Boeing Considers Selling Space Division Amid Starliner Setbacks
Chicago, Monday, 28 October 2024.
Boeing is reportedly exploring the sale of its space division, including the troubled Starliner program, as new CEO Kelly Ortberg reviews company operations. The move comes amid financial strain and safety concerns, potentially reshaping NASA partnerships and the aerospace industry landscape.
Financial Strain Prompts Strategic Review
Boeing’s financial challenges have been mounting, with the company reporting a significant $6.2 billion loss, exacerbated by a prolonged strike affecting its commercial aircraft operations[1]. CEO Kelly Ortberg, who took the helm in August 2024, is spearheading a comprehensive review of Boeing’s portfolio, prioritizing core areas such as commercial airplanes and defense systems[2]. The potential divestiture of its space division, which includes the Starliner program, marks a strategic pivot as Boeing seeks to streamline operations and improve financial health[3].
Starliner Program Under Scrutiny
The Starliner program has faced significant challenges, notably a test flight that left astronauts stranded at the International Space Station due to technical malfunctions. This incident has strained Boeing’s relationship with NASA, prompting the agency to rely on SpaceX for astronaut transport, with plans to bring astronauts back to Earth on a SpaceX mission in February 2025[4]. Despite a successful test launch in 2022, the Starliner has been plagued by delays and cost overruns, raising questions about the program’s viability and Boeing’s capability in the space sector[5].
Potential Buyers and Industry Impact
Reports indicate that Boeing has engaged in preliminary discussions with Jeff Bezos’s Blue Origin regarding a possible takeover of some NASA programs, reflecting the competitive dynamics of the aerospace industry[6]. The sale of Boeing’s space division could significantly alter the landscape, with industry giants like SpaceX continuing to dominate space transport and services. As Boeing reevaluates its strategic priorities, the outcome of these discussions could reshape its role in future NASA missions and broader space exploration initiatives[7].
Looking Ahead: Boeing’s Strategic Shift
As Boeing navigates this transitional period, CEO Kelly Ortberg has emphasized the need for focus, stating that the company is “better off doing less and doing it better than doing more and not doing it well”[8]. While the potential sale of the space division is still in early stages, the decision underscores a broader strategic shift towards strengthening Boeing’s core competencies in commercial and defense aviation. The coming months will be critical as Boeing finalizes its plans and determines the future of its space operations in a rapidly evolving industry[9].