Beleaguered Boeing May Want Out Of Space Race After Starliner Debacle
Reports of the possible sale began hitting headlines late last week, with sources familiar with the situation giving credence to the claim. Following an embarrassing summer spent dealing with Starliner issues, and NASA’s ultimate decision to return the spacecraft without crew, it would not be that surprising if it were true.
While not addressing the possible sell off of space assets directly during last week's earnings call, Ortberg did hint at the company cutting out some of its ventures, remarking, “We’re better off doing less and doing it better than doing more and not doing it well.”
Of course, Starliner is not the only concern for Boeing. The company as a whole reportedly lost $6 billion in the third quarter and has already begun selling off other assets, such as a deal that sent subsidiary Digital Receiver Technology to Thales Defense & Security last week. Boeing has also been said to be trying to raise an estimated $19 billion in stock offerings to pursue other sources of revenue.
In terms of the company’s space business, this past summer’s woes were not the first in terms of Boeing’s Starliner woes. The program has faced development delays and technical issues for some time, with more than $1.8 billion in reported private cost overruns. So reports of Boeing wanting to sell the beleaguered space program are not shocking. In fact, according to Jalopink, Ortberg confirmed Boeing is in discussions with Blue Origins, which also does business with NASA, including work on the Artemis lunar lander program.
As Ortberg attempts to “focus [Boeing’s] resources on performing and innovating in the areas that are core to who [Boeing and its employees] are,” time will tell who that is, and which parts of the company it encompasses.
