Boeing’s CST-100 Starliner spacecraft, developed as part of NASA’s Commercial Crew Program, has faced a series of setbacks, delays, and financial losses since its inception. The spacecraft, designed to transport astronauts to and from the International Space Station (ISS), has struggled to meet expectations, leaving Boeing with difficult decisions to make regarding the program’s future.

Original Contract, Milestones, and Financials

The development of Boeing’s Starliner spacecraft began under NASA’s Commercial Crew Program, which aimed to foster private sector involvement in space transportation.

Contract Award and Initial Terms

In September 2014, NASA awarded Boeing a fixed-price contract worth $4.2 billion to develop the CST-100 Starliner spacecraft. This contract included:

• Development and testing of the Starliner spacecraft
• Certification for human spaceflight
• 6 operational flights to the ISS

The contract’s fixed-price nature meant that Boeing would be responsible for any cost overruns, a departure from traditional cost-plus contracts in the aerospace industry.

Key Milestones and Timeline

Boeing’s original timeline for Starliner included several key milestones:

1. Pad abort test: Successfully completed in November 2019
2. Uncrewed Orbital Flight Test (OFT): Initially planned for 2017, first attempted in December 2019, followed by a second attempt in May 2022
3. Crewed Flight Test (CFT): Originally targeted for 2018, launched in June 2024
4. First operational mission: Initially planned for 2017, now delayed to at least August 2025

Financial Impact and Cost Overruns

The Starliner program has resulted in significant financial losses for Boeing:

• As of July 2024, Boeing has incurred approximately $1.6 billion in charges against earnings related to Starliner.
• The company took a $125 million loss on the program in the second quarter of 2024 alone.

Comparison to SpaceX

Boeing’s struggles with Starliner are particularly notable when compared to SpaceX’s progress:

• SpaceX received a $2.6 billion contract, significantly less than Boeing’s $4.2 billion.
• SpaceX’s Crew Dragon spacecraft has been operational since 2020, completing multiple crewed missions to the ISS.
• While Boeing continues to face delays and technical challenges, SpaceX has already fulfilled its initial contract for six operational flights.

The stark contrast between the two companies’ performances under the Commercial Crew Program has raised questions about Boeing’s ability to compete in the new era of commercial spaceflight and the effectiveness of fixed-price contracts for complex aerospace projects.

A Series of Setbacks and Delays

The Starliner program has been plagued by various technical issues and delays throughout its development:

• The first uncrewed test flight in December 2019 encountered major programming errors, preventing the spacecraft from reaching the ISS.
• The second uncrewed test flight in May 2022, while successful, was delayed due to issues with the spacecraft’s valves.
• During the Crew Flight Test (CFT) mission in June 2024, Starliner experienced several problems, including helium leaks and the failure of five thrusters in the maneuvering system. These issues resulted in NASA’s decision to bring astronauts home on a SpaceX Dragon capsule, which is discussed further in the next section.

These setbacks have led to significant delays in the program, with Starliner falling seven years behind schedule. In contrast, SpaceX’s Crew Dragon spacecraft, developed under the same NASA program, has been successfully transporting astronauts to the ISS since 2020.

NASA’s Decision and Its Implications

NASA’s decision to bring the Starliner astronauts home on a SpaceX Dragon capsule marks a significant turning point in the Commercial Crew Program and highlights ongoing challenges with Boeing’s spacecraft development. This choice underscores NASA’s commitment to crew safety above all else, even at the cost of potential embarrassment to Boeing and further delays to the Starliner program.

The decision has several key implications:

• Extended mission: Astronauts Wilmore and Williams will now spend nearly nine months in space instead of their originally planned week-long mission, staying on the ISS until February 2025.
• SpaceX’s increased role: By relying on SpaceX for both the outbound and return journeys of these astronauts, NASA further cements SpaceX’s position as the primary commercial crew provider.
• Financial impact: Boeing’s Starliner program, already badly over budget, faces additional costs and potential contract implications from this setback.
• Future of Starliner: While NASA remains committed to certifying Starliner for regular crew rotations, this decision raises questions about the timeline and additional work required to achieve that goal.
• ISS operations: The extended stay of Wilmore and Williams will impact crew rotations and research schedules on the space station, requiring adjustments to planned activities and resources.

NASA Administrator Bill Nelson emphasized that this decision reflects the agency’s priority on safety, stating, “Spaceflight is risky, even at its safest and most routine. A test flight, by nature, is neither safe, nor routine”. This approach aligns with NASA’s post-Columbia focus on risk management and crew safety, even when it means making difficult operational decisions.

NASA’s Investment in Boeing’s Starliner

NASA has invested significant amounts of money into Boeing’s CST-100 Starliner program as part of the Commercial Crew Program (CCP). Here’s a breakdown of the key investments:

Initial Awards (2010-2012):

• NASA started by investing in several companies as part of the Commercial Crew Development (CCDev) program.
• In the first round (CCDev 1) in 2010, Boeing received $18 million.
• In the second round (CCDev 2) in 2011, Boeing received an additional $92.3 million.

Commercial Crew Integrated Capability (CCiCap) Award (2012):

• Boeing was awarded $460 million as part of the CCiCap agreement. This funding helped Boeing advance the design of the Starliner.

Commercial Crew Transportation Capability (CCtCap) Award (2014):

• NASA awarded Boeing a $4.2 billion contract in 2014 to continue the development of the Starliner and to provide transportation services to the ISS. This was one of the two major contracts awarded under the CCtCap program, with the other going to SpaceX for its Crew Dragon vehicle.

Additional Payments for Post-Certification Missions:

• NASA agreed to pay $90 million per seat for post-certification missions on the Starliner capsule. This included payments for six crewed missions after Starliner was certified to fly astronauts to the ISS.

Estimated Total Investment

Taking into account the various awards, the total NASA investment in Boeing’s Starliner program is estimated to be over $5 billion. This figure includes the initial development funds, the major contract awarded under CCtCap and additional payments for post-certification missions.

Overall, NASA’s investment in the Boeing Starliner represents a major commitment to developing a diverse and competitive commercial space transportation market.

Uncertain Future and Potential Options

The future of the Starliner program remains uncertain, with Boeing facing several potential options:

• Continue the program: Boeing could choose to continue investing in Starliner, addressing the technical issues and working towards certification. However, this option may require additional test flights, which could cost the company an estimated $400 million.
• Scale back involvement: Boeing could fulfill its obligations to NASA for a limited number of flights to the ISS and then reevaluate its long-term commitment to the program.
• Collaborate with NASA: Boeing and NASA could work together to find a solution that keeps Starliner in the Commercial Crew Program while addressing some of Boeing’s financial concerns, such as converting a test flight into a cargo mission.
• Exit the program: Although unlikely given Boeing’s legacy in space exploration, the company could potentially back out of its contract with NASA if the financial burden becomes too great.

NASA has expressed its desire for Starliner to fly again, as the agency has invested $5 billion in the program and plans to have multiple spacecraft available for ISS missions. However, with SpaceX’s Crew Dragon spacecraft proving reliable and cost-effective, it remains to be seen how much NASA will rely on Starliner in the future.

Summary

The troubled history of Boeing’s Starliner spacecraft has left the company facing significant financial losses and difficult decisions regarding the program’s future. While NASA remains hopeful that Starliner will overcome its challenges and contribute to the Commercial Crew Program, Boeing must carefully weigh its options to balance its commitment to space exploration with the financial realities of the project. The coming months will be critical in determining the fate of the Starliner program and Boeing’s role in the future of human spaceflight.