Boeing studies the sale of its space division after the failure of the Starliner ship

Boeing is considering the sale of its space division to gain liquidity and recover from the financial crisis it faces, according to The Wall Street Journal. The measure would mark the end of one of the space services providers with the longest history in the market.

The report indicates that the review is at an early stage. Boeing CEO Kelly Ortberg has suggested in a call with investors that the company needs to reduce the number of assets it manages to optimize their effectiveness. He assures that “commercial aircraft and defense systems will be maintained in the long term.” But he recognized that there are some “marginal operations” that are not adding value to the business and that are diverting resources that do not benefit the main objectives of the organization.

The information indicates that Ortberg’s intentions have been driven by the failure of the first manned flight that the Starliner spacecraft carried out for the National Aeronautics and Space Administration (NASA). In June, the capsule lifted off and reached orbit with astronauts Barry Wilmore and Sunita Williams on board. The crew was tasked with testing the end-to-end capabilities of the vehicle’s systems. The mission would arrive at the International Space Station (ISS) and a week later the explorers would return to Earth. Various technical problems complicated the maneuvers. Wilmore and Williams are now scheduled to return through February 2025.

Confidence in Boeing’s space technology is declining. It has been ruled out that the manufacturer’s modules will be able to make regular trips to the ISS before the summer of 2025. “We will dedicate a couple of months to post-flight analysis. There are teams that are beginning to see what we will do to get the vehicle fully certified in the future,” Steve Stich, director of commercial flights at NASA, said in September.

The decision has the potential to exacerbate Boeing’s financial and reputational crises. The corporation pleaded guilty to one count of criminal fraud conspiracy related to two crashes of its 737 Max planes that claimed the lives of 346 people. Since the middle of last month, nearly 33,000 of its workers have gone on strike. The strike has completely stopped aircraft manufacturing at plants located in the city of Seattle.

The corporation reported losses of more than $6.1 billion during the last quarter. Under this scenario, the Starliner project represents a drag on Boeing’s business. The program involved a quarterly expense of 250 million. The cost overruns and delays of the mission as a whole have been valued at more than 1.8 billion, according to Bloomberg.

The Wall Street Journal points out that the divestment could be partial. Boeing is considering getting rid of the Starliner and its ISS support projects. Despite this, it would maintain the operation of its commercial and military satellites, as well as supervision of NASA’s Space Launch System, a rocket designed to transport heavy cargo into deep space and intended to execute the Artemis mission.

Analysts say that, regardless of the terms, Boeing’s possible departure would imply a considerable setback for the United States space industry. NASA has launched various initiatives to make explorations into the cosmos more affordable. SpaceX and its powerful Falcon 9 rocket have contributed significantly to achieving this goal. The ship from Elon Musk’s aerospace company is reusable and has been recognized as the space vehicle with the most launches in history. However, with less competition, you will have less chance to stay in this line.

“Boeing was supposed to be the safe bet. If he desists, it would be detrimental to the United States and access to space. SpaceX is not going to lower prices on its own. Until there are more rivals, nothing can challenge her. Competition is good for everyone. It translates into more innovation, lower prices, greater participation and new ideas,” says Chad Anderson, partner at the venture capital firm Space Capital, in a statement taken up by Bloomberg.