2024-01-25 01:23:48 ET
Summary
- Boeing's stock has dropped since the Alaska Airlines incident, but this does not constitute a buy-the-dip opportunity.
- The reason is that the 737 Max flight path remains problematic due to glitches, raising concerns about the quality of the aviation company's supply chain.
- The outsourcing process for the fuselage with Spirit AeroSystems needs to be revamped, and, for this purpose, artificial intelligence can potentially be applied to improve quality.
- Now, since AI is often associated with hype, I substantiate my position by showing how profitability can be improved.
- The underlying theme of this thesis is that proceeding in the usual way with armies of employees checking holes is unsustainable, and a different approach is required.
The Boeing Company's ( BA ) stock has been down since the Alaska Airlines ( ALK ) flight incident involving a plug door of one of its 737 Max coming off during mid-flight. It has since recouped some of its losses as charted below which may be because of some new jet orders , but, the reality is that between crashes and technical glitches, the Boeing 737 Max flight path remains problematic given the long list of issues....
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Boeing: AI Can Improve Quality And In A More Profitable Way