Boeing Shakes Space Industry With A Surprising Decision to Sell Space Division

Even though Boeing has been part of every US space project since the 1960s, it has abandoned many projects that show significant problems.

Boeing has been one of the biggest companies in human spaceflight for the past 60 years. It helped NASA build its Saturn V rockets and was a key contractor during the space shuttle era and international space station operations. Its engines also power for the NASA‘s Space Launch System.

Even after so many successful operations, it was a shock for many industry insiders when the aerospace giant announced the sale of significant portions of its space business due to its Starliner capsule financial loss.

Boeing announced last month that its quarterly losses increased by $6 billion due to workers’ strikes, and its new CEO suggested that it will prioritize amending its core business, which is manufacturing aircraft.

The CEO stated that they would focus on less, but it would not imply that it will exit from space or that introspection will not lead to defense, space, or security sector sales. Boeing is not commenting on speculation or market rumors.

Analysts argue that even though Boeing has been part of every US space project since the 1960s, it has abandoned many projects that show significant problems at Boeing.

Dr. Donald Platt, professor of aerospace, physics, and space sciences at Florida Tech, found it surprising that despite Boeing’s significant involvement in the space industry, which shows its technical capability, it has decided to sell its aerospace business.

Boeing announced in September that Ted Colbert, the head of the space division, is leaving the company as Ortberg started its recovery.

Beyond the image and prestige, Platt stated that NASA has faced many challenges, especially about the future of near-Earth crewed spaceflight, due to the uncertainties at Boeing. It is doubtful that Starliner will ever fly again.

Starliner was supposed to be in service instead of SpaceX’s Dragon spacecraft, but due to technical issues, it was returned to Earth in September without Butch Wilmore and Suni Williams, the astronauts of its first crewed flight.

NASA announced last month that SpaceX would take two crew rotation flights for the upcoming year.

Bill Nelson, the NASA administrator, confirmed that Starliner would fly again in a press conference in August. However, Platt is not confident about a new administration, either Democratic or Republican, where new people would be running NASA.

Officially, NASA is keeping its options open regarding Starliner. They have invested over $5 billion in the project since 2014, and the rumors that Boeing will abandon it after a $1.85 billion loss would only worsen the tension between the space agency and its commercial partner. After the test flight failed, the strain became more evident.

Other analysts think Boeing will not find a buyer if it separates from Starliner and its space station operations.

Clayton Swope, a senior fellow in the International Security Program at the Centre for Strategic and International Studies and deputy director of the Aerospace Security Project, stated that it is a very surgical approach to what Boeing would be interested in selling from its space business.

He adds that nobody would be interested in buying a portion of the company, and Boeing is unsure whether they can make a profit.

According to Swope, some of Boeing’s space division issues can be related to the new commercial spaceflight run as NASA pays fixed prices for operators and term contracts instead of more flexible and open-ended alliances of the Apollo era. The companies that have done business with NASA and the US government are pivoting to where the agency and many governments want to do space now.

He adds that Boeing or any other big government contractor would not like NASA to pay fixed prices for human or cargo transit to the moon or space station. Changes are taking place and are related to Starliner and Boeing.