Produced by: Tarun Mishra Designed by: Manoj Kumar
Boeing has announced an additional charge of $250 million against earnings for its CST-100 Starliner commercial crew program.
The announcement comes as Boeing’s new CEO, Kelly Ortberg, emphasizes the company’s commitment to continue its work on troubled programs like Starliner.
In a filing with the U.S. Securities and Exchange Commission on October 23, Boeing attributed the charge to schedule delays and increased testing and certification costs.
This latest charge follows a $125 million loss the company reported in the second quarter, raising total losses on Starliner to approximately $1.85 billion.
The ongoing losses have sparked questions about Boeing’s ability to eventually profit from the Starliner program and whether it might consider terminating it.
During a recent earnings call, Ortberg acknowledged the challenges of managing fixed-price contracts and emphasized the need to better understand and mitigate risks associated with these projects.
When asked if Boeing would consider walking away from unprofitable fixed-price programs, Ortberg firmly rejected that option, stating it was not viable for the company.
Ortberg indicated that Boeing is reviewing its overall business strategy, suggesting that the company might discontinue work in certain areas outside its core commercial aviation and defense sectors to improve efficiency.