Boeing is facing financial challenges with its Starliner program. The manned capsule initiative has resulted in a recent loss of $125 million, in addition to the previously reported $1.1 billion deficit. This is concerning for the company, which hasn’t generated annual profits since 2018. Boeing is also dealing with alleged quality issues at its aircraft factories and is set to undergo a change in CEOs by the end of the year.
Meanwhile, SpaceX has benefited greatly from NASA’s Commercial Crew Program, successfully ferrying astronauts to the International Space Station (ISS) using its Dragon capsule since 2020. In contrast, Boeing has faced setbacks with its Starliner manned test, which started in June and has no confirmed completion date.
Starliner: Boeing’s Nightmare
Boeing’s space division, formally known as Defense, Space & Security, faced challenges when it accepted a fixed-price contract for the shuttle service to the ISS years ago. In 2014, NASA awarded a $4.2 billion contract to Boeing for the completion of Starliner development and a $2.6 billion contract to SpaceX for its manned version of the Dragon capsule.
The uncrewed launch of Starliner was initially scheduled for 2017 but faced multiple delays, eventually taking place in 2019. However, a docking issue led to its return to Earth shortly after reaching space. Starliner successfully docked with the ISS for the first time in 2022 without any astronauts onboard. In May, the space agency launched the first manned mission of the spacecraft using an Atlas V rocket.
After encountering some setbacks, Starliner successfully docked to the ISS, and the astronauts moved to the orbital laboratory with the plan to stay there for about a week. Specialists have decided to thoroughly examine small helium leaks, which were detected before launch, and a failure in the propulsion system while taking full advantage of the spacecraft’s current state. Additionally, they're conducting laboratory tests on the ground before approving its return, with or without astronauts.
Currently, it seems that Boeing will continue to incur expenses as it addresses the surrounding problems and prepares for Starliner’s first operational mission, which is expected to take place in 2025. The company has acknowledged that “the risk remains that we record additional losses in future periods.” Boeing has experienced first-hand the negative impact of the fixed-price contract.
When Boeing finalized its contract with NASA to develop a space capsule for transporting astronauts to the ISS as an alternative to SpaceX’s manned Dragon, it likely didn’t anticipate that its project would face delays and cost overruns. However, the space agency previously agreed to provide additional funding to ensure that its second contractor remains viable. The future of Starliner’s regular service to the ISS remains uncertain.
This article was written by Javier Marquez and originally published in Spanish on Xataka.
Image | NASA
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