Get 40% Off
These stocks are up over 10% post earnings. Did you spot the buying opportunity? Our AI did.Read how

Boeing to assess whether more action needed after NTSB findings, official says

Published 02/06/2024, 07:15 PM
Updated 02/06/2024, 08:16 PM
© Reuters. FILE PHOTO: A worker walks past Boeing's new 737 MAX-9 under construction at their production facility in Renton, Washington, U.S., February 13, 2017. Picture taken February 13, 2017. REUTERS/Jason Redmond//File Photo

By Valerie Insinna

SEATTLE (Reuters) -Boeing will look at the preliminary results from the National Transportation Safety Board's (NTSB) investigation of the 737 MAX 9 blowout and decide whether to take more action around the door plug, a Boeing (NYSE:BA) quality official said on Tuesday.

A door plug that flew off an Alaska Airlines MAX 9 jet mid-flight on Jan. 5 appeared to be missing four key bolts, according to the NTSB's preliminary report released earlier on Tuesday.

"We're going to look at the changes we've already put in place in our factories and other places around the plug specifically," Doug Ackerman, Boeing Commercial Airplanes vice president of supplier quality, said during an aerospace supply chain conference near Seattle.

He added if Boeing found it had already made the changes needed to address the specific problems raised by the NTSB investigation, "we're going to look at other places where we need to apply the same rigor."

The NTSB's initial findings show the door plug had to be removed and reinstalled at Boeing's factory in Renton, Washington, and included photo evidence the bolts required to hold the plug in place appeared to be missing.

However, investigators did not weigh in on whether the reinstallation was performed by Boeing or supplier Spirit AeroSystems (NYSE:SPR), which conducted repair work to nearby rivets.

Ackerman declined to provide further comment on the NTSB findings, instead speaking broadly about the need to improve production quality throughout the supply chain.

Boeing said on Sunday it would have to do more work on about 50 undelivered 737 MAX jets, potentially delaying some near-term deliveries, after Spirit discovered two mis-drilled holes on some fuselages.

3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads .

The overall production defect rate is "pretty steady" despite visible manufacturing errors that have forced additional work to correct them, Ackerman said, adding that most issues do not force Boeing to rework planes.

The U.S. planemaker has traced defects to issues such as employee turnover, financial instability, or new work taken on by a supplier. Boeing is working with some companies to develop inspection plans that can cut down on defective parts moving up the supply chain, Ackerman said.

After one conference attendee asked what Boeing was doing to incentivize suppliers, Ackerman said the planemaker was willing to help suppliers "where we can" by providing solutions such as new technology or a change in contract terms.

"I hope we all have the same incentive ... the criticality of everything we put on the airplane to make it operate like it needs to and to make it safe," he said.

Latest comments

Means clueless
Sounds like they have absolutely no plan.
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.