Boeing’s problems extend into orbit. Is space big business for them?
Boeing’s problems extend into orbit. Is space big business for them?
Boeing reports quarterly earnings on Wednesday morning. The company best known for airplanes has struggled to safely manufacture its 737 MAX passenger jets, but they’ve also struggled with one high-profile spacecraft.
Issues with Boeing’s Starliner capsule have left two NASA astronauts stuck on the International Space Station for nearly two months now.
Boeing had a tough time making the Starliner, according to Nicolas Owens, equity analyst at Morningstar.
“[It] cost more than expected, came in late — so not a great showing,” he said.
Even though Boeing has worked on spacecraft periodically since the ’60s, “the people who did it in the ’60s don’t work there anymore, so the institutional knowledge has atrophied,” Owens added.
And space just isn’t a big moneymaker for Boeing, he said. The company made $78 billion in total revenue last year. Owens estimates only 10% came from spacecraft.
Plus, there’s not much room to grow, per Richard Aboulafia, managing director of AeroDynamic Advisory.
“It’s the most vulnerable to disruptions of all of their businesses,” he said — thanks to upstart rocket companies, like Blue Origin and SpaceX.
For Boeing, “when they look at, you know, possible business units that might be disposed of to bring in cash, space is very high on that list,” said Aboulafia.
For now, the astronauts stuck on the Space Station might have to switch carriers to get home.
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