European Commission Approves Joint Venture Between Boeing and Lockheed Martin

The European Commission has given its approval to a proposed joint venture between Boeing and Lockheed Martin, which would provide launch services for the U.S. government. The partnership, known as United Launch Alliance (ULA), aims to reduce costs and save the government money on launch services. The joint venture will be responsible for managing, engineering, producing, testing, and launching Boeing's Delta and Lockheed Martin's Atlas rocket families for U.S. government customers.

Key Takeaways:

• The joint venture, United Launch Alliance (ULA), will provide launch services exclusively for the U.S. government launch market.
• The partnership aims to reduce costs and save the government money on launch services.
• The joint venture will dismiss lawsuits filed by Boeing and Lockheed Martin related to sensitive data obtained by Boeing employees.
• The Air Force previously shifted $1 billion in launch business from Boeing to Lockheed Martin in 2003 and temporarily suspended several of Boeing's business units from doing business with the government.
• The European Commission did not see the potential for the joint venture to reduce competition in the commercial launch market.
• The two companies announced their joint venture plans in May 2005, as a way to reduce costs and save the government money on launch services, with Boeing and Lockheed Martin still expecting permission to move forward with ULA by the end of the year.

Statistics:

• $1 billion: The amount of launch business shifted from Boeing to Lockheed Martin in 2003.
• 1998: The year Boeing won the lion's share of the launches for the next generation launch vehicle.
• 2003: The year the Air Force shifted $1 billion in launch business from Boeing to Lockheed Martin and temporarily suspended several of Boeing's business units from doing business with the government.
• 2005: The year the two companies announced their joint venture plans.
• 2014: The proposed completion and approval year of the United Launch Alliance (ULA).
• The ULA is expected to save the U.S. government money on launch services, as well as reduce costs for the two companies.

Sources:

• Defense Daily, May 3, 2005.
• Defense Daily, June 10, 2003.
• Defense Daily, June 11, 2003.
• Defense Daily, July 25, 2003.