The corporation could end up ditching its troubled Starliner and some other space-related projects
Boeing is considering the sale of its NASA business, including the troubled Starliner program and the support operations to the International Space Station (ISS), The Wall Street Journal reported on Friday, citing sources familiar with the matter.
The corporation is expected to retain its position in some of the space-related programs, namely the Space Launch System (SLS), a super-heavy expendable launch vehicle used by NASA, the sources told the WSJ. The SLS, the key component of the agency’s Moon exploration plans, successfully performed its first flight two years ago. However, production of the rocket has faced assorted troubles and quality control issues.
The less successful programs, including the ill-fated Starliner ship, designed to transport crews of up to seven to and from the ISS, could end up sold off, the sources claimed. The spacecraft was originally planned to become operational in 2017 but has been repeatedly delayed over assorted engineering and management problems. The latest crew flight test, launched in June, resulted in partial failure after the spacecraft’s thrusters malfunctioned on approach to the ISS, and it was deemed too risky to return its astronauts aboard the ship, which ultimately returned to Earth uncrewed in September.
The potential sale of its space-related assets comes as a part of the strategy of Boeing’s new CEO, Kelly Ortberg, who is seeking to streamline the corporation and cut its financial losses. However, Boeing had been in contact with potential buyers, including the Blue Origin company owned by Jeff Bezos, even before Ortberg took over in August.
The new CEO signaled the corporation was due for a major overhaul, during a call with analysts and investors earlier this week. While the production of military and commercial aircraft will remain at the company’s core, it could ditch “some things on the fringe,” Ortberg stated.
“It’s going to take a lot of work. We’re not going to be able to just wave a wand and clean up these troubled contracts. We signed up to some things that are problematic,” he warned, stating that Boeing would be “better off doing less and doing it better than doing more and not doing it well.”
The corporation has been experiencing an enduring financial crisis, with its defense and space projects troubled by repeated cost overruns and delays, while airliner production has effectively ground to a halt in a weeks-long machinists’ strike.
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