Boeing Explores Sale of Space Business (theverge.com) 24
According to the Wall Street Journal, Boeing is weighing the sale of its space division. "The plans, which are reportedly at an early stage, could involve Boeing offloading the Starliner spacecraft and its projects supporting the International Space Station," reports The Verge. From the report: Boeing is facing a series of predicaments, including a fraud charge over 737 Max plane crashes and Starliner issues that left two astronauts at the ISS for months. Just this week, a Boeing-made satellite for Intelsat stopped working and fell apart suddenly after suffering an "anomaly."
"We're better off doing less and doing it better than doing more and not doing it well," Boeing CEO Kelly Ortberg said during an earnings call this week. "Clearly, our core of commercial airplanes and defense systems are going to stay with the Boeing Company for the long run. But there's probably some things on the fringe there that we can be more efficient with or that distract us from our main goal here."
However, sources tell the WSJ that Boeing will likely continue to oversee the Space Launch System, which will eventually help bring NASA astronauts back to the Moon. It's also reportedly expected to hang onto its commercial and military satellite businesses.
"We're better off doing less and doing it better than doing more and not doing it well," Boeing CEO Kelly Ortberg said during an earnings call this week. "Clearly, our core of commercial airplanes and defense systems are going to stay with the Boeing Company for the long run. But there's probably some things on the fringe there that we can be more efficient with or that distract us from our main goal here."
However, sources tell the WSJ that Boeing will likely continue to oversee the Space Launch System, which will eventually help bring NASA astronauts back to the Moon. It's also reportedly expected to hang onto its commercial and military satellite businesses.
They should sell off all the engineers too. (Score:1)
Re: (Score:2)
Re: They should sell off all the engineers too. (Score:2)
Wgo would buy them? (Score:2)
I mean everything there seems over budget, so would cause losses to a buyer and with SpaceX as direct competitor, getting the same efficiency would not be possible with current structures. Add to that Blue origin coming up too..
Re: (Score:2, Troll)
I'll buy it. $10 for broken tech stuff is not unusual on Ebay, and if you can't fix it, you can often resell the parts for more than you paid the broken whole.
So... what's sellable? (Score:4, Informative)
https://www.boeing.com/company... [boeing.com]
"Defense, Space & Security
Defense, Space & Security (BDS) is a diversified, global organization providing leading solutions for the design, production, modification, service and support of commercial derivatives, military rotorcraft, satellites, human space exploration and autonomous systems. It helps customers address a host of requirements through a broad portfolio that includes KC-46 aerial refueling aircraft, based on the Boeing 767 commercial airplane; AH-64 Apache helicopter; the 702 family of satellites; CST-100 Starliner spacecraft; and the autonomous Echo Voyager. Driven by the Boeing vision to connect, protect, explore and inspire the world through aerospace innovation, BDS is seeking ways to better leverage information technologies and continues to invest in the research and development of enhanced capabilities and platforms."
Well, the Starliner is overbudget and late. Fine for a cost plus contract, but lethal for fixed cost. If they can't find a sucker to pawn it off on, it'll save them money just cancelling the contract, assuming there are no delivery penalties.
"The company had warned Oct. 11 that it would take a total of $2 billion in charges in the third quarter on four fixed-price programs in its Defense, Space and Security, or BDS, business unit, including Starliner. The company did not state then how large the Starliner charge would be, although $1.6 billion in those charges were allocated to two military aircraft programs.
The latest charge brings the total losses Boeing has recorded on Starliner to about $1.85 billion. The mounting losses have raised questions about whether Boeing will ever be able to make a profit on Starliner and might instead choose to end it. "
https://spacenews.com/boeing-l... [spacenews.com]
So the question is, what are the other 3 fixed-price programs? Because those probably will also be on the chopping block in order to stop the bleeding.
https://finance.yahoo.com/news... [yahoo.com]
"The KC-46s roughly $661 million charge stems partly from the work stoppage that began Sept. 13, the company said, which hit work on the 767 airliner that form the foundation of the refueling aircraft.
The strike also led the company to decide to wrap up most of its 767 production, and beginning in 2027, only produce 767-2C aircraft to support the KC-46 program, Boeing said. This decision to cease production of most 767s also contributed to the program’s charges."
So those will be one-offs that will no longer be able to get scale efficiencies from civilian side production... but on the other hand, if they're not building the 767 anymore, the production lines and tooling could be spun off.
"Boeing also racked up a roughly $908 million charge on the Air Force’s T-7 Red Hawk trainer, which was driven by expected higher costs on production contracts beginning in 2026. The Commercial Crew space capsule program had a $250 million charge, and the Navy’s MQ-25 Stingray program had a $217 million charge, its first of the year.
When combined with $250 million in previous charges on the VC-25B Air Force One program, Boeing defense’s five major fixed price development programs have incurred $3.3 billion in losses so far this year."
Well, they're probably not going to give up the Air Force one contract. But it is going to continue to be a drag on earnings, since the delivery date has been pushed back so far.
https://simpleflying.com/boein... [simpleflying.com]
"Recently, Breaking Defense reported that the maiden flight of the new aircraft has been pushed back from November 2024 to March 2026. Boeing has faced numerous delays over the years, including major design issues and
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Regarding the 702 bus satellites... I don't think any buyer is going to step up until a root cause has been found for the latest Intelsat incident. Disintegrating multi-million dollar satellites that you have to make good on are not good for the bottom line.
https://spacenews.com/intelsat... [spacenews.com]
Well I'm still seeing a disconnect (Score:3)
This would be a more convincing statement... except for the fact that they're having huge issues inside their supposed core competency areas as well.
In exactly what part of their business does she think Boeing is currently "doing better"?
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This would be a more convincing statement... except for the fact that they're having huge issues inside their supposed core competency areas as well.
In exactly what part of their business does she think Boeing is currently "doing better"?
Well, the idea that they could be trusted for commercial airplanes is clearly fanciful but the defense systems aspect isn't so bad - the military has a lot of uses for a high speed airborn projectile that flies unpredictably and impacts spectacularly.
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Seems to be doing better on the older/existing products. All of the new products are garbage.
They should ofload SLS as well... (Score:2)
Sell both SLS and the capsule stuff to whichever of the "new-generation" competitors to SapceX is the most likely to sort out all the problems and give NASA the reliable "second source" for launching people and cargo into Space they need alongside SpaceX.
They could even commit to keeping all the jobs in the old Space Shuttle factories (the ones certain senators are so desperate to keep around) but to making something better than the junk that is SLS using the same factory.
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I suspect that sort of policy is a big part of the problem. When the doc cuts away the gangrene no one tries to keep the amputated limb alive.
Re:They should ofload SLS as well... (Score:4, Interesting)
The senate lunch system was literally invented to keep Boeing's space division running. Without it this division doesn't exist.
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That's the point, Boeing would sell off its entire space division (including SLS) and go back to focusing on airplanes instead.
The SLS should be cancelled (Score:2)
"Boeing will likely continue to oversee the Space Launch System"
The Space Launch System (SLS) should be cancelled. Here is an article by Bloomberg that explains why every clearly: https://www.bloomberg.com/opin... [bloomberg.com]
We sacked everyone with a brain (Score:5, Insightful)
now we can't design shit.
Time for old movie quote (Score:2)
"I'll buy that for a dollar!"
No shit it's hanging on to SLS. (Score:2)
Sell? To whom? (Score:2)
An undertaker?
Critical MIC infrastructure (Score:2)
Sensible - if there are any takers (Score:2)
"...Boeing is weighing the sale of its space division".
How much are they offering for someone to take it off their hands?