NASA announced on Saturday that it would not be utilizing a faulty Boeing capsule to bring two stranded astronauts back to Earth, marking another setback for the company. The decision was made due to safety concerns regarding the Boeing Starliner capsule, which has experienced issues with its propulsion system. Instead of risking the astronauts’ safety, NASA opted to keep them in space until February.
Boeing has faced a series of challenges that have tarnished its once-stellar reputation as a symbol of American engineering excellence. Following the fatal crashes of two 737 Max airliners in 2018 and 2019, along with subsequent safety incidents, Boeing has been under intense scrutiny. The recent troubles with the Starliner capsule only add to the company’s woes.
While the space capsule program represents only a small portion of Boeing’s overall revenue, the company’s reputation has taken a hit. Analysts like Richard Aboulafia note that Boeing has faced significant financial losses in recent years, exceeding $25 billion since 2018 due to a downturn in its aircraft-manufacturing business.
Boeing’s defense and space division, which had previously provided a buffer against losses in the commercial aircraft sector, has also faced challenges since 2022. Issues with fixed-price contracts for projects with NASA and the Pentagon, including the construction of new Air Force One jets, have led to significant cost overruns.
Despite these setbacks, Boeing’s new CEO, Robert “Kelly” Ortberg, is seen as a positive change in leadership, with hopes that his outsider perspective and experience in the aerospace industry will help steer the company in a more positive direction. The defense division of Boeing has recently secured lucrative contracts, such as supplying Apache helicopters to foreign governments and selling F-15 fighter jets to Israel.
Analysts believe that while Boeing may face continued challenges in the near future, particularly in regaining profitability in the defense and space sector, the company’s strong history and potential under new leadership may help restore confidence among customers and investors.
