Space & Cosmos

Boeing considers sale of space business: report

The statement came after Boeing reported a huge loss of $6.2 billion.

Boeing is considering the possibility of selling its space business as its new CEO seeks to improve the company’s struggling financial situation, The Wall Street Journal reported Friday.

The newspaper reported, citing people familiar with the matter, that the company is considering selling its NASA operations, including the troubled Starliner.

Asked for a response, a Boeing spokesperson told AFP that the company “does not comment on market rumors or speculation.”

Chief Executive Officer Kelly Ortberg, who joined Boeing in August, said earlier this week that the company is rethinking the company’s operations with an eye toward narrowing Boeing’s profile.

Ortberg said on an earnings call with analysts Wednesday that Boeing is “better to do less and do well than do more and do poorly.”

Ortberg gave no indication of plans to scale back Boeing’s space program, but noted that commercial aircraft and defense products are “core” products that “will always remain for Boeing.”

The statement comes after Boeing reported a huge loss of $6.2 billion, due in part to the closure of two assembly plants due to a six-week labor strike in the Seattle area.

Also on Wednesday, the machinists’ union rejected Boeing’s latest contract offer, further clouding the company’s outlook.

Boeing has worked closely with the National Aeronautics and Space Administration (NASA) for years, but its space program has suffered major setbacks in recent years.

After repeated delays, Starliner was launched in June and was scheduled for a test mission of about a week.

However, an unexpected thruster failure and helium leak on the way to the International Space Station (ISS) derailed the plan, and NASA finally decided to fly two people into space on a SpaceX-operated spacecraft in September. It was decided that it would be safer to return the soldiers.

© 2024 AFP

Citation: Boeing considers sale of space business: Report (October 26, 2024) October 26, 2024 https://phys.org/news/2024-10-boeing-exploring-sale-space-business. Retrieved from html

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