Boeing Joins International Satellite Deal

The Boeing Co. announced Monday a major satellite venture that will broaden its space business.

Boeing is joining forces with Russian and Norwegian companies to form a U.S.-based commercial satellite-launching firm.

Called Sea Launch, it will establish a U.S. home port to launch satellites from a sea-based pad operating in international waters in the Pacific Ocean.

The concern hopes to make its initial launch within two years, said Ronald Olson, vice president, Boeing Commercial Space Co.

Boeing, also prime contractor to the National Aeronautics and Space Administration for development of the international space station, will have overall responsibility for development of the Sea Launch system and operation of its business. Boeing will not build or operate the satellites.

While only a fraction of Boeing’s total business, satellites represent a potential growth area at a time when jet orders are stagnant.

In fact, in a separate announcement Monday, Boeing said the Middle East airline Gulf Air had canceled a $1.4 billion order for six Boeing 777s.

The airline, owned by Bahrain, Oman, Qatar and Abu Dhabi, will instead purchase six A340 jets from rival Airbus Industrie.

Such competition between Airbus and Boeing has become intense as jet demand has slipped.

But demand is growing for satellites for a variety of uses, particularly those related to providing global communications accessibility. Many aging satellites also need to be replaced.

Norway’s largest shipbuilder, Kvaerner Group, will be responsible for the venture’s sea-based launch platform and the assembly, command and control ship.

Kvaerner is negotiating the purchase of an existing, self-propelled oil-drilling platform that the venture will refurbish as a seagoing launch pad.

The launch pad will be movable so launches can be made from whatever spot in the Pacific Ocean is best-suited for a desired orbit.

RSC-Energia, one of Russia’s largest aerospace companies, and NPO-Yuzhnoye, Ukraine’s leading rocket builder, will manufacture key components of the rocket that will send the satellite into orbit.

Boeing already is meeting with potential satellite-launching customers and refining development plans for home-port facilities.