Media reports state that Boeing Co. (BA) is considering selling its space business as losses mount at the commercial aircraft manufacturer.
The Wall Street Journal was the first to report that Boeing, which is in the midst of a strike by its machinist union, is exploring a sale of its space business that includes the Starliner spacecraft and operations that support the International Space Station.
How much money Boeing could get for its space unit has not been disclosed. But the sale is reportedly part of a strategy by Boeing’s new CEO Kelly Ortberg to stem financial losses.
In addition to the machinists strike that began in September, Boeing is dealing with enhanced regulatory oversight owing to several safety issues with its airplanes.
The machinist strike is estimated to be costing the company $1 billion U.S. a month with no end in sight after the union has rejected multiple contract offers put forward by management.
The company recently reported a $6.2 billion U.S. loss for this year’s third quarter as it grapples with labor and safety problems.
Boeing has worked with the U.S. National Aeronautics and Space Administration (NASA) for decades, going back to the Moon landing and creation of the International Space Station.
Going forward, Boeing is expected to retain its commercial and military satellite businesses that are its main revenue generators.
Boeing’s stock has declined 38% year-to-date and currently trades at $155.01 U.S. per share.
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