NASA adds $359M to Boeing Starliner rescue effort

NASA plans to provide additional funding and technical support to get Boeing’s (BA) Starliner spacecraft flying again following the capsule’s troubled 2024 crewed mission, the Associated Press reported.

NASA Administrator Jared Isaacman said Starliner could return to the International Space Station as soon as December, initially carrying cargo rather than astronauts. Crewed flights aren't expected to resume until 2028 as Boeing (BA) and NASA complete additional safety work.

The 2024 mission encountered multiple technical problems and was later classified by NASA as a “Type A mishap,” the agency’s most serious category. Astronauts Butch Wilmore and Suni Williams remained aboard the space station for about nine months before returning aboard a SpaceX (SPCX) spacecraft.

NASA expects Starliner upgrades and certification of new launch vehicles to cost the agency another $359 million. Planned changes include redesigned valves and seals.

For investors, NASA’s decision to continue supporting Starliner reduces the risk that Boeing’s (BA) years-long investment in the spacecraft will be abandoned, but the delayed return of astronauts underscores how far the program remains from routine operations. Boeing (BA) already has absorbed substantial charges related to Starliner, making further development costs and the timing of future NASA payments important for investors.

NASA also has a strategic reason to keep Boeing (BA) in the program. The agency has long sought two independent U.S. systems capable of transporting astronauts to orbit rather than relying entirely on SpaceX (SPCX). That need could become more important as SpaceX (SPCX) eventually shifts resources from Falcon 9 and Dragon toward its larger Starship vehicle.

Starliner’s longer-term opportunity could extend beyond the International Space Station, which is scheduled to be retired around 2031. Several companies are developing private orbital stations that could eventually need crew transportation services. For Boeing, however, reaching that market first requires demonstrating that Starliner can fly safely and reliably.