Boeing-Lockheed Martin JV gets Pentagon nod: report

But Pentagon wants anti-trust measures built
into the United Launch Alliance

BY A CORRESPONDENT
8th January 2006

A proposed Boeing-Lockheed Martin joint venture to merge their rocket ventures for government business has received a tentative Pentagon approval, Reuters reported.

Quoting Loren Thompson of the Lexington Institute, which is linked to the Pentagon and corporates, Reuters said that Pentagon, however, has sought strict anti-trust protections to guard itself from trouble. Thompson has been quoted as saying that Pentagon's acquisitions chief has cleared the proposal.

Lockheed and Boeing are traditionally fierce rivals to secure rocket business which comes from Pentagon. Boeing has faced fire in the past over the alleged theft of rocket documents from Lockheed Martin, which reportedly led to Boeing getting undue benefits in defence contracts.

In May 2005, Lockheed and Boeing - both of which have struggling rocket businesses - made a joint proposal to Pentagon to merge these ventures in the areas of production, engineering, test and launch operations for US government launches of Boeing Delta and Lockheed Atlas rockets. This was to be a 50-50 venture, known as United Launch Alliance.

Norththrop Grumman may prove to be spanner in the works, which has high stakes in the rocket-launch game. Though Northrop is not directly involved in rockets, it has interests in the associated satellite business, and fears that a monopoly in the rocket launch arena will hamper its own interests. Pentagon has reportedly asked that Northrop's concerns too must be addressed.