Boeing says it will contribute $100M to help families of 737 Max crash victims

Boeingon Wednesday said it would give $100 million US to organizations to help families affected by the deadly crashes of the company's 737 MAX planes in Indonesia and Ethiopia.

The move is a step toward repairing the image of the world'slargest plane maker, which has been severely dented by thecrashes and its sometimes clumsy response to them.

Boeing is being investigated by global regulators and U.S.lawmakers over the development of the 737 MAX and is the defendant in more than 100 lawsuits by the families of victimsof a Lion Air crash in October and Ethiopian Airlines in March,which together killed 346 people.

The multi-year payout is independent of the lawsuits and would have no impact on litigation, a Boeing spokesperson said.

The $100 million is meant to help with education and livingexpenses and to spur economic development in affected communities, Boeing said, without specifying which authoritiesor organizations would receive the money. It also said it willmatch any employee donations through December.

"The families and loved ones of those on board have our deepest sympathies, and we hope this initial outreach can help bring them comfort," said Boeing chief executive Dennis Muilenburg.

CEO posts video message

Following an initial response that public relations expertscriticized as stilted and lawyer-driven, Boeing has been on a charm offensive, with executives at the Paris Air Show last monthrepeatedly apologizing for the loss of life. Muilenburg postedregular Twitter updates on efforts to safely return the 737 MAXto service.

The jets were grounded worldwide in March and Boeing hasbeen working on a fix for software that has been identified as a common link in both crashes.Boeing has been working on an upgrade for a stall-preventionsystem on the plane known as MCAS.

Regulators must approve the fix and new pilot trainingbefore the 737 MAX can fly again.

In a video posted on Twitter on Wednesday, Muilenburg saidthe company was continuing to work with regulators to addresssafety concerns, noting: "It's important we take the timenecessary."

Last month, regulators identified a new problem that willdelay commercial flight for the jets until October at the earliest.

Meanwhile, legal experts said a more apologetic tone byBoeing can appeal to families of victims and encourage them tosettle, an approach similar to a "sorry works" strategy thathospitals use in malpractice lawsuits.

Boeing is in settlement talks over the Lion Air litigationand has separately offered to negotiate with families ofEthiopian Airlines victims, but some families have said they arenot ready to settle, exposing the plane maker to a lengthy court battle.

The money might be better spent returning the remains of victims to their families, suggested Robert Clifford, a Chicago-based attorney representing several of the Ethiopian crash families.

"These families are distraught about the effort to get back their loved ones," Clifford said. "They want closure."