NASA's recent decision not to use Boeing's troubled Starliner capsule to bring back two astronauts from the International Space Station has dealt another blow to the aerospace giant. The move comes as Boeing continues to grapple with a tarnished reputation following the 737 Max crashes in 2018 and 2019.
Boeing's woes have been further compounded by ongoing issues with the Starliner capsule, particularly related to its propulsion system. NASA opted to prioritize safety by delaying the astronauts' return until February rather than risking the use of the problematic capsule.
While the space capsule program represents only a small portion of Boeing's revenue, the high-profile nature of carrying astronauts has put the company under intense scrutiny. Analysts suggest that the financial impact of this setback may be overshadowed by the reputational damage suffered by Boeing.
Boeing has faced significant financial losses in recent years, with the aerospace division also experiencing challenges. Fixed-price contracts with NASA and the Pentagon, including the construction of new Air Force One jets, have led to cost overruns and financial setbacks for the company.
Despite these challenges, Boeing's defense division has secured major contracts, such as providing Apache helicopters to foreign governments and supplying F-15 fighter jets to Israel. The company's new CEO, who has a strong track record in the aerospace industry, is seen as a positive change in leadership that could help Boeing navigate its current difficulties.
Analysts believe that while Boeing may face continued challenges in the near term, the recent leadership change and new contract wins in the defense sector could help steer the company towards profitability in the future.
