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.
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.