Aerospace defense contractors Boeing, Lockheed Martin, Northrop Grumman, and Raytheon all show better than expected profits despite sequestration.

Chicken Little report: Aerospace defense contractors Boeing, Lockheed Martin, Northrop Grumman, and Raytheon all show better than expected profits despite sequestration.

It seems that each of these companies, finding their profits from defense pork to be relatively flat or dropping slightly, worked harder to sell their other products to other customers, and were generally successful. What a concept!

Boeing this week revealed a new line of small satellites, the smallest weighing less than 9 pounds, for both military and commercial operations.

The competition heats up: Boeing this week revealed a new line of small satellites, the smallest weighing less than 9 pounds, for both military and commercial operations.

This decision tells me that my worries about Boeing’s competitiveness are unfounded. Moreover, the increasing shift to building smaller satellites will once again lower costs and therefore increase the number of customers who can afford the product. The result will be a larger aerospace industry.

Boeing is about to begin wind tunnel tests of its CST-100 manned capsule.

The competition heats up: Boeing is about to begin wind tunnel tests of its CST-100 manned capsule.

This is good, but there is something about the pace of development of the CST-100 that seems mighty slow to me. Last September there were indications that Boeing might shelve the project, which were countered in November by word that they were instead considering increasing their investment.

The slow pace suggests to me that management has rejected the latter. It also suggests that while they haven’t shelved the project, they are not pushing it hard, which means that eventually it will die because it will fail to compete with other more ambitious and competitive efforts.

The Pentagon has decided to buy its launch services from more than just Boeing and Lockheed Martin.

The competition heats up: The Pentagon has decided to buy its launch services from more than just Boeing and Lockheed Martin.

Under the new plan, the Air Force can buy as many as 14 launches over the next five years from possible bidders such as Space Exploration Technologies Corp, or SpaceX, and Orbital Sciences Corp . The service may also buy as many as 36 launches from United Launch Alliance, the Lockheed-Boeing venture, with an option to purchase the other 14 launches if the competitors haven’t been certified to launch military and spy satellites that can cost up to $1 billion each.

Originally the military planned to purchase all of its launches from Boeing and Lockheed. Political pressure from SpaceX has now forced them to widen the competition, or at least, make noises that they are doing so. If you read the above paragraph closely the plan still favors the original two companies and is strongly stacked to hand all the launches over to them anyway.

Update: My pessimism above was premature. SpaceX has been awarded a contract for two launches under this new policy.

Boeing indicated today that it is considering increasing its investment in its CST-100 manned capsule in order to accelerate its development.

Good news: Boeing indicated today that it is considering increasing its investment in its CST-100 manned capsule in order to accelerate its development.

I suspect that, after Boeing in September let leak the idea that they might shelve CST-100 if the space agency didn’t give them more money, NASA management instead told them in no uncertain terms that if they didn’t show a more serious commitment to building CST-100, they might lose the contract altogether.

Boeing and the fear of competition

Boeing has indicated that it might shelve its CST-100 manned capsule, despite their recent almost half a billion dollar contract award from NASA.

This possibility illustrates why Boeing is losing market share, not only in space, but in the aviation industry. The article suggests that the NASA contract might not be enough to pay for CST-100, and that Boeing is unsure there is enough private market to make up the difference.

“That’s just for the ISS. That’s kind of the basement,” adds Elbon. More flights than those to the ISS are required he says, and Boeing is cautious about over-committing itself while future revenue streams are unclear.

I say bull hockey.
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Bigelow Aerospace has expanded its workforce as well doubled its factory space in response to the commercial contracts NASA recently awarded.

The competition heats up: Bigelow Aerospace has expanded its workforce as well doubled its factory space in response to the commercial contracts NASA recently awarded.

The company just opened a 185,000-square-foot addition, bringing its North Las Vegas plant up to about 350,000 square feet. It slashed its work force from 150 before the recession to 50 during the downturn; now, it’s looking to jump back up to 90 workers by Christmas. It’s hiring structural, mechanical and electrical engineers, as well as chemists, molecular biologists and workers who craft composite spacecraft parts.

Hat tip to Clark Lindsey at NewSpace Watch.

Alan Boyle at NBC tonight reports that Boeing, SpaceX, and Sierra Nevada are the winning companies in the competition to provide human ferrying services to ISS.

Alan Boyle at NBC tonight reports that Boeing, SpaceX, and Sierra Nevada are the winning companies in the competition to provide human ferrying services to ISS, to be announced officially by NASA tomorrow.

The report does not provide dollar numbers. This Wall Street Journal story says that Boeing and SpaceX will be the prime contractors, which suggests that Sierra Nevada will be getting a smaller award.

Boeing and Lockheed Martin are both considering hiring the Russia aerospace company Energia to build components for the CST-100 and Orion manned capsules.

It appears that both Boeing and Lockheed Martin are considering hiring the Russia aerospace company Energia to build components for the CST-100 and Orion manned capsules.

What is going on here is that both Boeing and Lockheed Martin are looking for a subcontractor who can build these components for less money. Since labor costs in Russia are much lower than the U.S., both companies are considering Energia for this work.

This quote, however, encapsulates the cultural war that still goes on sometimes between Russia and the U.S.:

“[Russian] achievements in docking sites and [thermal protection equipment] production are quite competitive, but I am not sure that the Americans will accept our offer because they not only have the task of building a spaceship but also of gaining competence in this matter,” Dmitry Payson, director of the space and telecommunication technology department in Russia’s Skolkovo hi-tech hub, told Izvestia.

In interviewing many Russian and American space engineers over the years I have found an amazing amount of contempt from each for the work of the other, often without justification. Just as the Russians above seem to falsely think that Boeing and Lockheed Martin know nothing about docking equipment or thermal protection, American engineers repeatedly have expressed to me unjustified disdain for the space station technology developed by the Russians for Mir. The result: both countries often don’t take advantage of the other’s skills.

Assuming it gets the necessary funds, Boeing anticipates flight tests of its CST-100 reusable manned capsule in 2016.

More news from commercial space: Assuming it gets the necessary funds, Boeing anticipates flight tests of its CST-100 reusable manned capsule by 2016.

This story is part of the on-going lobbying effort to convince the Luddites in Congress to subsidize the new commercial space companies. To get some context, even if Congress gives NASA all of the money it has requested for this program, the annual cost will still be less than a third of the NASA-built Space Launch System, and will get us four different ways to get humans and cargo into orbit, and do it in far less time.

Boeing vs Boeing.

Boeing vs Boeing.

The story describes how Boeing is considering upgrading the X-37B to become a manned ferry to ISS, thus putting it in direct competition with the company’s other manned capsule, the CST-100.

At the American Institute of Aeronautics and Astronautics’s Space 2011 conference in November, Boeing’s Arthur Grantz revealed that the company is studying a new derivative of the Boeing/USAF X-37B. The new X-37C would be 65-80% larger than the current B version. Launched by an Atlas V rocket, X-37C could carry pressurized or unpressurized cargo or 5-6 astronauts. Grantz is chief engineer in charge of X-37 at the Boeing Space and Intelligence Systems Experimental Systems Group .

Hat tip to Clark Lindsey.

Southwest orders 208 Boeing 737s valued at $19 billion

Some good news: Southwest Airlines has ordered 208 of Boeing’s 737, a deal valued at $19 billion. Plus this:

Last month, Boeing said Indonesia’s Lion Air committed to pay $21.7 billion for 230 Boeing 737s. Lion Air also has options for 150 more planes, valued at $14 billion, bringing the deal’s total potential value to $35 billion. But the Lion Air deal is not a certainty; it still has to complete the order. Also in November, Emirates Airlines ordered $18 billion worth of 777s.

Maybe Boeing should pump some of those profits into building the CST-100 manned space capsule and thus win more profits in the space tourism industry.

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