Boeing considering selling its space division
According a Wall Street Journal exclusive today (behind a paywall), the company is now exploring the possibility of selling off its space division.
The NASA business that Boeing is exploring a sale of includes the troubled Starliner space vehicle and operations that support the International Space Station, but excludes the unit building NASA’s Space Launch System, the newspaper reported.
The U.S. planemaker’s shares rose 0.6% in afternoon trading.
Boeing’s space division includes its Starliner capsule and its work on NASA’s SLS rocket, as well as building many of the modules on ISS and operating it for NASA.
If this is so, it appears the new CEO, Kelly Ortberg, has decided that in order to get the company back on track it needs to focus on Boeng’s first and central business, building airplanes. Space is a distraction that is not helping the company bottom line right now in any way. Furthermore, NASA in 2020 told Boeing it would not entertain any new project bids from the company because its past bids were so poorly conceived. That decision remains in effect now, four years later. Since then Boeing has only have gotten a renewal contract to build more SLS rockets, plus a contract to develop a new airplane wing, but little else.
On Christmas Eve 1968 three Americans became the first humans to visit another world. What they did to celebrate was unexpected and profound, and will be remembered throughout all human history. Genesis: the Story of Apollo 8, Robert Zimmerman's classic history of humanity's first journey to another world, tells that story, and it is now available as both an ebook and an audiobook, both with a foreword by Valerie Anders and a new introduction by Robert Zimmerman.
The print edition can be purchased at Amazon. from any other book seller, or direct from my ebook publisher, ebookit.
The ebook is available everywhere for $5.99 (before discount) at amazon, or direct from my ebook publisher, ebookit. If you buy it from ebookit you don't support the big tech companies and the author gets a bigger cut much sooner.
The audiobook is also available at all these vendors, and is also free with a 30-day trial membership to Audible.
"Not simply about one mission, [Genesis] is also the history of America's quest for the moon... Zimmerman has done a masterful job of tying disparate events together into a solid account of one of America's greatest human triumphs."--San Antonio Express-News
According a Wall Street Journal exclusive today (behind a paywall), the company is now exploring the possibility of selling off its space division.
The NASA business that Boeing is exploring a sale of includes the troubled Starliner space vehicle and operations that support the International Space Station, but excludes the unit building NASA’s Space Launch System, the newspaper reported.
The U.S. planemaker’s shares rose 0.6% in afternoon trading.
Boeing’s space division includes its Starliner capsule and its work on NASA’s SLS rocket, as well as building many of the modules on ISS and operating it for NASA.
If this is so, it appears the new CEO, Kelly Ortberg, has decided that in order to get the company back on track it needs to focus on Boeng’s first and central business, building airplanes. Space is a distraction that is not helping the company bottom line right now in any way. Furthermore, NASA in 2020 told Boeing it would not entertain any new project bids from the company because its past bids were so poorly conceived. That decision remains in effect now, four years later. Since then Boeing has only have gotten a renewal contract to build more SLS rockets, plus a contract to develop a new airplane wing, but little else.
On Christmas Eve 1968 three Americans became the first humans to visit another world. What they did to celebrate was unexpected and profound, and will be remembered throughout all human history. Genesis: the Story of Apollo 8, Robert Zimmerman's classic history of humanity's first journey to another world, tells that story, and it is now available as both an ebook and an audiobook, both with a foreword by Valerie Anders and a new introduction by Robert Zimmerman.
The print edition can be purchased at Amazon. from any other book seller, or direct from my ebook publisher, ebookit. The ebook is available everywhere for $5.99 (before discount) at amazon, or direct from my ebook publisher, ebookit. If you buy it from ebookit you don't support the big tech companies and the author gets a bigger cut much sooner.
The audiobook is also available at all these vendors, and is also free with a 30-day trial membership to Audible.
"Not simply about one mission, [Genesis] is also the history of America's quest for the moon... Zimmerman has done a masterful job of tying disparate events together into a solid account of one of America's greatest human triumphs."--San Antonio Express-News
Given that Boeing’s SLS operations will not be on offer, perhaps Boeing is looking to divest itself of those parts of its space operations that it has decided to sell on a piecemeal basis. Doing so would likely increase the number of potential buyers and maximize what Boeing could get, in total, for its divestitures versus just putting everything for sale in one bag and making the sale an all-or-nothing affair. Peddling the Starliner operation as a discrete unit, for example, would make the rest of Boeing’s for-sale space assets more attractive to buyers who have no interest in something that is as much of a fixer-upper as Starliner.
In another comment on another site awhile back I opined that Starliner ought, ideally, to go to a NewSpace company best equipped to fix its myriad shortcomings. Given that Starliner’s number one weakness is thrusters, I figured Impulse Space would be the ideal entity to convert this particular sow’s ear into a silk purse. Run by Tom Mueller, the creator of SpaceX’s Merlin engine, Impulse, best known as a space tug company, also makes thrusters – of which the space station start-up Vast is already buying a large quantity for use on its Haven space stations. Impulse’s business model is heavily based on the provision of in-space services using hardware launched on SpaceX rockets. A rebuilt Starliner would fit very nicely within this paradigm.
Rocket Lab is another potential buyer of some or all of Boeing’s space offerings and has a lot of recent experience in re-purposing acquired space assets.
Blue Origin has formidably deep pockets and has to be considered an obvious potential purchaser of part or all of what Boeing puts on the block.
And, given that it is already rumored to have at least kicked the tires on ULA recently, Sierra Space has to be considered a potential buyer of part or all of Boeing’s would-be space divestitures.
It has been obvious for some time that much, or even all, of Boeing would be better off under new owners/management. It seems that at least parts of Boeing may soon be exactly that. This is definitely something that bears watching closely.
Boeing’s business model has been to lock in Government contracts.
Now so many things are going wrong they just can not guarantee getting any new contracts.
And well since they have no way to compete with Space X on rocket launches……………
This sounds like good news. Boeing is certainly deserving of criticism these days, but if these means that real changes are afoot, and that the company will return its focus to where it belongs, the country will be better off for it.
Boeing was once a world-leading company for which Americans could take pride. I hope it will one day return to such a state.
No one is set up to take over the SLS and all its associated buildings, tooling and parts the government contract calls for.
Unless they sell everything off for about 25% of the original contract price.
Plus they would have to layoff a LOT of union workers.
“”excludes the unit building NASA’s Space Launch System””
The above may be one of the last Cost Plus contracts from NASA. Even so, the debacle of the SLS mobile launchers should further seal the cancelation of SLS altogether. If SpaceX is allowed to progress quickly, the ability, reusability and less expensive panoply of SpaceX rockets will cause other entities to poop or get off the pot.
Ronaldus Magnus: Boeing is not building the new mobile launch tower. Bechtel is the company screwing things up.
What makes me angry is the money from the sale will go to the very shareholders who helped choke Boeing—and (once again) it will be engineers and technicians who feel the axe.
I know the idea of nationalizing anything is anathema…but I want to see the space division go to Dynetics, Stoke—anyone who actually wants to BUILD things.
Starliner’s flaws I chalk up to lack of skills from DEI, union busting…whatever.
The worst thing Boeing ever did—except for eating MacDoug—was winning the DARPA spaceplane deal and doing nothing but sit on it. Ugh…