The corporation could end up ditching its troubled Starliner and some other space-related projects
According to The Wall Street Journal, Boeing is considering selling its NASA business, including the troubled Starliner program and the support operations for the International Space Station (ISS). The report, citing sources familiar with the matter, indicates that Boeing is expected to maintain its involvement in certain space-related programs, notably the Space Launch System (SLS), NASA’s super-heavy expendable launch vehicle. The SLS, a crucial component of the agency’s Moon exploration plans, successfully completed its inaugural flight two years ago. However, the rocket’s production has encountered various challenges and quality control issues.
The less successful programs, including the ill-fated Starliner spacecraft, designed to transport crews of up to seven to and from the ISS, could be sold off, according to the sources. The spacecraft was initially scheduled to become operational in 2017 but has faced repeated delays due to various engineering and management issues. The latest crew flight test, launched in June, resulted in a partial failure after the spacecraft’s thrusters malfunctioned during its approach to the ISS. As a result, returning its astronauts aboard the ship was deemed too risky, and it ultimately returned to Earth uncrewed in September.
The potential sale of its space-related assets is part of a strategy implemented by Boeing’s new CEO, Kelly Ortberg, who aims to streamline the corporation and reduce its financial losses. Notably, even before Ortberg assumed his position in August, Boeing had been in communication with potential buyers, including Jeff Bezos’s Blue Origin company.
During a call with analysts and investors earlier this week, the new CEO indicated that the corporation was poised for a significant overhaul. While the production of military and commercial aircraft will remain central to the company’s operations, it could divest itself of “some things on the fringe,” Ortberg stated.
“It’s going to take a lot of work. We’re not going to be able to just wave a wand and clean up these troubled contracts. We signed up to some things that are problematic,” he cautioned, adding that Boeing would be “better off doing less and doing it better than doing more and not doing it well.”
The corporation has been facing a persistent financial crisis, with its defense and space projects burdened by repeated cost overruns and delays, while airliner production has effectively come to a standstill due to a weeks-long machinists’ strike.