Boeing Considers Exiting Space, Weighs Sale of Division to Jeff Bezos' Blue Origin

Boeing is reportedly exploring an exit from the space industry, eyeing a potential sale of its space division to Jeff Bezos' Blue Origin. The sale, fueled by challenges with the Starliner program and increased regulatory pressure, could shift Boeing's legacy role in U.S. space missions.

Boeing’s Space Division Could Be Heading Toward a Major Shift

Boeing may be opting out of NASA's forthcoming return to the lunar surface and space altogether, despite the fact that Boeing assisted NASA in reaching the Moon in 1969.

In the midst of its problems getting the Starliner certified to fly, the aerospace behemoth is contemplating selling its space division. The spacecraft will not be used for any future missions due to its disastrous crewed test trip, which left two men stuck in orbit until next year.

Mounting Crises Impact Boeing’s Core Business

According to Jalopnik, many crises are affecting Boeing's commercial airplane industry, and the company is trying to deal with its space problem on top of everything else. Following the January 737 Max door plug blowout, federal officials scrutinized Boeing's production quality like never before.

Boeing was ordered to pay roughly $700 million by the Department of Justice for violating its 2021 settlement on the two fatal incidents with the 737 Max. A crucial 737 Max contractor who was formerly an affiliate of Boeing, Spirit AeroSystems, had to be acquired by Boeing in July for $4.7 billion.

Financial Strains Amplify Challenges in the Space Program

According to Simple Flying, the Boeing Starliner added $250 million to the $1.8 billion in program overruns last quarter. More than 33,000 Boeing machinists have gone on strike for better pay, adding insult to injury.

Boeing lost billions of dollars due to the continuing strike that started in September and suspended production of the 737, 767, and 777 jets.

A New CEO Takes Drastic Measures to Stabilize Boeing

As a result of Boeing's disastrous situation, Dave Calhoun resigned as CEO in August. Now that Kelly Ortberg is in charge, she has to mend everything. The Wall Street Journal reports that he has stated his willingness to divest as much of Boeing as possible in order to turn the company around.

It was reported that Ortberg, who assumed the role of Boeing CEO in August, was considering selling off assets and removing troublesome programs. According to him, practically everything is up for grabs outside of the main commercial and defense enterprises.

“We’re better off doing less and doing it better than doing more and not doing it well,” Ortberg said on a call with analysts this week. “What do we want this company to look like five and 10 years from now? And do these things add value to the company or distract us?”

Potential Sale to Blue Origin Could Reshape U.S. Space Industry

Additionally, Ortberg verified that Boeing is negotiating the possible sale of its space division with Blue Origin, the private space company founded by Amazon founder Jeff Bezos. Both businesses work together on rocket development and are contractors for the Artemis program run by NASA.

If the deal goes through, Blue Origin will instantly be a stronger competitor to SpaceX. This would also be the last chapter in Boeing's space legacy, which includes their roles as an integral part of the Apollo program and the construction of the American portion of the International Space Station.