The recent announcement from NASA that it will not be using Boeing’s troubled capsule to bring back two stranded astronauts is another blow to the struggling company. While the financial impact of this decision may be minimal, Boeing’s reputation continues to suffer.
Boeing, once a symbol of American engineering excellence, has faced intense scrutiny following the 737 Max crashes that claimed 346 lives. The safety of Boeing’s products was called into question again after incidents involving the Max aircraft, including a panel blowing out during a flight earlier this year.
Due to ongoing issues with the propulsion system of the Starliner capsule, NASA has opted to keep the astronauts in space until February rather than risk using the capsule for their return journey. NASA Administrator Bill Nelson emphasized that safety was the top priority in this decision, despite Boeing’s assurances of the capsule’s safety based on recent tests.
Although the space capsule program represents only a small portion of Boeing’s revenue, the importance of carrying astronauts is significant for the company’s reputation, similar to their work on Air Force One jets.
Aerospace analyst Richard Aboulafia described the situation as another setback for Boeing, but suggested that the company has the resilience to overcome it. Boeing has faced major financial losses since the 737 Max crashes, with the defense and space division initially providing some stability until recent struggles.
Boeing’s defense and space division has encountered challenges of its own, with fixed-price contracts for projects like new Air Force One jets exceeding the company’s estimates, resulting in substantial losses. Despite these setbacks, Boeing remains committed to finishing current projects and learning from past mistakes.
Boeing’s struggle with fixed-price contracts extends to the Starliner program, which faced technical setbacks, delays, and cost overruns compared to SpaceX’s successful missions to the ISS. The recent issues have caused additional financial losses, further impacting Boeing’s bottom line.
Aboulafia predicts that the financial impact of the Starliner setbacks may be relatively minor for Boeing in the long term, considering the company’s overall revenue. With new leadership in place, Boeing aims to restore confidence in its capabilities and relationships with customers like NASA.
The appointment of Robert “Kelly” Ortberg as CEO brings hope for positive change at Boeing, as he brings a fresh perspective from his previous aerospace experience. With recent wins in the defense division, Boeing is positioned for growth, but it may take time to regain profitability in that sector.
Overall, despite the challenges faced by Boeing in recent years, there is optimism for the future under new leadership and a focus on safety, innovation, and customer relationships.
—David Koenig, Associated Press business writer
