BA Boeing Co

By Andrew Tangel and Doug Cameron 

Officials at the National Aeronautics and Space Administration said they would review how Boeing Co. failed to detect software glitches that resulted in a botched space-capsule launch in December.

The U.S. space agency on Friday reported a previously undisclosed software flaw, in addition to a problem identified earlier that prevented the capsule from reaching the correct orbit.

Douglas Loverro, an associate NASA administrator, said the agency would examine whether broader problems at Boeing contributed to the Starliner's software problems. He said NASA's oversight of the spacecraft's development had also been insufficient.

"It looks as if there could possibly be process issues at Boeing, and so we want to understand what the culture is at Boeing that may have led to that," Mr. Loverro said in a call with reporters.

Boeing's board ousted Dennis Muilenburg as chief executive days after the Starliner launch on Dec. 20. The mishap dealt another blow to Boeing, as its management continues to work through the ramifications of the grounding of the 737 MAX. The passenger jet has been grounded since March following the second of two fatal crashes, and Boeing suspended its production in January.

Boeing said Friday that it had signed a new $13 billion loan agreement to bolster its liquidity. The amount was at the midrange of market expectations. Moody's said it expects the two-year credit facility to be fully drawn down this year, offsetting a projected $11 billion drain in cash.

Jim Chilton, a Boeing senior vice president, said the Chicago-based aerospace giant would learn from the Starliner software problems and was reviewing the matter.

In addition to the Starliner, NASA plans to rely on Boeing for spacecraft as part of human exploration of the moon and other parts of the solar system.

Prior to Friday's developments, NASA's top safety-advisory panel urged agency leaders to delve into reasons for the software problems and determine what corrective action may be necessary.

Write to Andrew Tangel at Andrew.Tangel@wsj.com and Doug Cameron at doug.cameron@wsj.com

(END) Dow Jones Newswires

February 07, 2020 19:33 ET (00:33 GMT)

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