Boeing is looking to jettison the space business. Why it might hold on to its California satellite operation
With its manufacturing practices under scrutiny, its machinists on strike and losses piling up, Boeing is said to be considering selling parts of its fabled space business. But few industry analysts think Boeing will put its extensive El Segundo, California, satellite operations on the table.
New Boeing Chief Executive Kelly Ortberg said during a recent earnings call that the aerospace giant was considering shedding assets outside of the company’s core commercial aviation and defense businesses, adding that Boeing was better off “doing less and doing it better than doing more and not doing it well.”
That could mean that Boeing sees no future for its troubled Starliner spacecraft, which was developed to service the International Space Station. The Arlington, Virginia, aerospace giant also has been trying to exit its United Launch Alliance joint launch venture with Lockheed Martin. Both programs face stiff competition from Elon Musk’s SpaceX, which recently announced it was moving its headquarters from Hawthorne to Brownsville, Texas.
