A Boeing assembly building is seen during a welcome ceremony prior to the agency's launch of SpaceX Crew 9 at Kennedy Space Center in Cape Canaveral, Florida, on September 21, 2024. Image: Miguel J. Rodriguez Carrillo/Stringer (Getty Images)
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Boeing (BA-0.03%), an aerospace company with a storied past of working with NASA, is considering selling its space-focused programs, including its Starliner spacecraft and operations of the International Space Station (ISS).
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Sources told The Wall Street Journal that the move is part of new Boeing CEO Kelly Ortberg's strategy to simplify Boeing's portfolio amid continued financial challenges.
Boeing's stock price rose 1% that day. The company did not respond to a request for comment from Quartz.
Ortberg, who took over as CEO in August, has prioritized restructuring and asset sales to offset Boeing's financial losses.
The company's largest union recently extended its strike, halting most aircraft production. Members of the International Association of Machinists and Aerospace Workers (IAM), the union representing striking employees, rejected the company's latest proposal on Wednesday. Two key issues are the size of the raises — IAM is seeking a 40% raise — and the restoration of Boeing's pension, which was cut a decade ago as a perk for new employees.
At the same time, the company's defense and space division was hampered by delays, resulting in losses of $3.1 billion in the first three quarters of 2024.
“It's better to do less and do better than to do more and do it less well,” Ortberg told investors on a conference call this week.
Boeing and NASA's partnership goes back decades, from supporting the Apollo program to being the prime contractor for the ISS. These days, however, SpaceX has largely taken over the role as NASA's primary partner. After problems arose during Starliner's debut manned spaceflight, NASA chose to transport astronauts on SpaceX's Crew Dragon.
Boeing is expected to continue its role overseeing NASA's Space Launch System (SLS), the rocket the administration plans to use for future moon missions. SLS completed its first mission in 2022, despite facing quality control challenges.
Potential buyers for the Boeing-NASA contract also include Blue Origin, owned by Jeff Bezos. Boeing previously had discussions with Blue Origin about taking over parts of the NASA program.
