Boeing’s Starliner commercial crew program is struggling with challenges that have doubled the costs of SpaceX’s Crew Dragon program. Boeing announced on Wednesday that it has suffered a loss of $1.6 billion due to problems in the Starliner program. The main reasons for this loss include the program’s constant delays and additional work.
Boeing Starliner program has suffered a huge cost increase
The company has announced a total loss of $1.6 billion due to delays and problems in the Starliner program since 2016. The company’s loss occurred because the program’s first astronaut flight, the Crew Flight Test, is still ongoing. Under a $4.2 billion contract from NASA in 2010, Boeing was expected to have its Starliner capsule ready for flight with astronauts by the end of 2017. However, Crew Flight Test did not occur until June 5, 2024.
Boeing’s financial losses stem from the structure of fixed-price contracts. When NASA selected Boeing and SpaceX to develop the Starliner and Crew Dragon spacecraft for crewed missions, it entered into fixed-price agreements with both contractors. These agreements ensure that cost overruns are borne by the contractor, which has left Boeing with new costs for each delay in the Starliner program.
SpaceX has received a total of $3.1 billion in NASA contracts for the Crew Dragon program and has completed all six crewed flights under these contracts. Boeing is at least a year away from starting operational service with the Starliner. Due to Boeing’s delays, NASA has extended SpaceX’s commercial crew contract to cover eight additional round-trip flights through the late 2020s.
This highlights SpaceX’s success with fixed-price contracts and Boeing’s difficulties with similar contracts. SpaceX has also been successful with fixed-price contracts for some items under NASA’s Artemis program. For example, NASA selected SpaceX and Blue Origin with fixed-price contracts to develop human lunar landers.
Boeing’s first crewed mission in the Starliner program is expected to end in August. This mission will see NASA astronauts Butch Wilmore and Suni Williams return from the International Space Station. However, the Starliner test flight was initially expected to last at least eight days, but has been docked at the station for more than 50 days. During this time, engineers have been investigating problems with the spacecraft’s propulsion system.
Boeing will work on long-term solutions to helium leaks and overheating thrusters on future Starliner missions. NASA officials had hoped to officially certify the capsule for regular six-month missions by the end of the year. However, last week, the Starliner-1 mission was postponed by six months to resolve these issues.
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