Boeing has now lost $1.1B on Starliner, with no crew flight in sight
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Re: Boeing has now lost $1.1B on Starliner, with no crew flight in sight
#2Lost, or invested? One imagines if they outright lost it and saw no opportunity to recoup (i.e. no longer an investment) they'd just end the program.
Re: Boeing has now lost $1.1B on Starliner, with no crew flight in sight
#3Or, as The Register likes to call it, the Calamity Capsule.
Re: Boeing has now lost $1.1B on Starliner, with no crew flight in sight
#4Lost, or invested? One imagines if they outright lost it and saw no opportunity to recoup (i.e. no longer an investment) they'd just end the program.
The contract doesn't permit Boeing to cancel. NASA can.
Re: Boeing has now lost $1.1B on Starliner, with no crew flight in sight
#5> Because Starliner was funded by NASA through a fixed-price contract, as part of the Commercial Crew program, Boeing is responsible for any cost overruns and financial losses due to delays.
Given Boeing’s history here this feels like the right kind of contract for this sort of work. Ensures all incentives are aligned
Re: Boeing has now lost $1.1B on Starliner, with no crew flight in sight
#6> Because Starliner was funded by NASA through a fixed-price contract, as part of the Commercial Crew program, Boeing is responsible for any cost overruns and financial losses due to delays. Given Boeing’s history here this feels like the right kind of contract for this sort of work. Ensures all incentives are aligned
Hey, we're finally getting some of those lucrative tax breaks back in the form of watching Boeing suffer!
Re: Boeing has now lost $1.1B on Starliner, with no crew flight in sight
#7Re: Boeing has now lost $1.1B on Starliner, with no crew flight in sight
#8This comment is your regularly scheduled reminder that they were supposed to be the safe option. The people who'd come in clutch when SpaceX failed (and it was assumed in certain quarters that SpaceX would fail to deliver on time). They were paid 2x more than what NASA paid SpaceX.
https://arstechnica.com/science/2022/09/nasa-will-pay-boeing...
RIP Boeing.
Re: Boeing has now lost $1.1B on Starliner, with no crew flight in sight
#9Lost, or invested? One imagines if they outright lost it and saw no opportunity to recoup (i.e. no longer an investment) they'd just end the program.
They could end the program but violating their contract probably costs them more than just finishing the work at a loss.
Re: Boeing has now lost $1.1B on Starliner, with no crew flight in sight
#10This comment is your regularly scheduled reminder that they were supposed to be the safe option. The people who'd come in clutch when SpaceX failed (and it was assumed in certain quarters that SpaceX would fail to deliver on time). They were paid 2x more than what NASA paid SpaceX. https://arstechnica.com/science/2022/09/nasa-will-pay-boeing... RIP Boeing.
To be clear to readers, the were only paid for their achieved milestones, which is nowhere near the full contracted amount since they haven't flown anyone.
As for the 2x part... it's cause their bid was 2x what SpaceX bid itself. And both got their bids accepted.