8 Reserve Dates for McDonnell Delta II Rocket
In a boost for its hope of becoming the nation’s pre-eminent private rocket maker, McDonnell Douglas Corp. said Tuesday that its Huntington Beach-based astronautics unit has received down payments from eight commercial customers to reserve future launches of its modified Delta II rocket.
While far from being firm orders for the medium-range, three-stage vehicles, the launch date reservations are an important early step in negotiations that could lead to $350 million or more in commercial business. The eight customers reserved a total of nine dates at a reported cost of $50,000 per reservation.
In January, McDonnell Douglas Astronautics Co. won a critical Air Force contract to provide seven Delta II rockets, valued at $316.5 million, through 1990. The contract carried an option, worth up to $430 million more, for as many as 13 additional Deltas through 1992.
In securing the Air Force pact--which will help underwrite development costs for the commercial rockets as well--McDonnell Douglas defeated rival rocket builders General Dynamics, maker of the Atlas rocket, and Martin Marietta, which builds the Titan.
While the military version of McDonnell Douglas’ Delta runs about $35 million, industry analysts and company officials have said that the commercial versions could average about $40 million.
The higher cost would represent both a higher profit margin and more expensive alterations for private customers.
The nine launch reservations were received from eight organizations including Communications Satellite Corp., Pacific Satellite Inc., Contel ASC, Hughes Communications Satellite Services and the government of India. Three organizations declined to be identified, McDonnell Douglas said, and Communications Satellite Corp. booked two launch dates.
The Delta II launches for commercial customers will begin in late 1988 or early 1989, and a McDonnell Douglas spokesman said the company expects to be able to handle as many as a dozen commercial launches a year by 1992.
