Boeing Explores Sale of Space Business

(Reuters) – Boeing is exploring the sale of parts of its space business, according to the Wall Street Journal, citing sources familiar with the matter.

The NASA business under consideration includes the troubled Starliner space vehicle and operations supporting the International Space Station, but it excludes the unit responsible for NASA's Space Launch System.

Shares of the U.S. planemaker rose 0.6% in afternoon trading.

Boeing stated, “We don’t comment on market rumors or speculation,” in response to inquiries regarding the potential sale.

The Starliner spacecraft has faced years of development delays and technical issues, leading to over $1.8 billion in private cost overruns. Meanwhile, two NASA astronauts sent to the International Space Station via Boeing are currently stuck there and are expected to return in February using a SpaceX craft.

For decades, Boeing has built and maintained modules for the International Space Station, which is set to be retired in 2030. NASA is considering replacing it with privately owned space stations.

Additionally, Boeing is dealing with a five-week strike involving 33,000 workers at its civil plane-making division, halting production of its popular 737 MAX jets, as well as 767 and 777 widebodies.

New CEO Kelly Ortberg aims to lead Boeing out of various crises in its plane-making business. During a recent quarterly call with analysts, he expressed his desire for Boeing to focus on “doing less and doing it better,” although he did not mention the space division.