A multibillion-dollar annual market for space tourism and launch services could emerge within the next five years, projects suborbital spaceflight hopeful XCOR Aerospace, which aims to begin flight tests of its first Lynx reusable launch vehicle by year-end.

Operational satellite networks that routinely monitor Earth's climate in the same way meteorological satellites watch the weather today will be extremely useful as the links between human activity and long-term environmental conditions become better understood, and perhaps more dangerous. It is an opportunity the aerospace industry cannot afford to pass up, given its unique ability to address climate-change issues.

Despite its programmatic progress and status as an acquisition reform program for the U.S. Air Force, GPS III—as with any other Pentagon project—is under the microscope and could be subject to funding cuts. The budget environment at the Pentagon gives new meaning to the term “capture team,” which is used to describe the group assigned by a company to win a program. Many contractors say they feel they are in a perpetual “capture team” mode, constantly fighting not only to win programs, but to keep them once they have won the contract.

The uncontrolled reentry of Russia's stranded Phobos-Grunt spacecraft presented a moving target to satellite trackers just days before pieces of the botched Mars mission were expected to fall to Earth.

Engineers developing the heavy-lift SLS are polling the worldwide launch industry in search of an upper stage.

The past year has seen a lot of turbulence in the stock market, but there have been a few bright spots for investors in aerospace and defense companies. Shares in suppliers of aerospace components fared particularly well in 2011 as Airbus and Boeing ramped up output, and soaring order numbers added to the airframers' already bulging backlogs. Notable performers among suppliers include Hexcel (up 34%), TransDigm Group (33%), Triumph Group (31%), Sifco Industries (23%), Rolls-Royce (20%), Precision Castparts (18%), Safran (12%) and Moog (10%).

ESA would use existing facilities and skills to build service-module structure and systems for the U.S. spacecraft.

NASA's twin Gravity Recovery And Interior Laboratory (Grail) spacecraft straddled the New Year as they eased into orbit around the Moon, where they will provide the most detailed gravity maps available and important clues to the origins of Earth's big satellite. Before the mission is over, the two spacecraft will also give thousands of middle-school students some hands-on experience in space research. After spending 3.5 months on a low-energy trajectory that started with a tandem launch Sept. 10, 2011, the first of the Grail orbiters braked into lunar orbit at 5 p.m.