Boeing is considering selling off its space division

CEO confirmed that beyond the commercial and defence businesses, almost everything is on the table.

According to reports, aviation giant Boeing could be considering exiting the space race entirely.

The aerospace company is reportedly considering selling off its entire space division, amidst several struggles impacting its core commercial airline business.

The reports come in the aftermath of the 737 Max door plug blowout in January. Also, the Department of Justice deemed Boeing violated its 2021 settlement for the 737 Max's two fatal crashes, forcing the company to pay nearly $700 million. Boeing was also forced to pay $4.7 billion in July to acquire Spirit AeroSystems.

This, along with its struggles with the Starliner, which has two astronauts stranded in space till next year, has forced Boeing to reconsider its space business. The Starliner cost the company $250 million last year, which has only been compounded due to over 33,000 machinists going on strike. The strike resulted in the halting of production of its 737, 767, and 777 aeroplanes, further costing Boeing billions in losses.

Kelly Ortberg, CEO of Boeing, confirmed that beyond the commercial and defence businesses, almost everything is on the table. Ortberg stated, "We’re better off doing less and doing it better than doing more and not doing it well. What do we want this company to look like five and 10 years from now? And do these things add value to the company or distract us?"

Reports also state that the Boeing CEO is in discussion with Blue Origin - Jeff Bezos' private space company, for a potential sale of its space business.

Source: WSJ