The Scoop: NASA capsule issues latest struggle for Boeing

Plus: Telegram founder detained in Paris over unchecked; Fed sends key message about U.S. economy.

Boeing logo (The Scoop: NASA capsule issues mark latest struggle for Boeing)

Two NASA astronauts, stuck at the International Space Station since June, will be there for months longer due to ongoing issues with a Boeing-made spacecraft.

Because of the issues with the Boeing Starliner, NASA will turn to Space X — a Boeing rival — to bring home astronauts Butch Wilmore and Suni Williams. Wilmore and Williams originally planned to be in space for about eight days, but issues with the Boeing vessel they rode into orbit caused the trip to be extended indefinitely.

 

 

Boeing has faced many issues with its aerospace business in recent years. Though, it had insisted, based on recent space and ground tests of its thrusters, that the Starliner was safe, according to the Associated Press.

But, based on its tests on Saturday, NASA decided to “keep Butch and Suni aboard the International Space Station and bring the Boeing Starliner home uncrewed” as a “commitment to safety,” NBC News reported.

The Starliner issues will force the astronauts to remain aboard the ISS until February.

Why it matters: In business, reputation and trust matter above all else. And right now, that’s one area where Boeing is really struggling.

The latest Starliner issue marks the continuation of several years of bad press for Boeing, a longstanding leader in the aerospace engineering sector.

Two of the company’s 737 Max airliners crashed in 2018 and 2019. The safety of its products again came under renewed scrutiny earlier this year after a panel blew out of a Max during a flight. Boeing has also faced years of issues with its Starliner capsule program, which has faced years of delays, ballooning costs and system issues.

Since 2022, Boeing’s defense and space division has lost $6 billion, slightly more than the airplane side of its business during the same period, per the AP.

While the space capsule program represents a tiny fraction of Boeing’s revenue, carrying astronauts is a high-profile job. Being able to land to bring a pair of American astronauts safely back to Earth would have been a major win for the company. 

Instead, the Boeing name is appearing in a slew of negative international headlines — “NASA says astronauts stuck in space will not return on Boeing capsule, will wait for SpaceX craft” — that not only reinforce its struggles but highlight its competitor’s role in cleaning up its mess. To make matters worse, Boeing was very public about its belief that the Starliner system would be successful this time around.

Clearly, this move will not mark the end of Boeing as an aerospace leader. NASA Administrator Bill Nelson said Saturday he was “100% confident” that the Starliner will fly with a crew again. But for Boeing, it really needs a major win to help build that consumer and investor trust.

Editor’s Top Reads:

  • The Federal Reserve just sent what business analysts are calling an “unambiguous signal” to Wall Street that lower interest rates are coming soon. “We will do everything we can to support a strong labor market as we make further progress toward price stability,” Chair Jerome Powell said during an annual gathering of central bankers and economists. Powell also voiced confidence that the United States economy would be able to tame inflation without a sharp rise in unemployment. Economists aren’t always the most gregarious people and they typically offer measured responses when it comes to the economy. Seeing such a strong, clear statement from Powell was a welcome sign for investors and business owners. Stocks hovered near all-time highs following Powell’s comments, with more than 80% of the shares in the S&P 500 advancing on Monday. Obviously, it’s never a good idea to make bold statements if you’re not absolutely confident in the facts behind those claims. But being able to make straightforward, clear comments about a situation is going to serve an audience much better than the alternative.
  • On Saturday, Paris police detained Pavel Durov, the founder of Telegram, on a warrant related to the app’s lack of moderation. Telegram, which has about 900 million users worldwide, is a crucial communication tool in many countries. People use it for everything from chatting to sharing government messages with residents. However, critics of Telegram consider the app an unchecked pathway for a variety of illegal acts, such as money laundering, drug trafficking and the spread of child pornography. Durov’s arrest raises the question of social media’s duty to moderate its users. The European Union adopted the Digital Service Act as a way to rein in social media platforms and hold their leadership more responsible for things like misinformation and privacy issues. However, Durov supporters, such as X owner Elon Musk and Robert F. Kennedy Jr. called the arrest an attack on free speech. In a statement, Durov said it’s “absurd to claim that a platform or its owner are responsible for abuse of that platform,” adding that “Telegram abides by EU laws,” including the DSA.
  • Apple is set to unveil a range of new products Sept. 10. While the always-anticipated event will likely feature updates about the iPhone 16 and Apple Watch, among the things to keep an eye out for is the company’s suite of AI features. Apple Intelligence promises to help users “write, express yourself, and get things done effortlessly.” While announced earlier this year, showing the integration of the tools into Apple’s newest Phones, iPads and Mac products will be especially significant given Google’s reveal of Gemini Live for Android devices in mid-August. It’ll be interesting to see how Apple’s AI compares to Gemini Live in terms of function and usability. Apple users are notoriously loyal to the company, but it will be interesting to see if the hype surrounding Gemini Live is enough to pull some users away. The AI wars continue.

Casey Weldon is a reporter for PR Daily. Follow him on LinkedIn.

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