Posted: Thu, Oct 23, 2003, 8:17 AM ET (1217 GMT)
Boeing has cancelled a payload processing contract it had with Spacehab subsidiary Astrotech, Spacehab announced Wednesday. The contact, which went through 2010, covered commercial payload processing services for Boeing's Delta 4. Boeing announced in July that it had withdrawn the Delta 4 from the commercial launch market for at least five years because of a lack of demand for commercial launches and strong competition from other companies. Boeing will pay Spacehab a $17.5 contract termination fee, although the loss of the contract will reduce Spacehab's backlog by $34.9 million. Spacehab said it will use the termination fee to service the mortgage on its payload processing facility near Cape Canaveral. Astrotech has a similar contract with Lockheed Martin, and provides payload processing services to Sea Launch and Orbital Sciences Corporation.

Related Links:

•  Spacehab press release
•  Reuters article