FYI,

It looks like the B@st@rds at USA have a little brother. "Can you
say collusion? I knew you could." :) Boeing and LockMart claim they
can't turn a profit building rockets. I'm sure there are a few space
entrepreneurs out there that would like to take a shot at the billions
of dollar government contracts that Boeing and LockMart can't manage
to live on.

"Boeing, Lockheed Join to Build Rockets"
Associated Press
http://biz.yahoo.com/ap/050502/boeing_lockheed.html?.v=11

: Two of the nation's largest defense contractors, The Boeing Co. and
: Lockheed Martin Corp., said late Monday they have agreed to create
: a joint venture to produce rockets for the U.S. military.

: The joint venture, to be named United Launch Alliance, would be the
: sole provider of rocket launches to be used by the U.S. Air Force,
: NASA and other government agencies.

: A Boeing spokesman said the two companies can put their past
: disputes behind them.

: "Well, we think we can come together as a team," said spokesman Dan
: Beck. "These are consummate professionals in the rocket launch
: business. We recognize that if we are going to meet the needs of
: government customers in most cost-effective, reliable manner this
: is a step that needed to be taken."

: Lockheed chairman, president and chief executive officer Robert J.
: Stevens agreed.

: The deal would need approval of government regulatory agencies,
: including the Federal Trade Commission.

: In a joint news release, the two companies said United Launch
: Alliance would be based in Denver and structured as a 50-50
: venture. The new business would combine services currently provided
: separately by Boeing's integrated defense division and Lockheed's
: space systems company for launches of each company's respective
: rockets -- the Boeing Delta and Lockheed Atlas rockets.

: Assembly work would be done primarily at Boeing's manufacturing and
: assembly facility in Decatur, Ala., with support from launch
: facilities operated by the companies at Cape Canaveral Air Force
: Station in Florida and Vandenberg Air Force Base in California.

: The joint venture would have about 3,800 total employees at sites
: in Colorado, Alabama, Florida, California and Texas. Consolidation
: of the two organizations is expected to results in loss of an
: undetermined number of jobs, Boeing's Beck said.

: Completion of the transaction could come by the end of 2005, he
: said.

: The agreement follows extensive talks that were pushed by the Air
: Force amid a growing sense by both companies that as competitors,
: they would not be able to turn a profit on separate rocket-launch
: businesses.

: If approved by federal regulators, the companies are expected to
: request suspend pending civil litigation related to a previous
: competition for rocket launches under the EELV program.

: "We've obviously had a civil lawsuit pending over our launch
: vehicles," said Jeffrey MacLauchlan, Lockheed's vice president for
: financial strategies. "But actually we collaborate on a lot of
: projects."

: The companies don't expect regulatory challenges, even though the
: joint venture would be the exclusive provider of a multibillion
: dollar service.

Mark Reiff