Boeing said it is restructuring key defence and space development programmes into a new company, to ensure the ongoing programmes are on schedule.

Restructuring is part of the company’s effort to enhance its performance on pre-production development activities, and be on-track to serve customers with the right capabilities, while reducing costs.

Called BDS Development, the new company will manage Boeing’s projects, including US Air Force KC-46 aerial refuelling tanker, the Air Force’s presidential aircraft, CST-100 spacecraft for Nasa’s Commercial Crew programme, Nasa Space Launch System rocket, Boeing 502 small satellite and 777X commercial aircraft.

Boeing defence, space and security president Chris Chadwick said: "This BDS Development organisation is the next step in breaking the cost curve on our programmes.

"In 2014, Boeing secured a contract from Nasa to fly astronauts on missions to the International Space Station onboard its CST-100."

"We expect our customers to see step-function improvements in affordability and schedule performance as we more effectively apply engineering expertise, development programme best practices, and programme management and integration from across Boeing to our most important development activities."

The company said the BDS Development plan is built on the airplane development organisation in Boeing Commercial Airplanes.
BDS Development will operate under the supervision of BDS Global Services & Support former president Jim O’Neill.

In 2014, Boeing secured a contract from Nasa to fly astronauts on missions to the International Space Station onboard its CST-100.

The company plans to conduct its first crewed test flight of the CST-100 in July 2017 with a Nasa astronaut and a Boeing test pilot onboard.

In July 2014, Nasa awarded a $2.8bn contract to Boeing to develop the core stage of the Space Launch System rocket.