- Boeing is considering selling its Starliner program and ISS support operations.
- Cost overruns and competition from SpaceX are pressuring Boeing’s space division.
- The company also faces a significant strike in its civil aviation segment.
Boeing, a longstanding contractor for NASA, is reportedly exploring the sale of certain space assets, including its Starliner spacecraft program and components that support the International Space Station (ISS).
This move comes after the Starliner project suffered significant delays and cost overruns, reportedly surpassing $1.8 billion.
Boeing Reassesses Space Portfolio as Starliner Faces Setbacks
With NASA transitioning from the ISS to private space station developments by the decade’s end, Boeing’s role in ISS maintenance and support may diminish. This, coupled with the competitive pressure from companies like SpaceX, has placed Boeing’s space operations under scrutiny. In civil aviation, Boeing faces separate challenges, with a prolonged workers’ strike affecting production for its flagship models, including the 737 MAX.
Beyond Starliner, Boeing’s space division has been integral to the ISS program, providing modules and maintenance that have supported the station’s long-term functionality. However, as NASA shifts focus toward private sector solutions for future space station needs, Boeing’s role may see a natural decline. This context likely influences the company’s decision-making as it anticipates the ISS’s planned retirement by the end of this decade.
Boeing’s broader challenges extend to its civil aviation arm, where a large-scale labor strike has disrupted production for models like the 737 MAX, impacting delivery timelines and revenue. The strike has been ongoing for five weeks, with 33,000 workers calling for improvements in working conditions. Such disruptions add to the pressure on Boeing’s leadership, who are looking to streamline and stabilize the company’s core operations.
In light of these issues, Boeing CEO Kelly Ortberg recently addressed the need for a leaner operational strategy, signaling the company’s intent to balance priorities across both its space and civil aviation businesses. If Boeing proceeds with the divestiture, it may reflect a strategic shift in focus towards more stable, lower-risk ventures within the aerospace sector.
Boeing’s contemplation of a sale in its space division signifies a recalibration of priorities, aiming to streamline its operations and bolster stability amid industry challenges.
“Boeing’s divestiture consideration underscores a decisive shift towards stability in an increasingly competitive aerospace landscape.”
