A close look at Falcon 9’s reusable cost savings
Link here.
The analysis is interesting and thoughtful, though some of the negative comments quoted from a former NASA engineer only illustrate why NASA was unable to do this very well. Moreover, these comments from Arianespace’s chief suggest that Arianespace doesn’t understand basic economics.
Arianespace Chief Executive Stephane Israel, in an April 23 briefing at Europe’s Guiana Space Center here on the northeast coast of South America, said Europe’s launch sector can only guess at how much SpaceX will need to spend to refurbish its Falcon 9 first stages. Israel said European assessments of reusability have concluded that, to reap the full cost benefits, a partially reusable rocket would need to launch 35-40 times per year to maintain a sizable production facility while introducing reused hardware into the manifest.
…Israel’s argument, which he has made before, is that even if first stages can be recovered and refurbished in a cost-effective way, the launch rate needed for maximum cost savings – and hence price reductions to customers – is beyond Europe’s reach. The only nations today whose governments are launching sufficiently often to reach those rates are the United States and China, and even these government markets may be insufficient, in and of themselves, to close the business case.
The customer base is not static. If you lower the price, the customer base grows, a fact that Elon Musk understands and which has been driving his effort from day one.
Readers!
Please consider supporting my work here at Behind the Black. Your support allows me the freedom and ability to analyze objectively the ongoing renaissance in space, as well as the cultural changes -- for good or ill -- that are happening across America. Fourteen years ago I wrote that SLS and Orion were a bad ideas, a waste of money, would be years behind schedule, and better replaced by commercial private enterprise. Only now does it appear that Washington might finally recognize this reality.
In 2020 when the world panicked over COVID I wrote that the panic was unnecessary, that the virus was apparently simply a variation of the flu, that masks were not simply pointless but if worn incorrectly were a health threat, that the lockdowns were a disaster and did nothing to stop the spread of COVID. Only in the past year have some of our so-called experts in the health field have begun to recognize these facts.
Your help allows me to do this kind of intelligent analysis. I take no advertising or sponsors, so my reporting isn't influenced by donations by established space or drug companies. Instead, I rely entirely on donations and subscriptions from my readers, which gives me the freedom to write what I think, unencumbered by outside influences.
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Link here.
The analysis is interesting and thoughtful, though some of the negative comments quoted from a former NASA engineer only illustrate why NASA was unable to do this very well. Moreover, these comments from Arianespace’s chief suggest that Arianespace doesn’t understand basic economics.
Arianespace Chief Executive Stephane Israel, in an April 23 briefing at Europe’s Guiana Space Center here on the northeast coast of South America, said Europe’s launch sector can only guess at how much SpaceX will need to spend to refurbish its Falcon 9 first stages. Israel said European assessments of reusability have concluded that, to reap the full cost benefits, a partially reusable rocket would need to launch 35-40 times per year to maintain a sizable production facility while introducing reused hardware into the manifest.
…Israel’s argument, which he has made before, is that even if first stages can be recovered and refurbished in a cost-effective way, the launch rate needed for maximum cost savings – and hence price reductions to customers – is beyond Europe’s reach. The only nations today whose governments are launching sufficiently often to reach those rates are the United States and China, and even these government markets may be insufficient, in and of themselves, to close the business case.
The customer base is not static. If you lower the price, the customer base grows, a fact that Elon Musk understands and which has been driving his effort from day one.
Readers!
Please consider supporting my work here at Behind the Black. Your support allows me the freedom and ability to analyze objectively the ongoing renaissance in space, as well as the cultural changes -- for good or ill -- that are happening across America. Fourteen years ago I wrote that SLS and Orion were a bad ideas, a waste of money, would be years behind schedule, and better replaced by commercial private enterprise. Only now does it appear that Washington might finally recognize this reality.
In 2020 when the world panicked over COVID I wrote that the panic was unnecessary, that the virus was apparently simply a variation of the flu, that masks were not simply pointless but if worn incorrectly were a health threat, that the lockdowns were a disaster and did nothing to stop the spread of COVID. Only in the past year have some of our so-called experts in the health field have begun to recognize these facts.
Your help allows me to do this kind of intelligent analysis. I take no advertising or sponsors, so my reporting isn't influenced by donations by established space or drug companies. Instead, I rely entirely on donations and subscriptions from my readers, which gives me the freedom to write what I think, unencumbered by outside influences.
You can support me either by giving a one-time contribution or a regular subscription. There are four ways of doing so:
1. Zelle: This is the only internet method that charges no fees. All you have to do is use the Zelle link at your internet bank and give my name and email address (zimmerman at nasw dot org). What you donate is what I get.
2. Patreon: Go to my website there and pick one of five monthly subscription amounts, or by making a one-time donation.
3. A Paypal Donation or subscription:
4. Donate by check, payable to Robert Zimmerman and mailed to
Behind The Black
c/o Robert Zimmerman
P.O.Box 1262
Cortaro, AZ 85652
You can also support me by buying one of my books, as noted in the boxes interspersed throughout the webpage or shown in the menu above.
“The customer base is not static. If you lower the price, the customer base grows, a fact that Elon Musk understands and which has been driving his effort from day one.”
This cannot be admitted in much of US-oriented space journalism, because it means Senator Shelby will inevitably lose influence unless he can openly smash groups not beholden to him. Meanwhile, he can make much trouble for anyone advertising in a space journal that states this simple fact.
In Europe they have a Shelby in every member of the ESA. It *must* be government contracts that dominate the market, otherwise, those voting ESA a budget will lose, and they all know it, inside and outside ESA.