Boeing is apparently considering exiting the space business

After a series of problems at Boeing – such as the recent Starliner debacle – further details about a possible reorganization are now leaking out of the company: according to this, the new CEO Kelly Ortberg sees the sale of the space division and numerous other business lines as an option. This was reported by the Wall Street Journal, citing several anonymous sources and statements made by the Boeing boss in a conversation with analysts.

The company, whose space probe put the first men on the moon, is facing massive problems. Boeing is making losses in the billions, defense and space projects are delayed and sometimes cost significantly more than planned. Most recently, significant quality defects in the Boeing Starliner, the manned space probe that took two NASA astronauts to the International Space Station in June, but then failed to return, made headlines. The reasons for this included engine problems and helium leaks. Elon Musk's aerospace company SpaceX is due to return the two stranded astronauts with a Crew Dragon spacecraft in February – They will have already spent eight months on the ISS instead of the planned seven days.

Problems in the space sector

With SpaceX and other private space companies, another major problem for Boeing in the space sector has already been mentioned – the competitive pressure on the company is increasing, while quality deficiencies are piling up. In addition, a historic space project in which Boeing played a key role is coming to an end: the ISS is to be decommissioned in 2030. NASA would then like to rely on private providers such as Blue Origin or Voyager for its successor. The Russian space agency even wants to withdraw from the ISS as early as 2028.

Starliner and ISS are also the areas of the space business that Boeing now intends to withdraw from. It is questionable whether this will be possible through a sale, or whether Boeing would simply cease its activities here. In addition, Boeing and Lockheed Martin have been looking for a buyer for United Launch Alliance, a joint venture for rocket launches, for the past year. The company will probably hold on to its commercial and military satellite business, as well as the Space Launch System.

Ortberg: Almost everything on the test bench

The Wall Street Journal refers to several unnamed insiders and to some statements made by Ortberg in a conversation with analysts. Ortberg reportedly said that the company should focus on fewer successful areas in the future, rather than on many with little success. According to the Boeing CEO, all business areas except the two core areas – commercial aviation and defense – are under scrutiny. The question now is what the company should look like in five and ten years' time and to what extent these objectives will create added value.

(nen)