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.
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.