Boeing Faces More Losses on Starliner Program
Boeing’s CST-100 Starliner project is still causing financial headaches as the spacecraft gets ready to come back from the ISS.
In a recent report to the SEC, Boeing revealed they took another $125 million hit because of delays in finishing the Crew Flight Test (CFT) mission.
Since a problematic test flight in 2019, Boeing has seen around $1.6 billion in losses on the Starliner project. Just last year, they recorded a $288 million loss, with $257 million of that in the second quarter alone after pushing back the CFT mission to 2024.
During a financial call on July 31, Boeing didn’t talk about Starliner directly but did mention that these losses are part of $1 billion in charges related to their Defense and Space business unit, which also includes work on the KC-46A tanker and VC-25B aircraft.
“Clearly, the results this quarter are disappointing,” said Dave Calhoun, Boeing’s outgoing CEO, pointing out the issues with fixed-price contracts. He mentioned, “We expected the fixed-price development programs to remain bumpy until we complete the development phase and transition to mature long-term franchise programs.”
Because of these experiences, Boeing is cautious about taking on more fixed-price projects. Calhoun added, “Based on the lessons that we’ve learned in taking on these fixed-price development programs, we have maintained contracting discipline for all future opportunities.”
More losses might come for Boeing with the Starliner-1 mission delayed from February 2025 to at least August 2025. The company admitted, “Risk remains that we may record additional losses in future periods.”
Meanwhile, Boeing and NASA aim to wrap up the CFT mission by August. On July 27, they tested 27 RCS thrusters on the spacecraft while it was docked at the ISS. This came after some thrusters underperformed during docking in June.
NASA announced, “Preliminary results show all the tested thrusters are back to preflight levels based on thrust and chamber pressure.”
No return date for Starliner is set yet, as engineers review data from ground tests. NASA will decide on a return date after an agency-level review.
Boeing also said preparations are ongoing, including simulations with ground controllers and astronauts Butch Wilmore and Suni Williams. The ISS’s robotic arm checked Starliner’s exterior, a usual step before any vehicle leaves the station.
Sometimes, I wonder why space missions seem to face so many hurdles.
