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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. This report accounts for the notions of unconforming quality repair needs that are termed traveled work. Criminal Investigation Underway The U.S.

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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. On February 6 th , the National Transportation Safety Board released a report saying that missing bolts were the likely cause.

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Boeing’s Production Quality Crisis Significantly Escalates

Supply Chain Matters

There were a reported 97 instances of alleged process noncompliance. According to a published report by The New York Times , the FAA’s audit: “ explored how well Boeing’s employees understood the company’s quality control processes.” That was up from a reported 10 percent in 2013. That alone is significant.

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Boeing’s Financial Performance- External Pressures Increase

Supply Chain Matters

Supply Chain Matters provides highlights of Boeing ’s latest report of 2023 financial performance along with added and growing implications from the latest 737 MAX 9 aircraft door plug blowout incident. Latest Financial Performance Report U.S. Commercial aircraft revenues were reported as $10.5 The report further quotes a U.S.

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Boeing’s subcontractor problem

Operations and Supply Chain Management

The WSJ’s Sharon Terlep and Andrew Tangel report that a Boeing engineer warned at an internal symposium in 2001 that entrusting other companies with the production of parts was a big risk , but the company plowed ahead regardless. Subcontractors are emerging as the weakest link in Boeing’s supply chain.

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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. There were no reported fatalities or major injuries, which was very fortunate.

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