Boeing Considers Selling Key Space Assets Amid Ongoing Challenges
Boeing, the US aerospace giant, may sell parts of its space business, according to a report from the Wall Street Journal on Friday. Sources familiar with the matter suggest the company’s decision stems from financial and operational challenges within its space division.
Space Operations on the Table for Sale
The assets Boeing is reportedly considering for sale include its Starliner space vehicle and other services related to the International Space Station (ISS). However, the potential sale excludes the division that builds NASA’s Space Launch System. Boeing’s Starliner program has faced persistent delays and technical setbacks, resulting in over $1.8 billion in cost overruns. These obstacles have impacted the timeline and performance of the spacecraft.
Despite these challenges, Boeing’s stock saw a slight rise of 0.6% in afternoon trading following the news. In response to queries about the possible sale, Boeing stated, “Boeing doesn’t comment on market rumours or speculation,” but declined further details.
Boeing Starliner’s Ongoing Technical Hurdles
The Starliner spacecraft has been a focal point of Boeing’s space endeavours but has encountered numerous issues since development began. Boeing’s Starliner has seen repeated delays due to technical complications, raising concerns over the project’s future. The difficulties recently left two NASA astronauts temporarily stranded on the ISS, who are now expected to return to Earth in February aboard a spacecraft from rival company SpaceX.
Challenges for Boeing’s Space and Aviation Operations
Boeing has long been a core partner in ISS operations, responsible for building and maintaining critical modules on the ageing space station, which NASA plans to retire by 2030. NASA is evaluating the potential of privately owned space stations to eventually replace the ISS, as part of a wider shift to private industry in low-Earth orbit.
In addition to space-related hurdles, Boeing is facing pressure within its aviation division due to a five-week strike involving 33,000 workers in its commercial plane manufacturing sector. This strike has disrupted production of Boeing’s popular 737 MAX, as well as its 767 and 777 models. The company’s new CEO, Kelly Ortberg, aims to stabilise Boeing’s operations amid these crises, emphasising a “doing less and doing it better” approach during a recent quarterly call. Ortberg did not, however, address the potential sale of space assets directly.