Boeing budgets for extra unmanned Starliner test
Capitalism in space: Boeing has put aside $410 million in its next budget to pay for a possible second unmanned Starliner test, just in case NASA demands it.
The company said in its fourth quarter earnings release Jan. 29 that it was taking the charge “primarily to provision for an additional uncrewed mission for the Commercial Crew program, performance and mix.” It noted that NASA was still reviewing data from the Orbital Flight Test (OFT) mission in December that was cut short, without a docking at the International Space Station, by a timer problem.
“NASA is in the process of reviewing the data from our December 2019 mission,” Greg Smith, chief financial officer at Boeing, said in an earnings call. “NASA’s approval is required to proceed with a flight test with astronauts on board. Given this obligation, we are provisioned for another uncrewed mission.” Neither he nor Boeing’s new chief executive, David Calhoun, elaborated on that during the call, which was devoted primarily to issues related to the company’s 737 MAX airliner.
It might be too early to say, but my instincts are telling me that this decision, made very quickly, is a very good sign for Boeing. It suggests that Calhoun doesn’t fool around, that he takes very seriously the need for Boeing to serve its customers. In the past Boeing would have lobbied NASA, its customer, to pay for a possible additional flight (something NASA is not required to do according to the contract). Now Boeing instead makes it clear that it has accepted the responsibility of that additional flight, right off the bat, something that any good and healthy company should do.
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Capitalism in space: Boeing has put aside $410 million in its next budget to pay for a possible second unmanned Starliner test, just in case NASA demands it.
The company said in its fourth quarter earnings release Jan. 29 that it was taking the charge “primarily to provision for an additional uncrewed mission for the Commercial Crew program, performance and mix.” It noted that NASA was still reviewing data from the Orbital Flight Test (OFT) mission in December that was cut short, without a docking at the International Space Station, by a timer problem.
“NASA is in the process of reviewing the data from our December 2019 mission,” Greg Smith, chief financial officer at Boeing, said in an earnings call. “NASA’s approval is required to proceed with a flight test with astronauts on board. Given this obligation, we are provisioned for another uncrewed mission.” Neither he nor Boeing’s new chief executive, David Calhoun, elaborated on that during the call, which was devoted primarily to issues related to the company’s 737 MAX airliner.
It might be too early to say, but my instincts are telling me that this decision, made very quickly, is a very good sign for Boeing. It suggests that Calhoun doesn’t fool around, that he takes very seriously the need for Boeing to serve its customers. In the past Boeing would have lobbied NASA, its customer, to pay for a possible additional flight (something NASA is not required to do according to the contract). Now Boeing instead makes it clear that it has accepted the responsibility of that additional flight, right off the bat, something that any good and healthy company should do.
Readers!
Please consider supporting my work here at Behind the Black. Your support allows 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. 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. Only now does it appear that Washington might finally 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.
You can support me either by giving a one-time contribution or a regular subscription. There are four 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 or subscription:
4. 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 $410 for a test launch? That seems like a good deal for NASA. (Still cheaper than SLS). Seems like this suggests what a real launch might cost. (Hard to imagine $2-300 million due to test vs real flight.)
Too bad there is no competitor offering much cheaper rates. Shame really.
Also, of note, Boeing posted a loss this quarter.
First since 1997.
geoffc,
You wrote: “$410 for a test launch? … Seems like this suggests what a real launch might cost.”
There is already an estimate that each Starliner seat will cost NASA $90 million, which means that Boeing is getting around $360 million per flight. As you noted, the additional tens of millions of dollars covers expenses related to testing.