Washington — Boeing is facing new challenges with its CST-100 Starliner commercial crew program as it takes a $250 million charge against earnings, citing schedule delays and increased testing and certification costs. This latest charge comes on top of a $125 million loss in the previous quarter, bringing the total losses on Starliner to approximately $1.85 billion.
Boeing’s new CEO, Kelly Ortberg, emphasized the company’s commitment to addressing troubled programs like the Starliner, despite the financial setbacks. He acknowledged the tough contracts Boeing is dealing with and expressed the need to improve risk management to prevent cost overruns.
During a recent earnings call, Ortberg dismissed the idea of walking away from fixed-price programs, stating that it is not a viable option for Boeing. He did, however, mention the possibility of reevaluating programs transitioning to different contract phases to determine the company’s next steps. Furthermore, Boeing is exploring ways to streamline its business operations, potentially discontinuing work in non-core areas to enhance efficiency and focus on core priorities.
Ortberg declined to specify which areas Boeing might divest from, but emphasized the importance of maintaining a strong presence in commercial aviation and defense. He aims to have a clearer strategy for restructuring by the end of the year, ensuring that the company remains competitive and sustainable in the long run.