Boeing is said to be contemplating the divestiture of its NASA division, which encompasses the problematic Starliner program as well as the support services for the International Space Station (ISS).
US aerospace giant has been facing continuous financial problems lately, with its defense and space initiatives plagued by ongoing cost overruns and delays, while production of airliners has essentially come to a standstill due to a machinists’ strike that has lasted for several weeks.
According the reports, American plane maker is anticipated to maintain its involvement in certain space-related initiatives, particularly the Space Launch System (SLS). This super-heavy expendable launch vehicle, utilized by NASA, is a crucial element of the agency’s lunar exploration strategy and successfully completed its inaugural flight two years prior. Nevertheless, the production of the rocket has encountered various challenges and quality control concerns.
Sources have indicated that less successful initiatives, such as the troubled Starliner spacecraft intended to ferry crews of up to seven to and from the International Space Station (ISS), may be sold off. Initially, the spacecraft was scheduled to become operational in 2017; however, it has faced numerous delays due to various engineering and management issues.
The most recent crew flight test, conducted in June, experienced a partial failure when the spacecraft’s thrusters malfunctioned during its approach to the ISS. Consequently, it was considered too hazardous to return the astronauts aboard the vessel, which ultimately returned to Earth without a crew in September.
The prospective divestiture of its space-related assets aligns with the strategic vision of Boeing‘s new CEO, Kelly Ortberg, who aims to optimize the organization and reduce its financial deficits. Notably, Boeing had initiated discussions with potential purchasers, including Blue Origin, the company founded by Jeff Bezos, prior to Ortberg’s appointment in August.
During a recent conference call with analysts and investors, the new CEO indicated that the company is poised for significant transformation. While the manufacturing of military and commercial aircraft will continue to be central to Boeing’s operations, Ortberg mentioned the possibility of divesting “some things on the fringe.”
Significant effort will be required to address the situation. It will not be possible to simply wish away the complexities associated with these problematic contracts. We have committed to certain obligations that present challenges, he cautioned, emphasizing that Boeing would be more successful by focusing on fewer initiatives and executing them effectively rather than attempting to manage a larger number of projects inadequately.
