Lawyers Urge Ethiopian to Reject the Financial Offer by Boeing

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The Seattle Times has reported that American lawyers for Ethiopian Airlines advise the airline not to accept the proposed compensation offer.

Boeing offers $500 million to $600 million, a large portion of which is not cash. The attorneys call the settling “financially disastrous” and suggest the airline sues Boeing for the damages.

According to the letter the Chicago-based attorneys sent, the close to being finalized deal is “a mere fraction” of the actual damage. They explain that since Boing has recently accepted responsibility for criminal fraud during the plane’s certification by regulators, Ethiopian could win much more than the figures currently on the table for discussion. However, the airline, like many others, is now in need of cash.

The letter also mentioned that based on the independent expert’s assessment, the amount the airline could file for and eventually get is $1.8 billion in cash. The carrier is negotiating compensation for the loss of its aircraft, lengthy grounding of Boeing 737 MAX type, the payouts it had to make to the mourning families after the 10 March 2019 crash, and its ruined reputation.

Ethiopia Airlines’ Boeing 737 MAX crashed soon after it took off from Bole Airport on 10 March 2019, killing all 157 passengers on board.

Source: Seattle Times