Boeing Considers Future of Starliner Space Program

Boeing is currently evaluating the future of its Starliner space capsule program, which has faced numerous challenges, as part of a comprehensive portfolio review led by new Chief Executive Officer Kelly Ortberg.

An individual familiar with the situation stated that this assessment is still in the early stages and that no final choices regarding the potential divestment of the Starliner program have been established yet. The company is keeping its options open, which might include retaining the business.

As per the source, Boeing is not actively looking to sell its overarching space operations or to offload its contracts with NASA related to the International Space Station (ISS) or the Space Launch System, which is slated to transport American astronauts back to the moon. This clarification comes after a report from The Wall Street Journal suggested that Boeing was contemplating the sale of its NASA division.

A Boeing spokesperson mentioned via email that the company does not comment on market rumors or speculation.

Divesting from Starliner could relieve Boeing from a notoriously difficult program that has accumulated over $1.8 billion in charges, including $250 million in the third quarter, following a troubled flight test that left two American astronauts stranded at the ISS for an extended period.

The review of the Starliner program coincides with Ortberg's pursuit to resolve an ongoing labor strike that has halted the production of vital aircraft, including the lucrative 737 Max. This production shutdown is putting additional pressure on the company’s already tight finances, with credit ratings nearing junk status and escalating cash loss projected to continue into 2025.

During an earnings call on October 23, Ortberg expressed his intent to prioritize resources on Boeing’s central commercial aircraft and defense divisions while simplifying its extensive portfolio. He initiated a review of the company’s operations, expecting to have conclusions by the end of the year.

In Ortberg’s words, "We’re better off doing less and doing it better than doing more and not doing it well."

Before the recent complications, the future of Starliner appeared uncertain beyond plans for a few more missions to the ISS for NASA. Meanwhile, SpaceX's Crew Dragon capsule has conducted 43 missions to the ISS since 2019, transporting both crew and cargo.

Should Boeing step back from its space endeavors, it would signify a significant transformation for a corporation that has played a pivotal role in America's journey of exploration beyond earth. Boeing's space legacy stretches back over 50 years, beginning with the Saturn V rocket that first took humans to the moon. Today, Boeing is involved in constructing satellites, the covert X-37B space plane, the SLS moon rocket, and managing the ISS.

However, in recent years, Boeing has struggled to keep pace with significant advancements in technology made by competitors like SpaceX and various emerging space companies that advocate reusable rocket technology. With the ISS approaching the end of its operational life, Boeing and Lockheed Martin have also been seeking potential buyers for their joint venture known as the United Launch Alliance.

Boeing's stock remained relatively stable as of 3:01 p.m. in New York on the corresponding Friday.

Boeing, Starliner, Space