Boeing has reported an additional $125 million loss on its Starliner astronaut capsule program, extending the total losses to $1.6 billion. The latest setback stems from delays in Starliner’s first crewed flight test, which was initially set to last eight days but has now been in orbit for nearly two months. The Starliner program, funded by a $4.2 billion contract awarded in 2014, operates on a fixed-price basis, meaning Boeing bears the full cost of any overruns.
SpaceX’s Success Story
In contrast, SpaceX, which received a $2.6 billion fixed-price contract around the same time, has successfully met its obligations. Since 2020, SpaceX’s Crew Dragon capsule has been fulfilling NASA’s and private clients’ needs. NASA originally planned to buy six crewed launches from both Boeing and SpaceX. Due to repeated delays with Starliner, NASA has since purchased eight additional missions from SpaceX, leaving SpaceX as NASA’s sole provider for astronaut transportation.
Starliner’s Troubles
The Starliner program has encountered a series of challenges. An uncrewed test flight in 2019 revealed critical issues, delaying the program by two years. Although Boeing celebrated a successful uncrewed mission in 2022, further complications pushed the crewed flight test to June 2023. This mission, which launched on June 5, carried NASA astronauts Butch Wilmore and Suni Williams to the International Space Station (ISS). However, the mission faced difficulties including thruster malfunctions, extending the astronauts’ stay in space.
Future Contracting Concerns
These ongoing issues have made Boeing cautious about future fixed-price contracts. Outgoing CEO Dave Calhoun remarked, “The lessons from these fixed-price programs have led us to be more disciplined in future contracting.” Boeing faces the possibility of further losses, as NASA has postponed the first Starliner mission to August 2025 at the earliest. Major modifications to Starliner’s propulsion system could lead to additional expenses.
Uncertain Return Date
Starliner currently lacks a confirmed return date to Earth. NASA plans to complete a final readiness review by early August to determine the return schedule. Despite the setbacks, recent tests of Starliner’s thrusters have shown improvement, with NASA reporting on July 30 that the thrusters are performing at preflight levels.
NASA’s Ongoing Commitment
NASA remains committed to the Starliner program despite the delays. The agency’s continued support highlights the necessity of having multiple providers for astronaut transportation, ensuring operational resilience. Boeing’s experience with Starliner underscores the complexities of managing fixed-price aerospace projects and the need for strategic adjustments in future contracts.
Industry Implications
The contrasting fortunes of Boeing and SpaceX illustrate the competitive landscape of the aerospace sector. SpaceX’s track record with Crew Dragon reinforces its reliability and may influence future contract decisions. Boeing, meanwhile, must address its current challenges to restore confidence and secure future opportunities in the space industry.
Boeing’s Starliner program faces significant obstacles, with recent delays and financial losses complicating its progress. As Boeing reevaluates its approach and strives to resolve technical issues, it aims to apply lessons learned to future projects. SpaceX’s ongoing success demonstrates the effectiveness of well-managed fixed-price contracts. The future of astronaut transportation services remains a critical focus for NASA and its commercial partners as they work to advance human spaceflight.
