Both the Senate and House Armed Services committees have slashed the president's fiscal 2008 proposed budget request of $549 million for the airborne laser program, or ABL, that will be used to thwart enemy missiles in the sky. In July, the House Appropriations committee agreed to a smaller cut of $51 million from the program.

Boeing and its teammates Northrop Grumman Corp. and Lockheed Martin Corp. are awaiting the Senate Appropriations committee to finalize its budget by the end of the month.

Greg Hyslop, a Boeing vice president, told reporters in a conference call that the level of cuts by both committees would delay the company's ability to complete the program by at least two years.

Hyslop said in order to stay on track it will need the full funding of the president's budget request.

The airborne laser program, which is being installed on a modified Boeing 747 aircraft, is designed to detect, track and engage a ballistic missile from a rogue state in the sky.

On Friday, the Missile Defense Agency said the Boeing-led team sailed through initial testing of the anti-missile aircraft on Aug. 23 at Edwards Air Force Base in California. The aircraft completed 48 flight test missions and fired its laser more than 200 times, according to the agency.

The next phase of testing will begin in late 2008 using Northrop's high-energy laser. The companies have already begun to install the upgraded laser at Edwards Air Force Base, according to Boeing.

Shares of Boeing fell 79 cents to $95.91 in late afternoon trading, while shares of Lockheed fell 15 cents to $98.99. Shares of Northrop fell 40 cents to $78.44. Copyright 2007 Associated Press. All rights reserved. This material may not be

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