Boeing is considering selling parts of its NASA business, particularly the Starliner rocket and operations that support the International Space Station due to financial difficulties stemming from a strike and technical problems. This possible exit from the space industry comes as Boeing faces a five-week strike leading to production halts and the Starliner rocket accumulating over $1.8 billion in private cost overruns. Despite the sale of its space business, Boeing is likely to maintain its oversight of the Space Launch System, a large rocket being built for future lunar missions by NASA.
Although Boeing has had a historically significant role in space exploration, including working on Saturn V rockets and constructing the International Space Station, recent setbacks with the Starliner spacecraft have led to a potential change in direction for the company. The company has also been trying to attract buyers for United Launch Alliance, a joint venture with Lockheed Martin. Boeing’s new CEO, Kelly Ortberg, has indicated a willingness to sell off parts of the business that are not part of the core commercial or defense operations in order to focus on areas where the company can excel.
Boeing had previously been in discussions with Jeff Bezos’ Blue Origin to take over some of its NASA programs, indicating a willingness to collaborate with other space companies to address challenges the company is facing. The company’s space business has suffered significant losses, with a $3.1 billion loss on $18.5 billion in revenue in the first nine months of the year. NASA’s plans to de-orbit the space station by around 2030 have also added pressure on Boeing as the future of the Starliner remains uncertain.
The sale of Boeing’s space business represents a change from the company’s successful history in the space industry, including its contribution to the Apollo moon missions. The company’s Starliner spacecraft has faced development delays and technical issues, leading to astronauts being stranded on the International Space Station who are set to return on a SpaceX craft in February. Boeing will continue to oversee the Space Launch System rocket for future lunar missions, despite facing quality-control issues with the system following its successful test flight two years ago.
Boeing’s new CEO, Kelly Ortberg, has emphasized the need for the company to focus on core operations and improve performance rather than expanding into areas where it may not excel. Ortberg has indicated a willingness to sell off non-core businesses, including parts of the space sector. The company has faced financial challenges due to a strike and technical problems with the Starliner spacecraft, leading to speculation about the future of Boeing in the space industry. Despite these challenges, Boeing’s long history in space exploration and its ongoing involvement in key projects such as the Space Launch System indicate that the company remains committed to its role in advancing space exploration.
