Boeing has reported another financial setback on its CST-100 Starliner commercial crew program, adding a $125 million charge as it works to prepare the spacecraft for its delayed return from the International Space Station (ISS). This update comes from a recent filing with the U.S. Securities and Exchange Commission, reflecting the company’s second quarter financial results.
The anomalies and delayed return of two American astronauts aboard the Boeing Starliner have cost the company $125 million so far.
That’s the cost of 2 seats on SpaceX Dragon, btw. pic.twitter.com/gYsLrvJlh4
— Space Sudoer (@spacesudoer) July 31, 2024
The additional charge brings Boeing’s total losses on the Starliner program to approximately $1.6 billion, a significant portion of which has accrued since a flawed uncrewed test flight in late 2019. In 2023 alone, Boeing took a $288 million loss on Starliner, including a $257 million charge in the second quarter after delaying the Crew Flight Test (CFT) mission to 2024.
During a recent earnings call, Boeing did not directly discuss the Starliner program but did address the broader financial impacts, noting $1 billion in charges on fixed-price programs within its Defense and Space business unit. These charges include work on the KC-46A tanker aircraft and the VC-25B aircraft, the future Air Force One.
Dave Calhoun, Boeing’s outgoing chief executive, acknowledged the disappointing results, particularly the losses associated with fixed-price development programs. He expressed caution about taking on similar future contracts, emphasizing the lessons learned and the importance of maintaining contracting discipline for upcoming opportunities.
Boeing, in its quarterly report, has announced that the Starliner’s return to Earth has been postponed to allow for additional testing of propulsion system irregularities. These delays have resulted in a financial impact of $125 million for the company.
📷 @NASA pic.twitter.com/no4cECH1fj— SpaceX FrontPage (@SpaceXFP) July 31, 2024
Boeing has not ruled out the possibility of further losses on the Starliner program, especially with the first operational mission, Starliner-1, delayed from February 2025 to no earlier than August 2025. The company indicated that there is still a risk of additional financial hits in future periods.
As Boeing and NASA work to wrap up the CFT mission, they recently conducted a series of tests on the spacecraft. On July 27, controllers fired 27 reaction control system (RCS) thrusters on the Starliner while it was still docked at the ISS. These tests aimed to confirm the thrusters’ performance after nearly two months in space, following issues encountered during the spacecraft’s approach to the station in June.
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*BOEING REPORTS WIDER-THAN-EXPECTED LOSS, WEAKER REVENUE; ANNOUNCES NEW CEO $BA pic.twitter.com/GbyYRFzN3U
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Preliminary results from the tests show that the thrusters are performing at preflight levels based on thrust and chamber pressure. However, NASA and Boeing have not yet set a date for Starliner’s return. NASA noted that engineers are still reviewing data from ground tests of the RCS thrusters, after which an agency-level review will be held to determine the return date.
Boeing stated that preparations for the spacecraft’s return are ongoing, including conducting an integrated simulation involving ground controllers and CFT astronauts Butch Wilmore and Suni Williams. The ISS’s robotic arm has also inspected the exterior of Starliner, a standard procedure for visiting vehicles before departure. Boeing aims to support potential return dates throughout August, depending on the outcomes of these preparations and reviews.
Key Points:
- Boeing reported an additional $125 million charge on its CST-100 Starliner program due to delays in the Crew Flight Test (CFT) mission, bringing total losses to around $1.6 billion.
- The company’s financial struggles with Starliner stem from a flawed initial uncrewed test flight in late 2019 and continued delays.
- Boeing’s latest losses were part of $1 billion in charges on fixed-price contracts, impacting its Defense and Space business unit, including the KC-46A tanker and VC-25B aircraft.
- The first operational mission, Starliner-1, has been delayed from February 2025 to August 2025, with Boeing acknowledging potential future losses.
- Boeing and NASA are working to finalize the CFT mission, performing thruster tests and preparing for Starliner’s return, though a specific return date has not been set.
James Kravitz – Reprinted with permission of Whatfinger News
