"Boeing's Quality Problems: Impact on Small Suppliers and Airlines"

1 min read
Source: Reuters
"Boeing's Quality Problems: Impact on Small Suppliers and Airlines"
Photo: Reuters
TL;DR Summary

Small Boeing suppliers in Washington state, such as Hobart Machined Products, are facing uncertainty and financial strain after U.S. regulators curbed Boeing's production following a mid-air jet panel blowout on an Alaska Airlines flight. The incident risks further erosion of trust and financial strain on the planemaker's most vulnerable suppliers, some of whom could close if Boeing's problems drag on. The FAA's order allows Boeing to continue producing MAX jets but not increase its current monthly rate until the agency is satisfied that quality-control issues uncovered during the probe are resolved, creating confusion and concern among suppliers who had invested in working capital for announced production increases that may not happen.

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