Tag Archives: Safran

European commission approves Airbus-Safran buy of Arianespace

The competition heats up: The bureaucrats in the European Union have given their approval to the purchase by Airbus-Safran Launchers of Arianespace, thereby clearing the way for the privatization of that ESA entity and the construction, under Airbus-Safran control, of Ariane 6.

Following an in-depth review, the European Commission has approved under the EU Merger Regulation, the acquisition of Arianespace by Airbus Safran Launchers (ASL), a joint venture between Airbus and Safran. This approval is subject to conditions. Commissioner Margrethe Vestager, in charge of competition policy, said: “A well-functioning satellite and launcher industry is important to guarantee that European companies and institutions can gain access to space at competitive terms. The commitments offered by ASL ensure that after its takeover of Arianespace, all players in the industry will continue to have incentives to innovate.”

The Commission had concerns that the transaction would give rise to flows of sensitive information between Airbus and Arianespace to the detriment of competing satellite manufacturers and launch service providers. The Commission’s approval is conditional on the implementation of the commitments offered by the companies to address these concerns.

I must say that, in reading this story, I understood far better why the United Kingdom voted to leave the European Union. Though this particular deal is certainly different and involves many important government issues, if every private business deal is subject to the numbing concerns of this commission, I myself would run screaming from them as fast as I could.

Airbus Safran joint rocket venture moving forward

The competition heats up: According to the head of Safran, their joint venture with Airbus to build Europe’s next rocket, Ariane 6, is on schedule to begin full operations by July 1.

He said in a press teleconference that the issues both with the French tax authorities and with the European Union about the merger are being resolved.

A streamlined Arianespace to build Ariane 6?

The competition heats up: The merged Airbus/Safran rocket division has surprised the European Space Agency with a proposed new design for Ariane 6.

The Airbus-Safran proposal, if carried to its logical end, would mean a single company building Ariane vehicles, with fewer subcontractors and much less government oversight. It would likely mean the end of the CNES launcher division as industry takes more control of Ariane design and operations.

In other words, the contractors who build the rockets for ESA want more power over that construction. They want less government oversight, and more ownership of the rocket they build.

Sounds like what’s happening in the U.S., doesn’t it? Giving ownership to the rocket builders means they not only have more flexibility and thus can be more efficient, it makes it easier for them to innovate in both construction and sales.

The competition heats up: European aerospace companies Airbus and Safran have signed an agreement to merge their rocket divisions.

The competition heats up: European aerospace companies Airbus and Safran have signed an agreement to merge their rocket divisions.

The companies said the joint-venture would combine Airbus Group’s launch systems with Safran’s propulsion systems, but hinted at broader integration of public and private activities in an effort to duplicate the success of planemaker Airbus. Europe’s Ariane 5 space launcher dominates the market for large commercial satellites but faces growing concerns over its future due to competition from Space Exploration Technologies (SpaceX), run by billionaire entrepreneur Elon Musk.

To respond to the threat, Airbus and Safran aim to lead a drive towards an integrated European launch firm drawing on the lessons of Airbus’s planemaking unit, which was spurred into turning itself from being a consortium into a single company by the merger of transatlantic rivals Boeing and McDonnell Douglas in 1997. [emphasis mine]

The article, like practically every other report about Europe’s space effort in the past two years, singles out the competitive threat being made to their market share by SpaceX. Increasingly, the price reductions being offered by Musk’s company combined with its repeated success in launching payloads into orbit is forcing Europe to cut its own costs and become more efficent, something they have not bothered to do in decades. As result access to space is about to get signigicantly cheaper.