Boeing's New CEO Considers Selling Space Unit

Boeing's Struggles with Starliner Mission

Boeing's failed Starliner spacecraft mission to the International Space Station (ISS) this past summer may have lasting repercussions. The mission left two astronauts stranded on the ISS, necessitating a rescue by Elon Musk's SpaceX Crew Dragon spacecraft early next year.

Boeing's New CEO Mulls Over Sale

A recent report from the Wall Street Journal suggests that Boeing's new CEO, Kelly Ortberg, is considering selling the company's NASA business, including the unit responsible for the Starliner. This move is part of Ortberg's strategy to streamline the company and reduce its financial losses. However, the process is still in its early stages and may not result in a deal.

Boeing's Role in Future Space Missions

Despite these considerations, Boeing is expected to maintain its role overseeing the Space Launch System (SLS). The SLS is a large rocket that NASA is paying Boeing to construct for future lunar exploration missions.

Potential Collaboration with Blue Origin

Before Ortberg's appointment, Boeing had discussions with Blue Origin, Jeff Bezos' space company, about taking over some of the NASA programs. Blue Origin has been preparing its own rockets for future NASA and commercial missions, aiming to compete with SpaceX.

Boeing's Recent Challenges

Boeing has faced a series of difficulties, including malfunctions with the Starliner spacecraft this summer, which returned to Earth without a crew in early September. Additionally, two of its 737 Max jets crashed in 2018 and 2019, resulting in 346 fatalities. Earlier this year, a door plug was ripped off a Max jet.

SpaceX's Success Despite Smaller Contract

Interestingly, Boeing received $4.2 billion to develop Starliner, while SpaceX was awarded just $2.6 billion to create Crew Dragon over a decade ago. Despite the smaller contract, SpaceX has achieved significant success and now leads the space industry.

SpaceX's Achievements

According to data from BryceTech, SpaceX launched 525 spacecraft into orbit in the first quarter, significantly outpacing China and Russia. This success is largely due to SpaceX's Starlink deployment in Low Earth Orbit (LEO), which provides high-speed internet coverage to millions of customers worldwide.

Boeing's Ongoing Labor Issues

Boeing's challenges continue with a five-week strike that was extended earlier this week after the union rejected a new labor contract. The Wall Street Journal was the first to report that Boeing was exploring asset sales on Oct. 20.

Boeing's Financial Struggles

Boeing has filed a $25 billion shelf registration amid dwindling cash reserves as it seeks to protect its investment grade credit ratings. The company also reported a net loss of $6.17 billion for the third quarter.

Bottom Line

The struggles faced by Boeing highlight a shift in the space industry, with SpaceX, led by Elon Musk, now leading the space race. This shift represents a significant change in the power dynamics within the industry. What are your thoughts on this development? Do you believe this shift will have lasting impacts on the future of space exploration? Share this article with your friends and join the conversation. Don't forget to sign up for the Daily Briefing, which is delivered every day at 6pm.