Lockheed Martin Commercial Launch Services is another U.S.-based player, along with Boeing, that would like to return to the commercial launch services market.
David Markham, president of the unit, talks to Via Satellite Associate Editor Mark Holmes about recent developments in the market and the potential opportunities for Lockheed Martin.

Via Satellite: What impact will recent launch failures have on the space industry?

Markham: We have seen near-term shortcomings in the ability to accommodate specific launch requests for specific dates, but customers with established long-term plans are finding the rides they need. Broadly, the industry may see higher insurance rates across all launch providers. It is disappointing that the performing systems will have to bear this burden.

Via Satellite: How will the issues impact Lockheed Martin’s business in this area?

Markham: There has been some additional interest in securing Atlas 5 commercial launch slots.

Via Satellite: How would you assess the launch services market over the last year?

Markham: We are seeing stabilization in demand versus capacity, with industry forecasts identifying a consistent average of 19 to 22 spacecraft launches per year.

Via Satellite: What do you see as your competitive advantages over other launch services providers?

Markham: We bring to the market proven and consistent reliability, and product sustainment of a stable launch rate. Additionally, we provide flexible configurations for payloads from 3.5 to 7 metric tons with a 4- or 5-meter fairing.

Via Satellite: How many contracts are you looking to win in 2007 and 2008?

Markham: Our commercial market capacity is one or two customers per year looking for Atlas 5 launch services.

Via Satellite: Do you think the company will see strong financial growth over the next couple of years?

Markham: We have gone through recent changes to achieve financial strength with the creation of [United Launch Alliance] and divestiture of [International Launch Services]. We are recommitting to financial discipline in a flat but stable market. With the current competition, we don’t foresee rising financials but rather see stability.

Via Satellite: Do you see long-term deals between operators and launch services providers as a trend?

Markham: We believe that the unbridled optimism that fuelled the initial constellations has been tempered with a dose of cold economic reality, and the current planning for second-generation systems will likely be based on more sound principles. We currently see operators looking for long term relationships with launch vehicle providers that focus on flexibility and launch certainty versus pure price.

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