Boeing is navigating a precarious financial landscape as its newly appointed CEO, Kelly Ortberg, considers selling the company’s space division. This decision emerges amid significant challenges, including ongoing litigation related to the 737 Max crashes and difficulties faced by the Starliner spacecraft. Reports from The Wall Street Journal indicate that plans for the potential sale are still in the preliminary stages, with Starliner and its initiatives supporting the International Space Station possibly on the chopping block.
Since taking the helm in August, Ortberg has expressed the need for a strategic reevaluation of Boeing’s operations. The company is currently grappling with substantial challenges, including a recent satellite failure for Intelsat which suffered from an unforeseen anomaly, adding to the growing list of issues. “We’re better off doing less and doing it better than doing more and not doing it well,” Ortberg stated during a recent earnings call, emphasizing the necessity of streamlining operations.
Despite these changes, sources indicate that Boeing intends to retain control over the Space Launch System, a program crucial for NASA’s future missions to the Moon. The company plans to continue its commercial and military satellite ventures, which form the backbone of its aerospace offerings. However, the need for significant restructuring has never been more apparent, especially as Boeing reported a staggering $6.17 billion in losses last quarter, with an alarming $250 million burned through on the Starliner project alone. Financial analysts predict that these challenges will persist at least through 2025.
As Boeing seeks to navigate these troubled waters, Ortberg’s leadership will be crucial in determining the future trajectory of the company. The path ahead is fraught with uncertainties, but by potentially divesting from its space business, Boeing could focus on enhancing its core operations in commercial airplanes and defense systems. The strategic rethink could allow the aerospace giant to better allocate resources and reclaim stability in an industry facing fierce competition and technological demands. With Ortberg at the forefront, the hope is to reshape Boeing’s identity as it confronts the myriad challenges inherent in the current aerospace landscape.
