By Joey Roulette

NASA’s Boeing Starliner Setback

WASHINGTON (Reuters) – NASA’s decision to send Boeing’s Starliner capsule home without astronauts follows years of missteps by the planemaker in its space business, raising doubts over its future, analysts say.

The mission was supposed to be pivotal for Starliner, transporting NASA astronauts Butch Wilmore and Suni Williams to the International Space Station (ISS) for about eight days. Due to ongoing problems, the mission has been delayed for eight months. Starliner’s propulsion system malfunctioned, leading NASA to deem the thrusters unsafe for return. Consequently, the astronauts will be transported back in a SpaceX Crew Dragon capsule next year, marking another setback for Boeing against Elon Musk’s dominant space company.

This mission was meant to finalize testing before NASA could certify Starliner for regular flights. Boeing’s new CEO, Kelly Ortberg, faces a tough choice: continue investing in Starliner, which analysts doubt will be profitable, or dismantle the capsule business to restore its core aviation reputation.

Ongoing Challenges

Boeing has been criticized for being years behind schedule and billions over budget on NASA’s Space Launch System (SLS) rocket, essential for the U.S. moon program. The company is also attempting to sell its joint rocket launching firm with Lockheed Martin.

NASA’s administrator Bill Nelson expressed confidence in Starliner’s future, but this assurance does not guarantee commitment if issues persist. Boeing declined to comment on its continued involvement in the program.

Competitive Landscape

Boeing is seen as a critical alternative to SpaceX and has expended over half of its $4.5 billion NASA contract since 2014 without certification for Starliner. Following delays, NASA has purchased additional Crew Dragon missions from SpaceX, inflating its contract to $4.9 billion.

Boeing may be forced to redo astronaut missions to obtain NASA certification. NASA’s space operations chief mentioned various options for moving forward with Starliner.

Workforce and Quality Control Issues

Boeing’s space unit has seen skilled employees leave for SpaceX and Blue Origin, exacerbating problems with their supply chain. Persistent issues with Starliner’s propulsion system were identified shortly before a recent launch. An ongoing leak in the helium seal was deemed low-risk initially but highlighted ongoing design vulnerabilities.

Boeing’s SLS rocket project also faces quality control criticisms, with claims of an inexperienced workforce. Although Boeing disputes these allegations, the company’s space divisions are under scrutiny.

Richard Aboulafia, an aerospace analyst, suggests Ortberg might consider a strategic shift for Starliner, potentially recommending its sale, despite the risks tied to the space sector.