Boeing’s total losses due to Starliner now equal $1.5 billion
According to CNBC, the total losses for Boeing due to its on-going and persistent engineering problems flying its manned Starliner capsule now equal almost $1.5 billion, not $1.1 billion as estimated yesterday.
Since 2014, when NASA awarded Boeing with a nearly $5 billion fixed-price contract to develop Starliner, the company has recorded losses on the program almost every year. The charges total $1.47 billion, according to its annual reports and the company’s most recent quarterly filing.
The annual losses have ranged from $57 million in 2018 to $489 million in 2019.
At this moment, the only way Boeing can make a profit on Starliner is to garner a lot of other tourist customers, outside NASA. The problem is that SpaceX’s already operational fleet of four manned Dragon capsules has captured that market, with a capsule and rocket that has demonstrated remarkable reliability. To convince others to fly on Starliner it will have to fly it a lot beforehand in order to convince others its problems have really been fixed. This will take time and money, which will only add to the red ink.