Report predicts both Boeing and Airbus will sell off their space divisions this year
According to an analysis of industry trends by the company Space Capital, it predicts that both Boeing and Airbus will sell off their space divisions this year.
According to Space Capital’s latest investment trends report released Jan. 23, these aerospace giants are struggling to maintain pace with the rapidly evolving space sector. “These divestitures by entrenched government contractors marks a pivotal moment in the space economy, as it changes the competitive landscape, establishes a new power broker system, and creates new opportunities and risks in the government’s extended capabilities in space,” the report states.
This prediction for Boeing is not a surprise, especially as the company has also recently announced it expects to take a $1.7 billion loss in the fourth quarter of 2024 from five different program in its Defense, Space and Security business unit.
Most of those charges will go towards two programs: $800 million for the KC-46A tanker and $500 million for the T-7A trainer aircraft. That leaves $400 million in charges for Starliner as well as the VC-25B presidential aircraft and MQ-25 drone.
Airbus’s space division is likely in trouble because of the failure of its Ariane-6 to compete successfully in the modern launch market. It has obtained some launch contracts, but not as many as expected because, as an expendable rocket, it costs too much to launch.
Readers!
Please consider supporting my work here at Behind the Black. Your support allows me the freedom and ability to analyze objectively the ongoing renaissance in space, as well as the cultural changes -- for good or ill -- that are happening across America. Fourteen years ago I wrote that SLS and Orion were a bad ideas, a waste of money, would be years behind schedule, and better replaced by commercial private enterprise. Only now does it appear that Washington might finally recognize this reality.
In 2020 when the world panicked over COVID I wrote that the panic was unnecessary, that the virus was apparently simply a variation of the flu, that masks were not simply pointless but if worn incorrectly were a health threat, that the lockdowns were a disaster and did nothing to stop the spread of COVID. Only in the past year have some of our so-called experts in the health field have begun to recognize these facts.
Your help allows me to do this kind of intelligent analysis. I take no advertising or sponsors, so my reporting isn't influenced by donations by established space or drug companies. Instead, I rely entirely on donations and subscriptions from my readers, which gives me the freedom to write what I think, unencumbered by outside influences.
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According to an analysis of industry trends by the company Space Capital, it predicts that both Boeing and Airbus will sell off their space divisions this year.
According to Space Capital’s latest investment trends report released Jan. 23, these aerospace giants are struggling to maintain pace with the rapidly evolving space sector. “These divestitures by entrenched government contractors marks a pivotal moment in the space economy, as it changes the competitive landscape, establishes a new power broker system, and creates new opportunities and risks in the government’s extended capabilities in space,” the report states.
This prediction for Boeing is not a surprise, especially as the company has also recently announced it expects to take a $1.7 billion loss in the fourth quarter of 2024 from five different program in its Defense, Space and Security business unit.
Most of those charges will go towards two programs: $800 million for the KC-46A tanker and $500 million for the T-7A trainer aircraft. That leaves $400 million in charges for Starliner as well as the VC-25B presidential aircraft and MQ-25 drone.
Airbus’s space division is likely in trouble because of the failure of its Ariane-6 to compete successfully in the modern launch market. It has obtained some launch contracts, but not as many as expected because, as an expendable rocket, it costs too much to launch.
Readers!
Please consider supporting my work here at Behind the Black. Your support allows me the freedom and ability to analyze objectively the ongoing renaissance in space, as well as the cultural changes -- for good or ill -- that are happening across America. Fourteen years ago I wrote that SLS and Orion were a bad ideas, a waste of money, would be years behind schedule, and better replaced by commercial private enterprise. Only now does it appear that Washington might finally recognize this reality.
In 2020 when the world panicked over COVID I wrote that the panic was unnecessary, that the virus was apparently simply a variation of the flu, that masks were not simply pointless but if worn incorrectly were a health threat, that the lockdowns were a disaster and did nothing to stop the spread of COVID. Only in the past year have some of our so-called experts in the health field have begun to recognize these facts.
Your help allows me to do this kind of intelligent analysis. I take no advertising or sponsors, so my reporting isn't influenced by donations by established space or drug companies. Instead, I rely entirely on donations and subscriptions from my readers, which gives me the freedom to write what I think, unencumbered by outside influences.
You can support me either by giving a one-time contribution or a regular subscription. There are four ways of doing so:
1. Zelle: This is the only internet method that charges no fees. All you have to do is use the Zelle link at your internet bank and give my name and email address (zimmerman at nasw dot org). What you donate is what I get.
2. Patreon: Go to my website there and pick one of five monthly subscription amounts, or by making a one-time donation.
3. A Paypal Donation or subscription:
4. Donate by check, payable to Robert Zimmerman and mailed to
Behind The Black
c/o Robert Zimmerman
P.O.Box 1262
Cortaro, AZ 85652
You can also support me by buying one of my books, as noted in the boxes interspersed throughout the webpage or shown in the menu above.
Sad. As I thought a couple of weeks ago with Robert’s “Boom about to go supersonic” article, Boeing should have been at the cutting edge developing new technologies and materials.
All those decades and billion$ wasted.
How would Space Capital know this–insider shenanigans?
They betting against Boeing as part of another short’?
What is wrong with using upgraded F-16’s as new trainers.
BTW I hated the t-38 trainers. the engines literally hurt my ears while standing next to them.
Even at idle they could vibrate your teeth and bones and were so loud you could not hear anything else. Even your own screams.
F-20 Tigershark would have been better?