An acknowledgment by Boeing's CEO that a new maneuvering system in the company's 737-Max airplanes contributed to two fatal crashes could leave Boeing exposed to billions of dollars in legal liabilities, experts say. Still, CEO Dennis Muilenburg's statement may be an effort to show that Boeing remains in control of the situation, protecting its reputation and minimizing future losses by ensuring airlines, flyers and investors keep faith in the company. Muilenburg on Thursday apologized and said that a preliminary report blames a system embedded in the planes for playing a role in the crashes of Lion Air Flight 610 on Oct. 29 and Ethiopian Airlines Flight 302 on March 10. He said an initial report makes it "apparent that in both flights" a maneuvering system "activated in response to erroneous angle of attack information." The crashes killed nearly 350 people and triggered the worldwide grounding of 737-Max planes until Boeing can deliver a fix. "We at Boeing are sorry for the lives lost in the recent 737 MAX accidents," Muilenburg said in a statement. "These tragedies continue to weigh heavily on our hearts and minds." The apology:Boeing CEO accepts blame for two plane crashes Similarities between crashes:Ethiopian official notes similarity between catastrophic Boeing plane crashes Stanford Law Professor Robert Rabin, an expert on torts who has tracked the matter, said it's too early to tell precisely how Muilenburg's statement will affect Boeing's liability. But "based on what we have up to now and what the CEO said in his statement, it does seem that there’s a very strong case of liability," Rabin said. "It seems clear that there was a defect in the operation of the sensors to begin with." Carl Tobias, a corporate legal liability expert and law professor at the University of Richmond, said there are still significant questions regarding the circumstances of the suspected Boeing defect. "But I do think there’s exposure and potentially substantial exposure," he said. Jim Corridore, a stock analyst at CFRA Research who tracks Boeing, said Muilenburg "definitely stopped short of admitting full liability" for the crashes. He pointed to the CEO's comment that Boeing would provide "associated training and additional educational materials that pilots want in the wake of these accidents" to prevent another accident like this "from ever happening again." "The statement about additional pilot training – that seems to be a little bit of a loophole for them in terms of being able to claim just in lawsuits, mind you, that they are not directly responsible," Corridore said. "I would hate to see them go that route. I think the best move for PR and to move forward is to just take the full brunt of the losses and move forward." Corridore said that the crash liability could add up to anywhere from $1 billion to several billion dollars for Boeing but that it's an isolated incident that's "not going to cripple them." He maintained his recommendation for investors to buy Boeing stock. Boeing's stock has rebounded since late March and closed at $391.93 Friday. Boeing shares are 10.1% above the pre-October crash level and 27% above their price at the start of 2018. "Obviously there's going to be severe liability related to lawsuits for the victims and their families, but as long as there's no malicious intent, if there's no situation where they knew something and they didn't act on it" the liabilities are manageable, Corridore said. Muilenburg's statement may have been designed to mitigate the public relations blow to Boeing's reputation because the company wants to show customers that it's in control of the situation, Stanford's Rabin said. "It’s not going to threaten Boeing's solvency," he said. "The bigger financial threat to Boeing is if they lose future business or some of the contracts that are already outstanding." On Oct. 29, the day of the Lion Air crash, Boeing stock fell 7.8% but then investors appeared to largely shrug off the accident. They rose the following week before generally declining through December 24 and then rebounding strongly, broadly tracking the Standard & Poor’s 500 index during a volatile period. However, after the Ethiopian Airlines crash March 10, Boeing shares fell 14.2% over the next two weeks even as the broad market trended higher. Although the crashes happened overseas, passengers filing wrongful death suits likely can file suits against Boeing in U.S. courts, legal experts said. The family of 24-year-old victim Samya Stumo, an American citizen who was killed on the Ethiopian AIrlines flight on March 10 while taking a trip for work, has already filed a lawsuit. Rabin said that settlements are common in these types of cases so that victims and the targeted corporation can avoid a long period of uncertainty and costly legal tangling. In addition to lawsuits from passengers, airline customers could pursue cases against Boeing to recover their economic damages. For example, Southwest Airlines recently disclosed that it lost about $150 million in revenue during the first quarter due to the groundings and other one-time issues. Southwest estimated that the grounding forced it to cancel 2,800 flights during the period ended March 31. The company has 34 of the Boeing 737 Max 8 aircraft, the most of any American airline. Contributing: Paul Davidson Follow USA TODAY reporter Nathan Bomey on Twitter @NathanBomey.<doc-sep>The CEO of Boeing says the embattled aviation giant is doing everything it can to improve the safety of its 737 MAX aircraft in the wake of the Ethiopian Airlines and Lion Air passenger jet crashes. The 737 MAX aircraft series has come under heavy scrutiny after its involvement in the Ethiopian Airlines crash on March 10 and the Lion Air crash in Indonesia on Oct. 29, 2018, which killed 157 and 189 people respectively. READ MORE: Canada urged to review aircraft certification agreement with U.S. following Boeing 737 MAX 8 crashes On Wednesday, Boeing CEO Dennis Muilenburg said the company was aware that “lives depend on the work we do” and that it was working feverishly to improve the safety of its aircraft. “Based on facts from the Lion Air Flight 610 accident and emerging data as it becomes available from the Ethiopian Airlines Flight 302 accident, we’re taking actions to fully ensure the safety of the 737 MAX,” Muilenburg said in a statement Monday evening. Story continues below advertisement “We also understand and regret the challenges for our customers and the flying public caused by the fleet’s grounding.” WATCH: FAA reportedly delegated some safety assessments of 737 MAX to Boeing 1:03 FAA delegated some safety assessments of 737 MAX to Boeing: Seattle Times FAA delegated some safety assessments of 737 MAX to Boeing: Seattle Times – Mar 18, 2019 Muilenburg said experts from Boeing have been working with Ethiopian authorities and international investigators to assess the information from the airplane’s black box and flight data recorders. He also confirmed that Boeing would soon release a software update for the 737 MAX along with updated pilot training material “that will address concerns discovered in the aftermath of the Lion Air Flight 610 accident.” READ MORE: Boeing 737 MAX upgraded software to be released in as little as a week Canada’s Transport Minister Marc Garneau said Monday that Transport Canada would conduct its own certification of the software update regardless of the U.S. Federal Aviation Administration’s assessment. Story continues below advertisement WATCH: Boeing rushes software update, victim identification could take months 1:44 Ethiopia Airlines crash: Boeing rushes software update, victim identification could take months Ethiopia Airlines crash: Boeing rushes software update, victim identification could take months – Mar 16, 2019 Investigators have identified similarities between data recorded by the Ethiopian Airlines and Lion Air jets. Analysis of the Ethiopian Airlines cockpit recorder showed its “angle of attack” data was “very, very similar” to that of the Lion Air jet that went down near the Indonesian capital Jakarta in October, a person familiar with the investigation told Reuters. The angle of attack is a fundamental parameter of flight, measuring the degrees between the air flow and the wing. If the angle is too high, it can throw the plane into an aerodynamic stall. “If that’s the case, that does raise the possibility that there is a similar occurrence between the Lion Air and Ethiopian Airlines accidents,” Clint Balog, a Montana-based professor at Embry-Riddle Aeronautical University, told Reuters. Even so, it’s too early to draw firm conclusions, he added. Story continues below advertisement WATCH: What are the financial ramifications for Boeing amid 737 MAX 8 controversy? 4:22 What are the financial ramifications for Boeing amid 737 MAX 8 controversy? What are the financial ramifications for Boeing amid 737 MAX 8 controversy? – Mar 14, 2019 Under scrutiny is a new automated system in the 737 MAX model that guides the nose lower to avoid stalling, while Boeing has raised questions in the Lion Air case about whether crew used the correct procedures. In both cases, pilots reported flight control problems within minutes after takeoff and sought permission to return to their port of departure. READ MORE: Ethiopian Airlines black box data shows ‘clear similarities’ with Lion Air crash: ministry The 737 MAX 8 jet has been grounded worldwide amid the safety concerns. The bestselling model was intended to be the industry standard after it was developed in response to rival Airbus’ A320neo, but it is now under a shadow. Story continues below advertisement The new Airbus A320neo rolls on the runway of Toulouse-Blagnac airport, southwestern France, after successfully completing its first flight, Sept. 25, 2014. AP Photo/Frederic Lancelot However, Muilenburg said he had faith in Boeing’s ability to find solutions to the crisis, saying the company was pained by the recent tragedies but would showcase “relentless commitment to make safe airplanes even safer.” Read Boeing CEO Dennis Muilenburg’s full statement below: We know lives depend on the work we do, and our teams embrace that responsibility with a deep sense of commitment every day. Our purpose at Boeing is to bring family, friends and loved ones together with our commercial airplanes — safely. The tragic losses of Ethiopian Airlines Flight 302 and Lion Air Flight 610 affect us all, uniting people and nations in shared grief for all those in mourning. Our hearts are heavy, and we continue to extend our deepest sympathies to the loved ones of the passengers and crew on board. Safety is at the core of who we are at Boeing, and ensuring safe and reliable travel on our airplanes is an enduring value and our absolute commitment to everyone. This overarching focus on safety spans and binds together our entire global aerospace industry and communities. We’re united with our airline customers, international regulators and government authorities in our efforts to support the most recent investigation, understand the facts of what happened and help prevent future tragedies. Based on facts from the Lion Air Flight 610 accident and emerging data as it becomes available from the Ethiopian Airlines Flight 302 accident, we’re taking actions to fully ensure the safety of the 737 MAX. We also understand and regret the challenges for our customers and the flying public caused by the fleet’s grounding. Work is progressing thoroughly and rapidly to learn more about the Ethiopian Airlines accident and understand the information from the airplane’s cockpit voice and flight data recorders. Our team is on site with investigators to support the investigation and provide technical expertise.<doc-sep>Boeing CEO Dennis Muilenburg apologized on Thursday for the two 737 Max 8 jet crashes that killed 360 people within five months. In a video statement posted to Twitter, Muilenburg said the manufacturer assumes responsibility for the two fatal crashes of Lion Air Flight 610 and Ethiopian Airlines Flight 302, both of which took place on the manufacturer's highly popular airliners. "We at Boeing are sorry for the lives lost in the recent 737 accidents and are relentlessly focused on safety to ensure tragedies like this never happen again," the tweet read. Muilenburg promised Boeing would issue a software update for its 737 Max 8 and 9 fleet, which has been grounded internationally following the Ethiopian Airlines crash on March 10. Both flights crashed minutes after takeoff when an automated safety feature known as the Maneuvering Characteristics Augmentation System (MCAS) was triggered erroneously, sending each aircraft into a fatal nosedive. The MCAS system is meant to activate in the event of a plane stalling, and automatically tilts a plane's nose downward. A preliminary report issued by the Ethiopian government on Wednesday said pilots followed Boeing's recommended safety protocol, but still failed to avoid the crash, which killed all 157 people onboard. The Lion Air flight crashed last November when a faulty sensor on the plane's fuselage triggered the MCAS, sending the plane into an irreversible descent into the Java Sea, killing 189 people. Muilenburg maintains that a software update that will rectify the MCAS issue will be ready within the coming weeks. He said in the statement: We remain confident in the fundamental safety of the 737 MAX. All who fly on it—the passengers, flight attendants and pilots, including our own families and friends—deserve our best. When the MAX returns to the skies with the software changes to the MCAS function, it will be among the safest airplanes ever to fly. Hopefully this is the last statement of this type he'll have to make. This content is created and maintained by a third party, and imported onto this page to help users provide their email addresses. You may be able to find more information about this and similar content at piano.io<doc-sep>A Boeing 737 MAX 8 airliner takes off from Renton Municipal Airport near the company's factory, on March 22, 2019 in Renton, Washington. After two crashes of 737 MAX planes in five months, the model has been grounded from from passenger flights by aviation authorities throughout the world. Boeing CEO Dennis Muilenburg said the aircraft maker was "humbled and learning" from an Ethiopian Airlines crash that killed 157 people earlier this month, the second fatal crash of its popular 737 Max plane in less than 5 months. "We've stood shoulder to shoulder in partnership with the Ethiopian team to grieve and extend our deepest sympathies to the families, friends and communities of the passengers and crew," Muilenburg wrote in a statement released Monday. Ethiopian Airlines said on Monday it would maintain ties with the U.S. plane maker despite questions and an investigation into its 737 Max 8 model, which was also involved in the Lion Air crash that killed 189 people in October. Boeing is under intense scrutiny as federal investigators look into whether the plane maker provided incomplete or misleading information about the model to U.S. air-safety regulators. Read Muilenburg's full statement below.<doc-sep>
The Boeing Company issued an apology Thursday and, for the first time, acknowledged its automatic flight control system played a role in the two recent plane crashes in Indonesia and Ethiopia that killed everyone on board. Dennis Muilenburg, CEO of the Chicago-based aircraft manufacturer, apologized for the 346 total lives lost in the October crash of Lion Air Flight 610 and last month's crash of Ethiopian Airlines Flight 302, both of which involved Boeing's new 737 Max 8 jet. "These tragedies continue to weigh heavily on our hearts and minds," Muilenburg said in a statement Thursday. "The full details of what happened in the two accidents will be issued by the government authorities in the final reports, but, with the release of the preliminary report of the Ethiopian Airlines Flight 302 accident investigation, it's apparent that in both flights the Maneuvering Characteristics Augmentation System, known as MCAS, activated in response to erroneous angle of attack information." Ethiopian Airlines Flight 302 went down in clear weather in the morning on March 10, six minutes after taking off from Addis Ababa Bole International Airport in Ethiopia's capital. The American-made jet, carrying 149 passengers and 8 crew members, was headed to Nairobi, Kenya. A 33-page preliminary report released Thursday by the Ethiopian Ministry of Transport's Aircraft Accident Investigation Bureau revealed that the American-made aircraft had a valid certificate of airworthiness, the crew were licensed and qualified to conduct the flight and the plane's takeoff appeared normal. But the jet began nose diving in clear skies just minutes after liftoff from Addis Ababa Bole International Airport in Ethiopia's capital on the morning of March 10. The aircraft, which was headed to Nairobi, Kenya, crashed in a village southeast of the Ethiopian capital, killing all 149 passengers and eight crew members on board. According to the preliminary report, data from the flight data recorder and cockpit voice recorder indicates that one of the plane's angle-of-attack sensors began fluctuating shortly after takeoff and sent "erroneous" information. This activated a new anti-stall safety system on the Boeing 737 Max 8 that controls trim, known as MCAS, which is believed to have pushed the nose of the aircraft down. The pilots followed the "emergency checklist" but could not take back control of the aircraft, according to the report. Sources have told ABC News that the Lion Air Boeing 737 Max 8 also struggled to maintain a steady flight path and the MCAS was activated before the jet crashed into the Java Sea off the coast of Indonesia on Oct. 29, 2018. "The history of our industry shows most accidents are caused by a chain of events. This again is the case here, and we know we can break one of those chain links in these two accidents," Muilenburg said in the statement. "As pilots have told us, erroneous activation of the MCAS function can add to what is already a high workload environment. It's our responsibility to eliminate this risk. We own it and we know how to do it." Boeing has supplied more than 370 Boeing 737 Max 8 jets to 47 airlines since the model debuted in May 2017, and 72 of them are currently flying in the United States. Since the Lion Air crash, the manufacturer has had teams of engineers and technical experts working with the U.S. Federal Aviation Administration and customers to develop and release a software update to the MCAS, along with an associated comprehensive pilot training and supplementary program for the 737 Max, according to Muilenburg. "We're nearing completion and anticipate its certification and implementation on the 737 Max fleet worldwide in the weeks ahead," he added. "This update, along with the associated training and additional educational materials that pilots want in the wake of these accidents, will eliminate the possibility of unintended MCAS activation and prevent an MCAS-related accident from ever happening again." Boeing Commercial Airplanes, a division of the Boeing Company, also acknowledged that the "unintended MCAS activation" were contributing factors in both deadly crashes. "I'd like to reiterate our deepest sympathies are with the families and loved ones of those who lost their lives in the accident," Boeing Commercial Airplanes president and CEO Kevin McAllister said in a statement Thursday. "Understanding the circumstances that contributed to this accident is critical to ensuring safe flight. We will carefully review the AIB's preliminary report, and will take any and all additional steps necessary to enhance the safety of our aircraft." The March 10 crash remains under investigation by Ethiopian authorities.