Lockheed Martin already has several established international space programs, but "we'd like to do a few more," says Albert Smith, Lockheed Martin's executive VP, Space Systems. He was reluctant to amplify exactly what the company has in mind, although deals in both the launcher and satellite arena are deemed possible.

There is excess capacity in certain areas of the global space business and transatlantic deals would be a way to reduce that, Smith said. "Rationalization of capacity is needed," he added.

The Lockheed Martin interest is spurred, in part, by a less restrictive attitude to transatlantic dealings within the U.S. Defense Department. But the U.S. Congress remains concerned about technology transfer. Smith conceded that "there clearly are some export control issues" that would need to be addressed.

Among Lockheed Martin's existing international arrangements are the use of the Russian RD-180 engine for its Atlas III and Atlas V launchers, and the International Launch Services joint venture with Krunichev. That operating business has had a highly successful year so far, generating $1 billion in launch orders, compared to a problem-plagued 1999 during which orders were less than $500 million. The orders cover both Atlas and Proton launches. This year's total includes 13 firm orders and 17 options, said Thomas Marsh, deputy executive VP for Space Systems.

Performance has also improved in the Space Imaging joint venture with Raytheon and other investors. The company, which offers 1 meter resolution black and white imagery, will log over $200 million in revenue this year, compared to only about $40 million last year, Smith said. Furthermore, it is ready to deliver a turn-key operation to a potential customer at a cost of about $200 million.

There are several areas where Lockheed Martin is hoping to be able to improve its space business performance. One is in the U.S. Evolved Expendable Launch Vehicle program, in which Lockheed Martin's Atlas V is competing for launches with Boeing's Delta IV family of launchers. Boeing won the vast majority of launches during the first round of contracts. "We didn't do too well," acknowledged Smith. However, the launch in May of an Atlas III with the RD-180 reduced the risk for the Atlas V by 80%, he insisted, should help the company win more orders when the next set of EELV contracts are awarded.

By Robert Wall