NASA Award Caps Great Week for Boeing
Aerospace company Boeing (NYSE: BA) 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 press release 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 fleet."
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 press release.
"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 innovation."
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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