The huge cost of Boeing Starliner has been revealed!

Boeing’s Starliner commercial crew program is plagued by challenges that have doubled the costs of SpaceX’s Crew Dragon program. Boeing stated in a statement on Wednesday that it suffered a loss of 1.6 billion dollars due to problems in the Starliner program. The main reasons for this damage include constant postponement of the program and additional work.

Massive cost increase in Boeing Starliner program

The company announced a total loss of $1.6 billion due to delays and problems in the Starliner program since 2016. This loss of the company occurred because the Crew Flight Test, the program’s first flight with an astronaut, was still ongoing. Within the scope of the $4.2 billion contract it received from NASA in 2010, Boeing was expected to have the Starliner capsule ready for flight with astronauts by the end of 2017. However, Crew Flight Test did not occur until June 5, 2024.

Boeing’s financial loss stems from the structure of fixed-price contracts. When NASA selected Boeing and SpaceX to develop Starliner and Crew Dragon spacecraft for crewed missions, it entered into fixed-price agreements with both contractors. These agreements ensure that cost overruns are borne by the contractor, which has left Boeing facing new costs for every delay in the Starliner program.

SpaceX has received NASA contracts totaling $3.1 billion for the Crew Dragon program and has completed all six crewed flights under those contracts. Boeing, on the other hand, is at least a year away from starting operational service with Starliner. Due to delays experienced by Boeing, NASA extended SpaceX’s commercial crew contract to cover eight additional round-trip flights through the late 2020s.

This situation reveals SpaceX’s success in fixed-price contracts and Boeing’s difficulties in similar contracts. SpaceX has also had success with fixed-price contracts for some items within NASA’s Artemis program. For example, NASA selected SpaceX and Blue Origin on fixed-price contracts to develop manned lunar landers.

The first crew mission in Boeing’s Starliner program is expected to end in August. In this mission, NASA astronauts Butch Wilmore and Suni Williams will return from the International Space Station. However, while the Starliner test flight was initially expected to last at least eight days, it has been docked at the station for more than 50 days. During this time, engineers conducted research due to problems in the spacecraft’s propulsion system.

Boeing will work to address helium leaks and overheating thrusters on a long-term basis on Starliner’s future missions. NASA officials had hoped to formally certify the capsule for regular six-month missions by the end of the year. However, with the announcement made last week, the Starliner-1 mission was postponed for six months to solve these problems.