Boeing Evaluates Sale of Space Business After Starliner Issues
- Boeing is evaluating the possibility of selling its space division, which may include the Starliner spacecraft.
- This consideration comes amid ongoing troubles, including a fraud charge related to the 737 Max crashes and significant financial losses.
- The company's new CEO advocates for focusing on core areas, which may lead to a strategic shift away from less profitable ventures.
Boeing, headquartered in the United States, is currently considering the divestiture of its space division, following a series of challenges including issues with its Starliner spacecraft. The company is facing heightened scrutiny and significant financial difficulties, including a fraud charge linked to the 737 Max crashes and recent operational failures with its satellites. Kelly Ortberg, who stepped in as CEO in August, is leading the review. As part of a broader turnaround strategy, he is contemplating which projects may detract from the company's core business areas. Boeing’s Starliner has faced setbacks, particularly concerning its scheduled missions to support the International Space Station (ISS), contributing to a backlog that has left astronauts stranded for extended periods. With the company reporting losses exceeding $6 billion in a recent quarter, the financial implications have created urgency for reevaluation. In light of these challenges, Ortberg stated that the company needs to prioritize quality over quantity in its operations. While considerations are being made regarding the sale of some projects, Boeing is expected to retain its roles in managing the Space Launch System and maintaining its commercial and military satellite businesses, which are deemed vital. As the aerospace giant seeks to stabilize its financial footing, key decisions will shape its future trajectory and could lead to significant changes in its operational strategy aimed at long-term recovery and growth.