this period, the U.S. Congress established a legal limit on liability for airplanes, preventing such continuous suits from bankrupting manufacturers. This legislation aimed to balance justice with practical considerations of corporate liability.

The Legal Implications

Legal experts argue that even if pilot error is conclusively proven, Boeing will still be held accountable in court. The primary reason is the sheer financial resources at the company's disposal..

The company's vicarious liability means that Boeing can still be held responsible not only for any direct fault but also for the actions of its pilots. The paid settlement with the victim's families is a direct response to this legal possibility, ensuring that the company can avoid prolonged and costly legal battles.

The Truth Behind the Crashes

Recent investigations and public comments from experts suggest that the crashes were not due to pilot error alone but were a combination of design flaws and oversight. Boeing has spent over six months trying to rectify these issues, but a firm return-to-service date is yet to be determined.

It is alleged that the crashes were a result of a flawed design and a component failure, leading to a chain of events that culminated in the disasters. This cuts across the notion that any pilot could have 'saved the day,' as often portrayed in Hollywood films. The reality is that the design flaws prevented the aircraft from operating safely.

Boeing’s voluntary compensation is a strategic move to preempt further legal action and maintain the company's image and reputation. This decision reflects the company's understanding that it must address the issue proactively to avoid longer-term damage to its business and brand.

While the company recognizes that it made significant mistakes, it is also positioning itself to survive and thrive. This incident, much like the General Aviation industry of the past, serves as a lesson in the importance of thorough design reviews and disclosure of critical information.

Conclusion

To summarize, the 737 Max crashes were not solely due to pilot error but were a combination of design flaws and oversight. The company is paying $100 million to the families of the victims to avoid potential legal battles and maintain confidence in a market where the loss of trust could be catastrophic. This move underscores the importance of corporate responsibility and the legal principles of vicarious liability in the aviation industry.