Boeing's Space Division in Crisis: $250M More Losses and Potential Sale Talks with Blue Origin

BigGo Editorial Team
Boeing's Space Division in Crisis: $250M More Losses and Potential Sale Talks with Blue Origin

Boeing's space ambitions are facing unprecedented challenges as the aerospace giant grapples with mounting financial losses and considers divesting its historic space division, marking a potential end to its decades-long legacy in space exploration.

Financial Turmoil and Mounting Losses

The troubled Starliner spacecraft program has encountered another significant setback, with Boeing booking an additional $250 million in forward losses during Q3 2023. This follows a previous $125 million loss in Q2, bringing the total recent losses to $375 million for the program.

Technical Challenges Plague Starliner

The spacecraft's problems have been numerous:

  • Thruster malfunctions during docking
  • Design flaws in parachute lines
  • Multiple delays due to leaks
  • Computer faults
  • Valve problems

The June 2023 Crew Flight Test (CFT) mission, while achieving launch, experienced complications that led to an extended stay in space. The mission, originally planned for two weeks, stretched to two months as engineers conducted extensive testing before ultimately deciding to return the spacecraft uncrewed.

Potential Sale to Blue Origin

In a surprising development, Boeing has reportedly engaged in preliminary discussions with Jeff Bezos's Blue Origin about transferring some NASA programs. This consideration includes:

  • The Starliner space taxi program
  • International Space Station operations
  • Excluding the Space Launch System rocket program

Impact on NASA's Commercial Crew Program

NASA maintains its commitment to having two U.S.-based crew transport options, with SpaceX currently being the primary provider. The agency aims for an operational Starliner flight in 2025, though this timeline remains uncertain pending system certification.

Future Outlook

Under new CEO Kelly Ortberg's leadership, Boeing is reevaluating its non-core businesses, suggesting a potential restructuring of its space division. This strategic shift could mark the end of Boeing's illustrious space legacy, which includes contributions to the Apollo program and the Space Shuttle.

The company faces a critical decision point as it balances its historic space presence against mounting financial pressures and operational challenges. The outcome could significantly reshape the landscape of commercial space operations in the United States.