Boeing [NYSE: BA] officials announced today the
company is realigning its launch and satellite businesses to better serve
the company’s primary customers, ensure program execution and reduce
infrastructure costs.
"The commercial space market has eroded to a point where it is no longer a
driving factor in either our satellite or launch services business," said
Jim Albaugh, president and CEO, Boeing Integrated Defense Systems. "The
steps we are taking today are in keeping with our customer-facing business
strategy."
Boeing Satellite Systems will be consolidated into Space and Intelligence
Systems. This will enable Boeing to weather the downturn in the commercial
satellite market. Dave Ryan, vice president of Boeing Satellite Systems,
will continue to lead the satellite manufacturing unit and now reports to
Roger Roberts, senior vice president, Space and Intelligence Systems.
Expendable Launch Systems, which produces and operates the Delta family of
launch vehicles, has become primarily a government supplier with the Air
Force as a major customer. As such the launch systems business will be
aligned with Air Force Systems. Will Trafton, vice president and general
manager of Expendable Launch Systems, will continue to lead the launch
business and now reports to George Muellner, senior vice president, Air
Force Systems.
Rocketdyne Power and Propulsion, the builders of the Space Shuttle Main
Engine and power generation systems onboard the International Space Station
will become part of NASA Systems. Byron Wood, vice president and general
manager of Rocketdyne, will continue to lead the business and now reports to
Mike Mott, vice president and general manager, NASA Systems. This will
enable Boeing to better support its NASA customer on human space flight
operations, exploration, and the emerging nuclear propulsion business.
These changes supplement the creation of the Integrated Defense Systems
Office of the President and the appointment of Boeing executive vice
president Dave Swain, former Boeing Chief Technology Officer, to the unit’s
Chief Operating Officer. Prior to becoming a member of the Office of the
Chairman and Chief Technology Officer, Swain held various leadership
positions within Boeing Phantom Works, and the company’s military aircraft,
missiles and transport businesses.
"The performance of our defense and intelligence businesses has been
exceptional during its first year," Albaugh said. "We have grown the
business and executed on our customers’ programs. In the commercial space
segment, we’ve seen the market dip to historic lows and do not expect a near
term recovery. In addition, we have had performance problems in this area.
"In his new role, Dave Swain will focus on operational excellence," Albaugh
said. "He brings a wealth of experience and technical knowledge. As we
continue to partner with our customer to transform the way in which they
operate, Dave’s experiences in Phantom Works and our military businesses
will be an enormous asset to Integrated Defense Systems."
The realignment is expected to have minimal impact on employment. To ensure
consistency and transparency into the performance of Integrated Defense
Systems, the company will continue to report financials along its four
established reporting segments.
A unit of The Boeing Company, Boeing Integrated Defense Systems is one of
the world’s largest space and defense businesses. Headquartered in St.
Louis, Boeing Integrated Defense Systems is a $25 billion business. It
provides systems solutions to its global military, government and commercial
customers. It is a leading provider of intelligence surveillance and
reconnaissance; the world’s largest military aircraft manufacturer; the
world’s largest satellite manufacturer and a leading provider of space-base
communications; the primary systems integrator for U.S. missile defense;
NASA’s largest contractor; and a global leader in launch services.
