Boeing's apology last week for two deadly crashes involving its 737 MAX model has emboldened a group of Indonesians whose relatives were killed in the first crash to sue for compensation, their lawyer said on Monday.
The business said that beginning in mid-April it will reduce production of this plane to 42 from 52 a month so that it could concentrate its attention on fixing. Never the less, the US-based low-priced carrier maker with a market capitalization of 101.1 billion did not reveal an end-date.
Boeing is cutting its 737 Max production rate as the company works to return the plane to flight.
"By proactively canceling these flights, we are able to provide better service to our customers with availability and rebooking options", American said on its website. Abdalla, a USA citizen, was killed when Ethiopian Air Flight 302 crashed shortly after take-off on March 10.
Moreover, the lawsuit said Boeing didn't properly inform pilots about the dangers of the MCAS, or no stalling system. As a result, the attorney said hundreds of people were killed in two crashes that were not even six months apart.
More families of victims of the Lion Air crash in Indonesia are suing Boeing Co. after its chief executive apologized and said a software update for the MAX 8 jet would prevent further disasters.
Boeing is facing the worldwide grounding of its best-selling 737 Max series planes after the said model aircraft crashed twice in less than five months.
Boeing is set to report the number of planes it delivered during the quarter.
"Regaining the Boeing 737 Max airworthiness certificate is not just a simple software fix", Epstein warned in a client note. The company said earlier this week that it would be several more weeks before it could submit the software update to the Federal Aviation Administration for approval.
Meanwhile the firm's board, upon the CEO's request, has set up a committee in charge of reviewing company-wide policies and processes for the design and development of Boeing planes.
On Thursday, an initial report by the Ethiopia Transport Ministry found the crew of the doomed plane repeatedly followed procedures recommended by Boeing, confirming concerns about the flight control system on the plane, especially its anti-stall system suspected of being a factor in the crashes.
We really do not know at this point.
"The history of our industry shows most accidents are caused by a chain of events", Muilenburg said.
"Safety is our responsibility, and we own it", asserted Muilenburg.
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