Struggling Boeing might leave the space business

Boeing, which played a pivotal role in the Apollo missions, is now considering exiting the space race.

The Wall Street Journal reported the aerospace giant is exploring the sale of its NASA-related operations, including the Starliner space vehicle and support for the International Space Station (ISS). Boeing’s new CEO, Kelly Ortberg, is streamlining operations and reducing financial losses.

The discussions to jettison the space assets are in the early stages and may not result in a sale.

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“There would be no space program as we know it without Boeing,” Chris Sullivan, senior transportation reporter for KIRO Newsradio, said. “The lunar landing, the moon missions, the space station. Boeing had its hand in all of it.”

Boeing is facing significant financial challenges, including a strike by its largest labor union and delays and cost overruns in its space and defense projects.

“Clearly something had to be done,” Sullivan said. “The Starliner program has been problematic, leaving astronauts stranded for 8 months. The company needs to get this part of the business in line.”

Historically, Boeing has been a key partner in major NASA programs, but SpaceX has recently taken the lead. NASA chose to delay the return of two astronauts from the ISS on a SpaceX craft due to issues with Starliner.

Despite these challenges, Boeing is expected to continue overseeing the Space Launch System (SLS), a massive rocket for future lunar missions. Boeing and Lockheed Martin also seek a buyer for their United Launch Alliance venture, which focuses on U.S. national-security launches.

Ortberg, who became CEO in August, is considering asset sales and eliminating problematic programs to focus on core commercial and defense businesses. He emphasized the need to do fewer things better rather than more things poorly.

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In September, Ortberg dismissed the head of Boeing’s defense and space business, which reported a $3.1 billion loss on $18.5 billion in revenue for the first nine months of 2024. Before Ortberg’s tenure, Boeing discussed with Blue Origin about taking over some NASA programs. Both the Starliner program and Boeing’s ISS work face uncertainty, especially with NASA planning to deorbit the ISS around 2030.

NASA is still evaluating the next steps for Starliner, including securing approval for regular astronaut missions. The agency had hoped to use Starliner as a second U.S. vehicle for transporting astronauts to and from the ISS, alongside SpaceX’s Crew Dragon.

Bill Kaczaraba is a content editor at MyNorthwest. You can read his stories here. Follow Bill on X, formerly known as Twitter, here and email him here.