I recently reported that a Boeing-made satellite, Intelsat 33e, exploded in space this week following an “anomaly,” resulting in its total loss.
Add to the Starliner troubles, with its crew forced to stay at the International Space Station until February, and a strike by unhappy union members, 2024 has been a dreadful year for the firm’s iconic space business.
Now comes news that Boeing may be jettisoning space projects altogether.
The beleaguered company is exploring a sale of its storied NASA business, including the troubled Starliner space vehicle and operations that support the International Space Station, according to people familiar with the matter.The effort, part of a strategy by Boeing’s new Chief Executive Officer Kelly Ortberg to streamline the company and stem its financial losses, is at an early stage and might not result in a deal.Boeing faces a deepening financial crisis. Its largest labor union has rejected two contract proposals and extended a strike that has halted most of its airplane production. Meanwhile, Boeing’s space and defense projects have been hobbled by delays and cost overruns.
The move appears to be strategic, as resources can be directed to its core aerospace and defense sectors. This possible sale is sensible because the ISS, which uses Boeing-made equipment, is slated for retirement in 2030.
The aerospace company’s Starliner spacecraft has been hindered for years by development delays and technical problems, with more than $1.8 billion in private cost overruns….Boeing for decades has built and maintained modules of the International Space Station, which faces retirement in 2030 and replacement by privately owned space stations being considered by NASA.Boeing is also grappling with a five-week strike by 33,000 workers at its civil planemaking arm, leading to a halt in production of its best-selling 737 MAX jets, and 767 and 777 widebodies.The company’s new CEO, Kelly Ortberg, has sought to pull Boeing out of crises in its planemaking business. On a quarterly call with analysts on Wednesday, Ortberg said he wants Boeing “doing less and doing it better,” but did not mention the space unit.
Interestingly, Boeing and Lockheed Martin have recently been in talks to sell their rocket-launching joint venture, United Launch Alliance, to Sierra Space. The potential transaction could value ULA at approximately $2 billion to $3 billion.
A deal to sell ULA, a major provider of launch services to the U.S. government and a top rival to Elon Musk’s SpaceX, would mark a significant shift in the U.S. space launch industry as ULA separates from two of the largest defense contractors to a smaller, privately held firm.The potential sale comes after years of speculation about ULA’s future and failed attempts to divest the joint venture over the past decade. In 2019, Boeing and Lockheed Martin reportedly explored selling ULA but couldn’t agree on terms with potential buyers.The negotiations could end without a deal, the sources said.ULA referred Reuters to Boeing and Lockheed for comment. The two companies said they do not comment on market speculation. Sierra did not immediately return a request for comment.
If the sale goes through, it will expand Sierra Spaces’ capabilities and accelerate its crewed launch program.
Sierra Space, spun off from Sierra Nevada Corp in 2021, is evaluating the acquisition of ULA as part of its broader ambitions, which include advancing its Dream Chaser spaceplane and developing a private space station in collaboration with Blue Origin. A successful acquisition would enable Sierra Space to internally manage launches for its projects, potentially accelerating its crewed spaceflight initiatives.
Robust competition can really help move this country along in the Space Race. Here’s hoping for the best possible outcomes when and if these deals go through.
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