Navigating Uncertain Waters: Boeing's Aerospace Business Challenges and Potential Sales Amid Starliner Setbacks
ICARO Media Group
**Boeing Faces Challenges and Potential Sales Amid Starliner Setbacks**
Boeing is navigating uncertain waters regarding the potential sale of its aerospace business. Although there is no clarity on whether a sale will occur, speculation continues to rise. One possibility is that Boeing might retain its involvement with the Space Launch System (SLS) rocket for NASA's Artemis program. The SLS played a crucial role in the successful Artemis 1 uncrewed mission to the lunar orbit in 2022 and is set to send astronauts around the moon by 2025 with Artemis 2.
The company is also involved in United Launch Alliance (ULA), a joint venture with Lockheed Martin, owning a 50% stake. ULA, primarily focused on national security launches, successfully launched the Starliner mission on June 5 using its Atlas V rocket. Reports suggest that both Boeing and Lockheed Martin are looking to sell ULA as it transitions to launches using the new Vulcan Centaur rocket, which had its second launch on October 2.
Boeing has faced significant financial challenges with the Starliner program. According to a filing with the U.S. Securities and Exchange Commission on October 23, Boeing recorded a $250 million charge in the third quarter of its fiscal year due to schedule delays and increased testing and certification costs for Starliner. This followed a $125 million loss reported in the second quarter of the same year.
The Starliner program is part of Boeing's broader defense, space, and security division, which recorded $3.1 billion in losses against $18.5 billion in revenues for the first nine months of 2024. In light of these setbacks, Ted Colbert, the head of the division, was removed from his position in September.
While the Starliner has been a focal point in space-related news for Boeing this year, its journey has not been smooth. The most recent Crew Flight Test (CFT) mission to the International Space Station (ISS) revealed unexpected propulsion problems despite previous efforts to address thruster issues seen in 2019 and 2022. During the mission, five out of 28 thrusters in the reaction control system failed, causing delays and raising concerns.
Despite these issues, the Starliner managed to dock with the ISS on June 6. However, after nearly two months of investigation, Boeing and NASA failed to identify and rectify the root cause of the thruster failures. Eventually, NASA deemed it too risky to use Starliner for the astronaut's return journey to Earth.
Boeing continues to face a complex array of challenges as it seeks to stabilize its aerospace ventures and resolve the issues plaguing the Starliner program.