Aerospace company Boeing (NYSE:
) and Space Exploration Technologies are expecting a major windfall
Friday as it is predicted that they will split the bulk of $1
billion in federal awards.
According to the
Wall Street Journal
, the money has been made available to encourage development of
next-generation manned spacecraft.
It has been a busy and lucrative couple of days for Boeing. On
Thursday, the company announced through a
that it has finalized a deal with Israeli national carrier EL AL
for two additional Next-Generation 737-900ERs (Extended Range)
adding to EL AL's previous order in March 2011, bringing the total
number to six 737-900ERs on order.
"The Next-Generation 737 family already forms the backbone of EL
AL's short and medium-haul operations, which will be greatly
enhanced in terms of route flexibility, improved efficiency and
passenger comfort with the introduction of the 737-900ER," said
Todd Nelp, vice-president of European Sales for Boeing Commercial
Airplanes. "As one of the world's leading airlines, we are honored
by the fact that EL AL continues to operate an all-Boeing
In addition, Boeing is expected to spotlight several unmanned
systems that meet a variety of customer needs during the
Association for Unmanned Vehicle Systems International (AUVSI)
Unmanned Systems North America 2012 conference and exhibition,
according to a
"Boeing continues to draw on capabilities from across the
company to offer a diverse and growing set of unmanned solutions
for both military and commercial customers," said Debbie Rub,
Boeing vice president and general manager of Missiles and Unmanned
Airborne Systems. "We are committed to helping our customers
overcome their current and future challenges through continued
However, this latest coup will see Boeing split between $800
million and $1 billion with Space Exploration Technologies through
mid-2014. Satellite component manufacturer Sierra Nevada is
expected to receive a smaller award.
With NASA's space shuttle fleet retired a year ago, President
Obama wants to promote private spacecraft in order to avoid relying
too heavily on Russian rockets and capsules. This round of funding
is a big step towards that goal.
On Friday, Boeing traded flat at about $72.
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