Lion Air families told 737 MAX design flaws linked to deadly crash

Lion Air families told 737 MAX design flaws linked to deadly crash
By Jessica Damiana and Bernadette Christina Munthe

JAKARTA (Reuters) – Mechanical and design issues contributed to the crash of a Lion Air 737 MAX jet last October, Indonesian investigators told victims’ families in a briefing on Wednesday ahead of the release of a final report.

Contributing factors to the crash of the new Boeing jet, which killed all 189 on board, included incorrect assumptions on how an anti-stall device called the Maneuvering Characteristics Augmentation System (MCAS) functioned and how pilots would react, slides in the presentation showed.

The briefing slides showed that a lack of documentation about how systems would behave in a crash scenario, including the activation of a “stick shaker” device that warned pilots of a dangerous loss of lift, also contributed.

“Deficiencies” in the flight crew’s communication and manual control of the aircraft contributed as well, the slides showed, as did alerts and distractions in the cockpit.

The deficiencies had been “identified during training,” the slides said, without elaborating.

Reliance on a single angle-of-attack sensor made MCAS more vulnerable to failure, while the sensor on the plane that crashed had been miscalibrated during an earlier repair, according to the slides.

The final report will be released on Friday.

Some relatives of the victims at the briefing in Jakarta expressed disappointment that direct responsibility wasn’t assigned.

“Why isn’t the airline heavily sanctioned?” said Anton Sahadi, 30, whose relatives Riyan Aryandi and Muhammad Rafi Andrian were killed in the crash. “This isn’t about one or two lives, it’s about 189 lives.”

The role of the civil investigators is not to assign blame but to draw lessons that will make flying safer. Separate court actions will address who is legally responsible for the crash.

Ony Soerjo Wibowo, an investigator with Indonesia’s National Transportation Safety Committee (KNKT) who delivered the briefing, declined to comment afterward. An agency representative also declined to comment.

A representative for Lion Air declined to comment.

A Boeing spokeswoman declined to comment on the briefing, saying: “As the report hasn’t been officially released by the authorities, it is premature for us to comment on its contents.”

The 737 MAX was grounded worldwide after a second deadly crash in Ethiopia in March 2019.

Planemaker Boeing is under growing pressure to explain what it knew about 737 MAX problems before the aircraft entered service.

Boeing has already said it would redesign the MCAS anti-stall system to rely on more than a single sensor and to help reduce pilot workload.

The planemaker is set to release third-quarter financial results on Wednesday.

LION AIR FLIGHT

Contact with Lion Air flight 610 was lost 13 minutes after it took off on Oct. 29 from the capital, Jakarta, heading north to the tin-mining town of Pangkal Pinang.

The Boeing 737 MAX airplane had suffered a sequence of problems in cockpit readings since Oct. 26, culminating in a decision to change the angle-of-attack sensor before the penultimate flight from Denpasar to Jakarta.

During the fatal night-time flight, a “stick shaker” was vibrating the captain’s controls, warning of a stall throughout most of the 13 minutes aloft, based on what investigators believe to have been erroneous data on the attitude of the wings relative to the direction of flight, called the angle of attack.

The angle must be controlled so that the aircraft’s wings maintain lift and avoid stalling, a condition in which a plane will begin to fall out of the sky.

The airplane’s anti-stall system repeatedly pushed the nose of the aircraft down, which is how pilots usually get air under the wings.

Boeing was widely criticized for placing emphasis on piloting and maintenance issues in its public response to an earlier report, sparking a furious dispute with Lion Air co-founder Rusdi Kirana.

The planemaker has since acknowledged that MCAS and a faulty angle of attack sensor played a role, and apologized for lives lost without admitting formal responsibility.

Boeing last month settled the first claims stemming from the Lion Air crash, a U.S. plaintiffs’ lawyer said.

Three other sources told Reuters the families of those killed will receive at least $1.2 million each.

The manufacturer faces nearly 100 lawsuits over the Ethiopian Airlines crash on March 10, which killed all 157 people on board the flight from Addis Ababa to Nairobi.

The 737 MAX was grounded following the second crash, leaving Boeing and the U.S. Federal Aviation Administration (FAA) grappling to contain a crisis that has left 346 people dead, forced airlines to ground more than 300 aircraft, and put Boeing deliveries worth more than $500 billion on hold.

Boeing on Tuesday ousted the top executive of its commercial airplanes division, Kevin McAllister, marking the first high-level departure from the planemaker since two fatal crashes.

(Reporting by Jessica Damiana and Bernadette Christina Munthe; Additional reporting by Jakarta bureau and Tim Hepher; writing by Gerry Doyle; editing by Himani Sarkar and Jason Neely)

U.S.-Mexico-Canada trade deal will help stave off U.S. recession: U.S. Chamber CEO

By Andrea Shalal and Jonas Ekblom

WASHINGTON (Reuters) – Approval and implementation of the U.S.-Mexico-Canada (USMCA) trade agreement will provide a major boost to the U.S. economy and help stave off a recession, Thomas Donohue, chief executive of the U.S. Chamber of Commerce, said on Thursday.

Donohue, whose organization is spearheading a major campaign to win passage of the trade agreement, said moving ahead with the USMCA would also help pave the way for trade agreements with China, the European Union, Japan and other countries.

“It is a major component in keeping us out of a recession,” Donohue told Reuters after a news conference with other trade associations pushing the U.S. Congress to ratify the replacement for the current North American Free Trade Agreement (NAFTA).

He said the timing was critical given other drags on the U.S. economy, including troubles at top U.S. exporter Boeing Co, which this week reported its biggest-ever quarterly loss due to the spiraling cost of resolving issues with its 737 MAX.

Boeing has reduced production of the grounded jet and suspended deliveries, but on Wednesday warned it might have to shut production completely if it runs into new hurdles with global regulators.

The single-aisle plane was grounded worldwide in March after two fatal crashes in Ethiopia and Indonesia.

“A reduction in our economic growth and our trade is taking place with the Boeing problem,” Donohue said. “They’ll survive this, they’ll move forward.”

House of Representatives Republican Leader Kevin McCarthy on Thursday criticized House Speaker Nancy Pelosi and other House Democrats, who control the chamber, for not bringing the USMCA up for a vote before lawmakers leave for their summer recess.

“What will this do? Only make our country stronger, more prosperous, create more jobs, make the debate with China even in a stronger position for America and make the future better than it is today. But they didn’t do anything about it,” McCarthy told reporters at a news conference.

Donohue and other business leaders cited growing bipartisan support for the USMCA and expressed optimism that the House would move to ratify the agreement in September.

Nearly 600 trade and commerce groups sent a letter urging lawmakers to approve the deal as soon as possible.

“If we don’t move positively on Canada and Mexico, it will be very, very difficult for us to muster the goodwill in other places to get agreements with China, with Japan and the EU,” Donohue told a news conference.

Leaders from the United States, Mexico and Canada signed the agreement in November, but it must be ratified by lawmakers in all three countries.

House Democrats have promised to block the deal until their concerns over environmental, labor and pharmaceutical aspects of the agreement are met, but Donohue and others said they were upbeat those issues could be resolved.

White House officials say the agreement would add about half a percentage point of economic growth to the U.S. economy, creating several hundred thousand jobs and sparking up to $100 billion in new investments in the United States.

U.S. Trade Representative Robert Lighthizer is due to meet with Democratic lawmakers about the agreement again this week, with a focus on enforcement issues.

Industry leaders said moving forward would reduce uncertainty and free businesses to make new investments.

“The thing we hear most about the need to move forward with this agreement is the need to provide certainty,” said Matthew Shay, president of the National Retail Federation.

The group said it would use state fairs and events in local districts in coming weeks to pressure lawmakers to back passage of the deal while campaigning against its opponents.

“We will be activating our grassroots network and targeting key districts,” Donohue said. “You can’t be pro-jobs and anti-USCMA.”

(Additional reporting by Susan Cornwell; editing by Chizu Nomiyama and Jonathan Oatis)

Boeing to spend $50 million to support 737 MAX crash victim families

Michael Stumo, father of Samya Stumo, victim of Flight ET302; is embraced by U.S. Rep. Angie Craig (D-MN) as he and Paul Njoroge, representing family members of EA Flight 302, arrive to testify before a House Transportation and Infrastructure Aviation Subcommittee hearing on "State of Aviation Safety" on Capitol Hill in Washington, U.S., July 17, 2019. REUTERS/Joshua Roberts

By David Shepardson

WASHINGTON (Reuters) – Boeing Co said on Wednesday it will dedicate half of a $100 million fund it created to address two crashes of its 737 MAX planes to financial relief for the families of those killed, with compensation expert Ken Feinberg hired by the world’s largest plane maker to oversee the distribution.

The announcement of Feinberg’s hiring came minutes before the start of a U.S. House of Representatives hearing that featured dramatic testimony by Paul Njoroge, a father who lost three children, his wife and mother-in-law in a 737 MAX Ethiopian Air crash in March.

Feinberg told Reuters his team will “start immediately drafting a claims protocol for those eligible,” with the first meeting with Chicago-based Boeing later this week in Washington.

The 737 MAX, Boeing’s best-selling jet, was grounded globally in March following the Ethiopian Airlines crash after a similar Lion Air disaster in Indonesia in October. The two crashes killed 346 people.

Njoroge told reporters after he testified that he did not think the public would trust Boeing going forward. “Do you want to fly in those planes? Do you want your children to fly in those planes?” he asked. “I don’t have any more children.”

Njoroge told a House subcommittee that he still has “nightmares about how (his children) must have clung to their mother crying” during the doomed flight.

Njoroge said Boeing has blamed “innocent pilots who had no knowledge and were given no information of the new and flawed MCAS system that could overpower pilots.” Boeing did not immediately comment on his testimony.

A Boeing official told Reuters last month that after a new software flaw emerged the company will not submit an MCAS software upgrade and training revision until September, which means the planes will not resume flying until November at the earliest. U.S. airlines have canceled flights.

Boeing said on July 3 it would give $100 million over multiple years to local governments and non-profit organizations to help families and communities affected by the crashes in Indonesia and Ethiopia.

Feinberg, who will jointly administer the fund with lawyer Camille Biros, said the other $50 million in the fund is earmarked for government and community projects.

Boeing reiterated on Wednesday that the money distributed through the fund would be independent from the outcome of any lawsuits. The company is facing a slew of litigation from the families of victims of both crashes.

“Through our partnership with Feinberg and Biros, we hope affected families receive needed assistance as quickly and efficiently as possible,” Boeing Chief Executive Dennis Muilenburg said in a statement.

Feinberg has administered many compensation funds including for victims of the Sept. 11, 2001, attacks on the United States, General Motors ignition switch crashes and numerous school shootings.

Boeing’s initial announcement of the $100 million fund was met with anger by some victims’ families, who described the offer as a publicity stunt.

At the hearing in Washington, Representative Peter DeFazio, chairman of the House Transportation Committee, said he would call Boeing officials to testify at a hearing. DeFazio said the committee is in the middle of an in-depth investigation and had just received a “trove” of documents that panel investigators are reviewing.

(Reporting by David Sheperdson in Washington and Ankit Ajmera in Bengaluru; Writing by Tracy Rucinski and David Sheperdson; Editing by Will Dunham and Bill Trott)