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Disasters: Boeing Pledges to Pay Up

1 minute read
TIME

When a passenger jet crashes, the airline involved and the manufacturer of the plane often square off in lengthy court battles to determine who was at fault. Meanwhile, the families of the accident’s victims have to wait months or even years for compensation. That may not happen to relatives of the 524 people who were killed in the August crash of a Japan Air Lines Boeing 747. Last week in a highly unusual step, the Seattle-based aircraft maker agreed, for the time being, to share equally with JAL the compensation costs in an effort to ensure swift payment. The expense may reach $135 million. Once the cause of the crash has been determined, Boeing said, it and JAL could then settle up between themselves.

Boeing may have moved quickly because an internal investigation indicated that it did an inadequate repair job on the plane after the tail section was damaged in a 1978 rough landing. The company now seems eager to show airlines that it still stands behind the 747, the flagship of its fleet.

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