Kelly Space & Technology was founded in 1993 to develop new low cost methods of placing payloads into low earth orbit.  Their proposed Astroliner launch vehicle employs a novel tow launch system.   The fully fueled Astroliner, which weights more than 700,000 lb (about the same as an L-1011 or DC-10), is towed off the runway using a combination of onboard air breathing propulsion and the excess thrust of a 747 tow plane.  Once airborne, the Astroliner is towed up to 20,000 ft where its three NK-33 engines are ignited to accelerate the vehicle to approximately mach 6.  At propellant depletion, the main engines are shut down and the Astroliner coasts to an altitude of 400,000 ft - an altitude associated with the edge of the earth's atmosphere.  The nose of the vehicle opens similar to that of a C-5 military transport aircraft and the second stage and payload are released.  The Astroliner performs a plume avoidance maneuver and the second stage ignites to place the payload in the desired orbit.

The Astroliner is sized to compete against Boeing's Delta II and Kistler's K-1 launch vehicles.  Kelly Space & Technology has a contract valued at $89 million for ten launches to place twenty Iridium replacement satellites on orbit.