Arianespace, under severe competitive price pressure from SpaceX, begs for more subsidies from ESA.
The competition heats up? Arianespace, under severe competitive price pressure from SpaceX, begs for more subsidies from ESA.
In comments responding to a Feb. 11 audit of the French Accounting Court, Cour des Comptes, Israel said that since 2005 Arianespace has improved its competitiveness to the extent that some €200 million ($273 million) in annual subsidies from the 20-nation European Space Agency (ESA) have been halved. In addition, the reliability of the Ariane 5, which has seen 58 consecutive successes since 2002, has allowed the company to increase launch prices. The company also has reduced costs with a recent bulk buy of 18 Ariane 5 rockets that saved Arianespace 5%.
Nevertheless, Israel said the arrival of the medium-lift Falcon 9 as a competitor at the low end of the commercial communications satellite market, with prices substantially lower than what Arianespace charges for Ariane 5, means the company may be forced to ask ESA governments to increase price supports beyond the current €100 million per year. [emphasis mine]
In other words, this government-funded boondoggle doesn’t know how to compete effectively on the open market, and wants an additional government bailout to keep its head above water.
Note also the text in bold. Several commenters on this website have repeatedly insisted that SpaceX’s Falcon 9 was not the bargain claimed, despite numerous examples in the past three years of their competition saying they were that inexpensive. This statement by Arianespace’s CEO reaffirms the fact that SpaceX is cheaper, and is forcing major changes to the launch industry.
In related news, French government auditors have found much wrong with Arianespace’s current long term commercial strategy.
On Christmas Eve 1968 three Americans became the first humans to visit another world. What they did to celebrate was unexpected and profound, and will be remembered throughout all human history. Genesis: the Story of Apollo 8, Robert Zimmerman's classic history of humanity's first journey to another world, tells that story, and it is now available as both an ebook and an audiobook, both with a foreword by Valerie Anders and a new introduction by Robert Zimmerman.
The ebook is available everywhere for $5.99 (before discount) at amazon, or direct from my ebook publisher, ebookit. If you buy it from ebookit you don't support the big tech companies and the author gets a bigger cut much sooner.
The audiobook is also available at all these vendors, and is also free with a 30-day trial membership to Audible.
"Not simply about one mission, [Genesis] is also the history of America's quest for the moon... Zimmerman has done a masterful job of tying disparate events together into a solid account of one of America's greatest human triumphs."--San Antonio Express-News
The competition heats up? Arianespace, under severe competitive price pressure from SpaceX, begs for more subsidies from ESA.
In comments responding to a Feb. 11 audit of the French Accounting Court, Cour des Comptes, Israel said that since 2005 Arianespace has improved its competitiveness to the extent that some €200 million ($273 million) in annual subsidies from the 20-nation European Space Agency (ESA) have been halved. In addition, the reliability of the Ariane 5, which has seen 58 consecutive successes since 2002, has allowed the company to increase launch prices. The company also has reduced costs with a recent bulk buy of 18 Ariane 5 rockets that saved Arianespace 5%.
Nevertheless, Israel said the arrival of the medium-lift Falcon 9 as a competitor at the low end of the commercial communications satellite market, with prices substantially lower than what Arianespace charges for Ariane 5, means the company may be forced to ask ESA governments to increase price supports beyond the current €100 million per year. [emphasis mine]
In other words, this government-funded boondoggle doesn’t know how to compete effectively on the open market, and wants an additional government bailout to keep its head above water.
Note also the text in bold. Several commenters on this website have repeatedly insisted that SpaceX’s Falcon 9 was not the bargain claimed, despite numerous examples in the past three years of their competition saying they were that inexpensive. This statement by Arianespace’s CEO reaffirms the fact that SpaceX is cheaper, and is forcing major changes to the launch industry.
In related news, French government auditors have found much wrong with Arianespace’s current long term commercial strategy.
On Christmas Eve 1968 three Americans became the first humans to visit another world. What they did to celebrate was unexpected and profound, and will be remembered throughout all human history. Genesis: the Story of Apollo 8, Robert Zimmerman's classic history of humanity's first journey to another world, tells that story, and it is now available as both an ebook and an audiobook, both with a foreword by Valerie Anders and a new introduction by Robert Zimmerman.
The ebook is available everywhere for $5.99 (before discount) at amazon, or direct from my ebook publisher, ebookit. If you buy it from ebookit you don't support the big tech companies and the author gets a bigger cut much sooner.
The audiobook is also available at all these vendors, and is also free with a 30-day trial membership to Audible.
"Not simply about one mission, [Genesis] is also the history of America's quest for the moon... Zimmerman has done a masterful job of tying disparate events together into a solid account of one of America's greatest human triumphs."--San Antonio Express-News
>..In other words, this government-funded boondoggle doesn’t know how to compete effectively on the open market,
> and wants an additional government bailout to keep its head above water.
So Arianne/ESA can use the Israelis threat to use the NASA/DoD funded launcher boondoggle (SpaceX) rather then one of the Arianne boosters, to pressure the EU to competitively support their pork LV program Arianne as much as the Americans do. Reminds my of farm price supports.
if you’ll read your clipping:
…the reliability of the Arianne 5,=== has allowed the company to increase launch prices….
In other word Arianne got greedy, lowering their costs, while jacking up their prices, and is getting some pushback from a customer; and using the pushback as a excuse for more gov funds.
No doubt the SpaceX gov funded boondoggle is VERY helpful to them in this, since they can argue that since Isreals saying they might go to SpaceX, whose far more gov funded by the US then Ariane is by the EU.