Boeing forced to take another $250 million charge on Starliner
Because of the continuing problems getting its Starliner manned capsule operational, Boeing has now taken another $250 million charge on the project, raising the total spent of its own money to $1.85 billion.
The company’s original fixed-price contract with NASA to deliver the capsule was $4.2 billion. The bulk of that won’t be paid until Starliner begins flying astronauts commercially, and NASA has now delayed that until 2026 at the earliest. The company’s new CEO, Kelly Ortberg, has now made it clear that he is focused on imposing changes to fix the bankrupt engineering management culture that has caused it so many failures in so many of its recent projects, not just Starlner. In his remarks announcing the company’s third quarter results, he said this:
The trust in our company has eroded. We’re saddled with too much debt. We’ve had serious lapses in our performance across the company which have disappointed many of our customers.
In addressing these issues Ortberg listed a whole range of changes, many of which focused on getting managers more closely involved in design and construction, or as he said, management needs “to be on the factory floors, in the back shops and in our engineering labs.”
Whether he will succeed is unknown. Its factory workers today rejected a new contract offer, continuing their now six-week strike that has halted work on company’s airplane business. In addition, Boeing reported a loss of $6 billion in that third quarter report.
One thing Ortbeg did make clear this week however: Boeing is not walking away from its Starliner contract with NASA. At a minimum it will complete that initial fixed price contract. Whether it will go on to fly more Starliner missions however Ortberg left open. I suspect he remains in negotiation with NASA over this issue.
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Fourteen years ago I wrote that SLS and Orion were a bad ideas, a waste of money, would be years behind schedule, and better replaced by commercial private enterprise. Even today NASA and Congress refuse to recognize this reality.
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Because of the continuing problems getting its Starliner manned capsule operational, Boeing has now taken another $250 million charge on the project, raising the total spent of its own money to $1.85 billion.
The company’s original fixed-price contract with NASA to deliver the capsule was $4.2 billion. The bulk of that won’t be paid until Starliner begins flying astronauts commercially, and NASA has now delayed that until 2026 at the earliest. The company’s new CEO, Kelly Ortberg, has now made it clear that he is focused on imposing changes to fix the bankrupt engineering management culture that has caused it so many failures in so many of its recent projects, not just Starlner. In his remarks announcing the company’s third quarter results, he said this:
The trust in our company has eroded. We’re saddled with too much debt. We’ve had serious lapses in our performance across the company which have disappointed many of our customers.
In addressing these issues Ortberg listed a whole range of changes, many of which focused on getting managers more closely involved in design and construction, or as he said, management needs “to be on the factory floors, in the back shops and in our engineering labs.”
Whether he will succeed is unknown. Its factory workers today rejected a new contract offer, continuing their now six-week strike that has halted work on company’s airplane business. In addition, Boeing reported a loss of $6 billion in that third quarter report.
One thing Ortbeg did make clear this week however: Boeing is not walking away from its Starliner contract with NASA. At a minimum it will complete that initial fixed price contract. Whether it will go on to fly more Starliner missions however Ortberg left open. I suspect he remains in negotiation with NASA over this issue.
The support of my readers through the years has given me the freedom and ability to analyze objectively the ongoing renaissance in space, as well as the cultural changes -- for good or ill -- that are happening across America. Four years ago, just before the 2020 election I wrote that Joe Biden's mental health was suspect. Only in this year has the propaganda mainstream media decided to recognize that basic fact.
Fourteen years ago I wrote that SLS and Orion were a bad ideas, a waste of money, would be years behind schedule, and better replaced by commercial private enterprise. Even today NASA and Congress refuse to recognize this reality.
In 2020 when the world panicked over COVID I wrote that the panic was unnecessary, that the virus was apparently simply a variation of the flu, that masks were not simply pointless but if worn incorrectly were a health threat, that the lockdowns were a disaster and did nothing to stop the spread of COVID. Only in the past year have some of our so-called experts in the health field have begun to recognize these facts.
Your help allows me to do this kind of intelligent analysis. I take no advertising or sponsors, so my reporting isn't influenced by donations by established space or drug companies. Instead, I rely entirely on donations and subscriptions from my readers, which gives me the freedom to write what I think, unencumbered by outside influences.
Please consider supporting my work here at Behind the Black.
You can support me either by giving a one-time contribution or a regular subscription. There are five ways of doing so:
1. Zelle: This is the only internet method that charges no fees. All you have to do is use the Zelle link at your internet bank and give my name and email address (zimmerman at nasw dot org). What you donate is what I get.
2. Patreon: Go to my website there and pick one of five monthly subscription amounts, or by making a one-time donation.
3. A Paypal Donation:
5. Donate by check, payable to Robert Zimmerman and mailed to
Behind The Black
c/o Robert Zimmerman
P.O.Box 1262
Cortaro, AZ 85652
You can also support me by buying one of my books, as noted in the boxes interspersed throughout the webpage or shown in the menu above. And if you buy the books through the ebookit links, I get a larger cut and I get it sooner.
It seems Ortberg has handed Boeing a bullet to bite on as he begins performing some much-needed surgery – perhaps even including some amputations – without benefit of anesthesia.