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SEA LAUNCH AND BOEING STRENGTHEN TIES WITH BACKUP DEAL

Sea Launch and Boeing Expendable Launch Services have signed memorandum of understanding to offer backup services to customers using launchers of each company. Agreement will allow Boeing spinoffs to remain independent and “still compete” in marketplace, while providing “essential backup services” for Sea Launch Zenith 3SL and Delta 4 rockets, Boeing official said. “If we can accommodate any Sea Launch programs with a Delta vehicle, or vice versa, that’s the gist of it,” Boeing spokesman said. Boeing Delta 4 Vp Dave Schweikle said it also was matter of branding in marketplace. He said most people in satellite industry already think of Boeing and Sea Launch as “same company” so providing backup services wouldn’t be problem in branding efforts. Companies also said they would move toward “joint marketing effort.” Boeing owns 40% of Sea Launch, but Boeing spokesman said companies had separate operations: “We try to maintain the distinction in that respect… those are completely different operations.” Steps also are meant as way for companies to keep pace with rivals International Launch Services and Arianespace, which offer backup services to customers. Backup arrangements allow customers to switch launch vehicles if rocket designed to carry its payload is unable to fly.

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Arianespace shrugged off news of Boeing-Sea Launch deal, emphasizing its own rockets and similar deals. “Arianespace’s commercial policy continues to be the offer of Ariane 5 and its planned variants,” spokesman said. “This new-generation launcher meets the market’s needs, both in performance and capacity.” “We believe we're the only ones that can do assured launches credibly,” spokeswoman for International Launch Services said: “You have to have sufficient quantities of vehicles, quick cycle times, and they have to be priced comparably.”

Delta 4 and Zenith 3SL have ability to back each other up, Sea Launch official said. Launch vehicles must be compatible to back each other up, industry officials said. Details of arrangement, including how costs will be split, still must be wrapped up before arrangement can be finalized, Sea Launch official said, and companies will have to invest money to develop systems that will enable satellites to be switched from one launcher to another. He said that probably would result in “closer arrangement” in future.

Deal must be approved by Sea Launch board, Boeing spokesman told us, but deal appeared to be all but finalized.