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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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Alaska Air Profit Forecast Signals Rebound From Max Woes

Supply Chain Brain

Alaska shares gained 5% in New York after earlier rising as much as 7.1%, the most in more than two years.

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Boeing 737 MAX 9 Door Plug Incident- Latest Update

Supply Chain Matters

Background As highlighted in our original commentary , in early January, 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. Alaska itself is indicating the need for a $150 million added charge related to the disruption.

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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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Van Horne Institute Considers Alaska Transport Route, and Weighs Trump’s Plans for Keystone XL

NC State SCRC

The Alberta government asked the Van Horne Institute to examine the case for building a railway from the Oil Sands fields of Fort McMurray to the Delta junction in Alaska. The team was not sure that the Alaska Pipeline would be interested in taking Canadian oil into their system. This leaves one option open: Go North.

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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.