189 Dead in Crash, Boeing Reaches Settlement with Families of Indonesian Lion Air Victims

Agreement Reached with 171 Bereaved Families out of 189

Settlement Amount Estimated Between 1.4 Billion and 3.6 Billion KRW

[Image source=Reuters Yonhap News]

[Asia Economy Reporter Kwon Jae-hee] The Lion Air Boeing 737 Max crash in Indonesia in October 2018, which resulted in 189 fatalities, has finally reached a settlement with the victims' families.

According to major foreign news outlets on the 8th (local time), Boeing announced in a class-action lawsuit status report submitted to the U.S. District Court in Chicago the previous day that it had reached a settlement with the families of 171 of the 189 victims.

The Boeing 737 Max aircraft of Indonesia's Lion Air crashed into the sea shortly after takeoff from Jakarta on October 29, 2018, killing all 189 passengers on board. In March of the following year, a Boeing 737 Max operated by Ethiopian Airlines also crashed, resulting in 157 deaths, bringing the total number of lives lost to 346.

After a year-long investigation, Indonesian transportation authorities concluded that a combination of design and certification flaws in the Boeing 737 Max aircraft, maintenance issues, and pilot errors contributed to the crashes.

Boeing has kept the compensation amount and settlement terms with the victims' families confidential, but anonymous sources report that the amount is estimated to range from a minimum of $1.2 million (approximately 1.44 billion KRW) to a maximum of $3 million (approximately 3.6 billion KRW). Separately, the families will receive $144,500 (approximately 170 million KRW) from Boeing as support funds for the victims' families.

Boeing expressed deep remorse for the Lion Air and Ethiopian Airlines crashes and announced a total fund of $100 million (approximately 11.93 billion KRW), including $50 million for victim support and $50 million for educational and financial aid to communities affected by the crashes.

Boeing stated, "We once again express our condolences to the victims and families of the Lion Air crash," and added, "We are pleased to have made significant progress in reaching settlements with the families over the past few months."

Following the accidents, Boeing temporarily halted production of the 737 Max model in January of this year but resumed last month. Currently, the Boeing 737 Max remains grounded, but safety certification procedures are underway to allow it to fly again by the end of this year.