Report: Boeing explores selling space business such as interstellar aircraft

Boeing once helped American astronauts land on the moon for the first time, but now it wants to withdraw from the space race.

On Friday, October 25th, Eastern Time, The Wall Street Journal cited sources familiar with the matter as saying that Boeing is considering selling its renowned NASA business, including the Starliner spacecraft and operations supporting the International Space Station. However, this plan is still in the early stages and may not materialize.

The reason for the sale is that Boeing's new CEO Kelly Ortberg wants to streamline the company's operations to focus on core businesses and reduce financial losses. Boeing is currently facing a severe financial crisis, as the company's largest union has rejected two contract proposals in a row and extended strikes, leading to the halt of most of Boeing's aircraft production. At the same time, Boeing's space and defense projects are also in trouble due to delays and cost overruns.

In response to this news, Boeing's stock price rebounded in the short term during Friday's trading session, rising from a decline of over 0.4% to an increase of nearly 1.2%.

Boeing Initiates "Sell, Sell, Sell" Mode?

Boeing's new CEO Ortberg, who took office in August, stated that they are considering selling off some assets and getting rid of problematic projects. Apart from core commercial and defense businesses, almost everything else is up for consideration.

During a conference call with analysts this week, Ortberg said:

"We would rather do less, but do it better, than do a lot, but do it poorly. What do we want this company to look like in five or ten years? Will these things add value to the company, or will they distract us?"

Boeing has collaborated with NASA for decades, participating in many major projects, including the Apollo moon landing missions and the construction of the International Space Station. However, in recent years, SpaceX has replaced Boeing as NASA's primary partner. Recently, due to issues with Boeing's Starliner spacecraft's first crewed flight, NASA decided to have two astronauts stay on the International Space Station for a few more months and return to Earth aboard SpaceX's spacecraft.

Some sources suggest that while Boeing may sell off some of its space businesses, it is expected to continue overseeing the important rocket project SLS. SLS is a giant rocket funded by NASA for future moon exploration missions. The rocket successfully completed its first flight for NASA about two years ago, but Boeing faced some challenges during the rocket's production process, such as production progress and quality control issues.

Additionally, Boeing and its partner Lockheed Martin have spent over a year looking for opportunities to sell their jointly controlled rocket launch company United Launch Alliance, with each holding half of the company's shares. This company operates independently of Boeing and Lockheed Martin, primarily conducting rocket launch missions related to U.S. national security Ortberg fired the head of the defense and space business in September. The department where the head was located is Boeing's Defense, Space, and Security division, which is mainly responsible for manufacturing military aircraft for the U.S. Department of Defense (including the Pentagon), such as jet fighters and helicopters, as well as some space operations. Despite generating $18.5 billion in revenue in the first nine months of 2024, the department still incurred a $3.1 billion loss.

Before joining Boeing, Ortberg had discussions with Blue Origin, the space company owned by billionaire Bezos, about potentially handing over some NASA projects to them. Those familiar with the discussions said that Blue Origin has been preparing its own rockets for future NASA and commercial missions, competing with SpaceX.

However, whether or not it is eventually sold, Boeing's Starliner project and work for the International Space Station (ISS) face uncertainties. At the same time, NASA plans to retire the International Space Station around 2030, ending the mission of the space station that has been in orbit for many years.

Key moments for Boeing in space exploration include:

• Saturn V Rocket: (1969 to 1972) Boeing played a key role in manufacturing the Saturn V rocket used to launch Apollo missions and send American astronauts to the moon.

• Space Shuttle: (1976 to 2011) Boeing acquired Rockwell International Corporation in 1996, which manufactured six space shuttles. Boeing and Lockheed Martin were also part of a joint venture responsible for overseeing space shuttle operations.

• Space Station: In 1993, NASA selected Boeing as the primary contractor for the International Space Station, a research laboratory that has been in orbit for 25 years.

• Crew Capsule: In 2014, NASA hired Boeing and SpaceX to develop crewed spacecraft to transport astronauts to the International Space Station. SpaceX's Crew Dragon spacecraft has been ahead of Boeing's Starliner spacecraft.

• SLS Rocket: In 2022, Boeing successfully launched NASA's Artemis mission with the Space Launch System (SLS) rocket as the primary contractor, a project aimed at sending astronauts back to the lunar surface