Musk, Bezos Lure Key Staff From Pentagon’s Top Rocket Launcher

For over a decade, United Launch Alliance had an absolute monopoly. If the Pentagon wanted to send a spy satellite to space, the Boeing Co. and Lockheed Martin Corp. venture was its only choice.

Now, Elon Musk’s well-funded SpaceX has eaten into its business, capturing 40% of Pentagon contracts over the last few years. Jeff Bezos’ Blue Origin threatens to take more of the pie once it certifies its New Glenn rocket.

Over at ULA, budgets are running over and revenue is down as customer delays push back launches, according to a person familiar with the matter. Boeing ...