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Boeing Pays Alaska Airlines $160M in Compensation for 737 Max 9 Blowout

Supply Chain Brain

The payment is reportedly for Alaska's pretax losses, as well as lost revenue and costs stemming from returning their Max 9 fleet to service.

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Added Boeing Developments Related to Production Quality Challenges

Supply Chain Matters

Department of Justice has reportedly opened a formal criminal investigation concerning the blowout that left a hole in the side of an Alaska Airlines 737 Max 9 aircraft in January. Paid subscription). This report accounts for the notions of unconforming quality repair needs that are termed traveled work.

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20 Years of Outsourcing Come Back to Haunt Boeing

Logistics Viewpoints

Alaska Airlines Door Blows Out in Flight For 20 years, Boeing has engaged in collaborative product development with a significant number of suppliers. The outsourced R&D, in turn, supported outsourced manufacturing with over 50 key suppliers.

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Boeing’s subcontractor problem

Operations and Supply Chain Management

The strategy is being questioned in the wake of a string of quality problems that include complaints of loose rudder bolts and a recent blowout of a door plug on an Alaska Airlines flight. Dozens of factories build key pieces of 737 and 787 jets before they are assembled by Boeing.

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Update on Boeing 737 MAX Fuselage Door Plug Incident

Supply Chain Matters

As highlighted in our original commentary , an Alaska Airlines Boeing 737 MAX 9 aircraft flying at 16,000 feet experienced a main cabin decompression as a result of a rear exit fuselage door plug blowing out. That has implications for Alaska, United and Copa airlines, the noted operators of this MAX variant.

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Congressional Committee Updated on Alaska Airlines Blowout Investigation

Supply Chain Brain

National Transportation Safety Board chair Jennifer Homendy and FAA administrator Mike Whitaker briefed members of the Senate Commerce Committee on their findings for about two hours January 17.

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Boeing’s Production Quality Crisis Significantly Escalates

Supply Chain Matters

Representatives for Boeing, American, United, Alaska have reportedly either had no comment or have not immediately responded to press inquiries. In its reporting, Bloomberg indicated that Kellner, a former airline CEO , initiated this outreach effort at preliminary conversations at a recent trade group conference.

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