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.

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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.

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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.

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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.

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Boeing to cut 30 percent of its management ranks.

Boeing to cut 30 percent of its management ranks.

This could be good news for the company. If they do this right, they will reduce their costs without hurting their ability to produce. That they made this announcement today, the day after the election, and that the cuts mostly involve their defense work also suggests it is linked to sequestration, despite the company’s denial.

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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.

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