WASHINGTON, USA: NASA’s recent decision to forego using Boeing’s Starliner capsule to return two stranded astronauts to Earth marks another significant setback for Boeing, a company once celebrated for its engineering prowess.
The decision underscores ongoing concerns about the safety and reliability of Boeing’s space ventures, despite the company’s assurances that the Starliner is safe following recent tests.
The Starliner program, though a small part of Boeing’s overall revenue, carries substantial reputational weight. Boeing’s troubles began with the 737 Max crashes in 2018 and 2019, which resulted in the deaths of 346 people and tarnished the company’s reputation. The recent NASA decision further compounds these issues, especially in light of ongoing technical problems with the Starliner’s propulsion system.
NASA’s administrator, Bill Nelson, emphasized that the decision to return the Starliner capsule to Earth empty was based on a “commitment to safety.” Despite this, Boeing had insisted that the capsule was ready for the task, following successful thruster tests. However, the risks associated with potential failures were deemed too great, leading to the postponement of the astronauts’ return until February.
Financially, the impact of the Starliner issues on Boeing may be modest. The space capsule program is a minor part of Boeing’s revenue stream, and even the $4.2 billion contract with NASA, though significant, is relatively small compared to the company’s overall sales, which reached $78 billion last year. Nonetheless, Boeing has already incurred significant losses on the Starliner project, with a $125 million loss reported through June 30, pushing cumulative cost overruns to over $1.5 billion.
Despite these challenges, Boeing’s future in defence and aerospace remains strong. The company has recently secured several large contracts, including deals to provide Apache helicopters, F-15 fighter jets, and prototype surveillance planes. Moreover, with new leadership under CEO Robert “Kelly” Ortberg, there is optimism that Boeing can navigate its current difficulties and rebuild its reputation.
The Starliner setback is a blow to Boeing’s image, particularly in the high-stakes arena of space exploration, the company’s broader business prospects remain intact. The true test will be whether Boeing can restore confidence in its brand and deliver on its commitments in both the commercial and defence sectors.
