Tag Archives: launch industry

Federal law outlaws launches on foreign rockets

Killing competition: The American launch industry as well as the FAA regulators are in agreement that a 2005 law that limits American small satellite companies from using foreign launch companies should remain in place.

The CSLA, dating from 2005, is the U.S. government’s way of protecting the seemingly forever-nascent U.S. small-satellite launch industry from competing with government-controlled foreign launchers for U.S. business. It seeks to oblige non-U.S. rocket providers to sign a CSLA that, for all intents and purposes, sets U.S. commercial launch prices as the world minimum for government-owned non-U.S. launch providers.

The rationale is that these non-U.S. launchers, not bound by the constraints of profit and loss – but hungry for hard-currency export earnings – will undercut commercial U.S. companies’ launch prices and keep them from gaining market traction.

India’s launch rockets, for example, are designed and built by India’s space agency ISRO, and are backed not by private funds but by government money. The fear is that India could subsidize its rockets so that the price could always be kept below what any American company could charge.

The truth, however, is that competition and innovation, here in the U.S., has so successful undercut foreign prices that no amount of subsidies can hope to compete. Those foreign companies are now scrambling to actually redesign their rockets to lower their costs and thus their prices, rather than asking for more handouts from their governments. This law should be repealed.

One step closer to a robust competitive space industry

Not surprisingly, last night’s successful launch of Falcon 9 has produced a large number of news articles. Rather than list them all, go to spacetoday.net for the links.

However, I think Clark Lindsey, in describing Elon Musk’s reaction to the successful launch, captured the most important aspect of last night’s success:
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The actual cost to launch

In writing this short post on the efforts of Lockheed Martin and Orbital Sciences to launch rockets for the small satellite market, Clark Lindsey made this comment:

It costs around $50 million to launch a Orbital Sciences Minotaur 4, which can put 1,730 kg into LEO while the Lockheed’s Athena 2 will cost around $65 million to put 1,712 kg into LEO. SpaceX currently posts charges $54M – $59.5M for launching to LEO 10,450 kg (equatorial) and 8,560 kg (polar). If SpaceX is able to sustain these prices in routine operation, it will obviously result in some disturbance to the launch industry.

Let’s deconstruct these numbers again, this time listing them by the cost per kilogram:
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