Kelly Ortberg, who became CEO of Boeing in August, is reportedly considering the sale of the company’s space division as part of a strategy to turn the business around.
According to The Wall Street Journal, these plans are still in the early stages and could potentially include offloading the Starliner spacecraft along with various projects related to the International Space Station. Boeing is currently grappling with several challenges, including a fraud charge related to the 737 Max crashes and ongoing issues with the Starliner that left two astronauts stranded at the ISS for extended periods. Additionally, a Boeing-made satellite for Intelsat recently malfunctioned and disintegrated after experiencing an “anomaly.”
In an earnings call this week, Ortberg emphasized the need for Boeing to streamline its operations, stating, “We’re better off doing less and doing it better than doing more and not doing it well.” He affirmed that the company’s core business areas, including commercial airplanes and defense systems, will remain integral to Boeing’s future. However, he hinted at the possibility of divesting less central operations that may distract from their primary objectives.
Sources indicate that Boeing is likely to retain oversight of the Space Launch System, which is intended to facilitate NASA’s return of astronauts to the Moon, as well as its commercial and military satellite divisions. As the company faces significant financial losses, with $6.17 billion reported for the quarter and ongoing expenses of $250 million for the Starliner project alone, Ortberg has some substantial decisions ahead to stabilize Boeing’s financial future.
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