CHICAGO — The explosion of the space shuttle Columbia will present yet another challenge for Boeing Co., the largest NASA contractor, as it struggles through an unprecedented downturn in commercial aviation that has sharply hurt its profitability.





Chicago-based Boeing builds space shuttles after acquiring the space business of Rockwell International in 1996. It also maintains the orbiter as part of a 50/50 joint venture with fellow defense contractor Lockheed Martin Corp. called United Space Alliance, based in Houston.

Boeing also builds, tests and maintains the shuttle's main reusable liquid-fueled rocket engines.

With the cause of the explosion unknown, several analysts said it is too early too determine the precise effect the tragedy will have on Boeing and Lockheed -- the world's two largest defense and space contractors -- and other firms.

If the space shuttle fleet is scrapped in favor of a next-generation orbiter, Boeing and Lockheed could ultimately benefit, even if they lose payments from maintenance and upgrade operations in the short-term, analysts said.

If other smaller contractors with cutting-edge technology were chosen, however, they could lose out completely.

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