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Link here. It appears that this transition not only includes replacing Ariane 5 with Ariane 6, but also the phase out of Russian Soyuz rockets by 2022. This loss of business is going to hurt Russia, as the government there desperately needs cash with the drop in oil prices.
The article also noted that ArianeGroup will charge two prices for Ariane 6, depending on configuration and payload, $85 million and $130 million per launch. These prices seem high, but because they likely cover the launch of two satellites, customers will be charged half these amounts, $40 million and $65 million, which is competitive in today’s market.
Will these prices be competitive in 2020s? I have my doubts. I estimate, based on news reports, that SpaceX is charging about $40 million today for a launch with a reused first stage, and $62 million for a launch with an entirely new rocket. Give them another five years of development and I expect those prices to drop significantly, especially as they shift to entirely reused first stages for almost every launch and begin to demonstrate a routine launch cadence of more than one launch per month.
This quote below explains how ArianeGroup really intends to stay alive in the launch market:
The price targets assume that European governments — the European Space Agency, the European Commission, Eumetsat and individual EU nations — agree to guarantee the equivalent of five Ariane 62 missions per year, plus at least two missions for the light-lift Vega rocket.
In other words, ArianeGroup really doesn’t wish to compete for business. It wants to use government coercion to force European space agencies and businesses to buy its product. They might get that, but the long term result will be a weak European presence in space, as everyone else finds cheaper and more efficient ways to do things.