While Boeing’s past in the space industry is undeniable, it’s the company’s present and future that’s the problem. Most notably, the aerospace giant’s cash issues have the company looking to raise $19 billion in a stock offering while still pursuing other sources of revenue. The company lost $6 billion in the third quarter and has already begun selling off assets, like the deal that sent small defense subsidiary, Digital Receiver Technology, to Thales Defense & Security last week.
Following the mixed success that saw Boeing’s Starliner capsule reach the International Space Station, but return empty, the Wall Street Journal reports that the company’s entire space division might be on the block.
Most Read on IEN:
According to the report, the rumblings are in the early stages, and a deal isn’t close, but Boeing’s new CEO, Kelly Ortberg, has been clear with his intentions to narrow the company’s focus. In a memo to employees this month, Ortberg said Boeing needs to “focus our resources on performing and innovating in the areas that are core to who we are.” And that renewed focus just might not include the company’s space division.
While SpaceX has replaced Boeing as NASA’s preferred partner, Blue Origin, the commercial space operation owned by Amazon’s Jeff Bezos, could be a potential suitor. Boeing reportedly met with Blue Origin before Ortberg came aboard. The company is already priming its New Glenn rockets to compete with SpaceX for upcoming missions from NASA and other third parties.
According to Jalopnik, Ortberg confirmed Boeing’s discussions with Blue Origin. Blue Origin already does some business with NASA, including work on the Artemis lunar lander program.
Last month, Ortberg fired Ted Colbert, the now former president and CEO of Boeing’s space and defense business, Boeing Defense, Space & Security. COO Steve Parker temporarily replaced him.
Another piece that could leave Boeing’s hangar is United Launch Alliance, a joint venture with Lockheed Martin specializing in national security launches. The venture has reportedly spent the last year looking for a buyer.
While Boeing has been integral to NASA missions since Neil Armstrong took that small step, the next big leap might be taken by Blue Origin.
Click here to subscribe to our daily newsletter featuring breaking manufacturing industry news.