### Boeing’s Starliner Program: Rising Losses and Ambiguous Prospects
In recent times, Boeing’s Starliner spacecraft has emerged as a center of both operational hurdles and financial pressure for the aerospace behemoth. Although it constitutes a minor element of Boeing’s broader operations, the Starliner initiative has attracted considerable scrutiny owing to its prominent affiliation with NASA’s Commercial Crew Program. Nevertheless, the program has suffered from delays, technical complications, and escalating financial deficits, casting doubts on its sustainability in the long run.
#### Financial Troubles
Boeing’s economic difficulties regarding the Starliner initiative were underscored during a recent earnings call, where the company disclosed an astounding loss of $6.2 billion for the previous quarter. While Boeing’s new CEO, Kelly Ortberg, vowed to turn the company around, the Starliner program was conspicuously overlooked in his comments. This exclusion is significant, considering that Boeing has now racked up $1.85 billion in losses related to the Starliner endeavor, with an extra $250 million recorded in the latest quarterly update.
Boeing manages the Starliner program under a fixed-price agreement with NASA, implying that the company shoulders the financial repercussions of any budget overruns. Although this setup benefits NASA, it has been a notable financial strain for Boeing. The company’s SEC disclosure grimly noted, “Risk remains that we may report additional losses in future periods.”
#### Technical Issues and Setbacks
The Starliner project has encountered many technical obstacles over the years. Most recently, a test flight in September 2024 ended unsuccessfully when the spacecraft returned to Earth uncrewed due to challenges with overheating thrusters and helium leaks. NASA, putting astronaut safety first, chose to have the two astronauts aboard the International Space Station (ISS) return on a SpaceX Dragon instead.
Initially, Boeing advocated for an astronaut return on the Starliner, but NASA ultimately rejected this proposal. The spacecraft did manage to land safely in New Mexico, but the technical difficulties exposed during the mission will necessitate considerable effort to rectify. Boeing has conceded that addressing these complications could consume several months, potentially extending into 2025 or further down the line, and may cost hundreds of millions of dollars to resolve.
#### A New CEO and Strategic Evaluation
Kelly Ortberg, who became Boeing’s CEO in August 2024, has hinted that the company may need to revisit its portfolio, including ventures like Starliner. Ortberg proposed that Boeing might need to “do less and do it better” rather than overextending itself across various projects. This statement has sparked conjecture that Boeing could be contemplating downsizing or even withdrawing from the Starliner initiative.
Ortberg’s predecessor, Dave Calhoun, had previously indicated that Boeing would refrain from entering into fixed-price development contracts moving forward, a choice seemingly motivated by the financial strain caused by initiatives like Starliner. Ortberg resonated with this viewpoint, recognizing that Boeing had “signed up to some things that are problematic.”
#### NASA’s Involvement and Starliner’s Future
Despite the hurdles, NASA remains dedicated to the Starliner initiative, at least for the time being. The agency has collaborated with Boeing to develop the spacecraft as part of its Commercial Crew Program, which aims to supply the U.S. with two independent crew transportation systems to the ISS. SpaceX’s Crew Dragon has already completed nine operational missions for NASA, leaving Starliner as the alternative option.
NASA has yet to determine whether Boeing will have to perform another test flight before the spacecraft can be authorized for operational missions. However, reports suggest the agency is contemplating using Starliner for a cargo mission to the ISS in 2025 to confirm that the essential updates to the spacecraft’s propulsion system have been implemented.
Even as NASA advances with plans that rely on Boeing to persist with Starliner, the timeline for operational missions remains unclear. Astronauts are still preparing for the inaugural operational Starliner mission, but this flight is unlikely to happen before late 2025 or potentially 2026. Meanwhile, NASA has assigned a crew to a SpaceX Dragon mission set for July 2025, a slot initially planned for Boeing.
#### Boeing’s Quandary: To Persist or Withdraw?
Boeing finds itself at a pivotal moment with the Starliner initiative. While Ortberg has noted that abandoning troubled contracts isn’t a viable route, he has also indicated that Boeing may reassess its participation in certain programs as they transition through contract phases. This could offer Boeing a chance to reconsider its dedication to Starliner without violating its commitments to NASA.
The future of the Starliner program becomes even more complex with the anticipated retirement of the ISS, scheduled for 2030. With only six operational Starliner missions planned, and SpaceX already managing crew transport responsibilities, it remains uncertain whether Boeing will fulfill all its contracted flights before the ISS is decommissioned.
#### Conclusion: An Uncertain Horizon
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