ESA and Airbus Safran in budget dispute over Ariane 6
The competition heats up: The deal between ESA and Airbus Safran to build Europe’s next generation rocket, Ariane 6, to compete with SpaceX for the launch market is now threatened because Europe wants the company to pay more for development than the company expected.
[ESA launch director Gaele] Winters acknowledged that Airbus Safran Launchers has not agreed with ESA’s assessment that industry’s share of the development cost is around 400 million euros. “They told us they have not signed off on the 400 million [euros], and this is correct,” Winters said. “It is an assumption we made, which we will look at next during the full Program Implementation review scheduled for mid-2016. Industry is prepared to invest in the program, and one important condition is that we need to be sure they have a fair rate of return on their investment.”
Winters said ESA is sensitive to the fact that additional costs borne by industry will find their way into the Ariane 6 pricing structure, which would undermine the vehicle’s competitiveness on the international commercial market.
If Airbus Safran wants to own the rocket, they must be willing to pay for some of its development, as have SpaceX and the other new American commercial space companies. This is the price for having the right to make money from the rocket outside of its European government customers. It seems, however, that Airbus Safran is balking at that reality. They are used to having everything covered by ESA, and are now unhappy they might have to lay out some bucks themselves.
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The competition heats up: The deal between ESA and Airbus Safran to build Europe’s next generation rocket, Ariane 6, to compete with SpaceX for the launch market is now threatened because Europe wants the company to pay more for development than the company expected.
[ESA launch director Gaele] Winters acknowledged that Airbus Safran Launchers has not agreed with ESA’s assessment that industry’s share of the development cost is around 400 million euros. “They told us they have not signed off on the 400 million [euros], and this is correct,” Winters said. “It is an assumption we made, which we will look at next during the full Program Implementation review scheduled for mid-2016. Industry is prepared to invest in the program, and one important condition is that we need to be sure they have a fair rate of return on their investment.”
Winters said ESA is sensitive to the fact that additional costs borne by industry will find their way into the Ariane 6 pricing structure, which would undermine the vehicle’s competitiveness on the international commercial market.
If Airbus Safran wants to own the rocket, they must be willing to pay for some of its development, as have SpaceX and the other new American commercial space companies. This is the price for having the right to make money from the rocket outside of its European government customers. It seems, however, that Airbus Safran is balking at that reality. They are used to having everything covered by ESA, and are now unhappy they might have to lay out some bucks themselves.
Readers!
Every February I run a fund-raising drive during my birthday month. This year I celebrate my 72nd birthday, and hope and plan to continue writing and posting on Behind the Black for as long as I am able.
I hope my readers will support this effort. As I did in my November fund-raising drive, I am offering autographed copies of my books for large donations. Donate $250 and you can have a choice of the hardback of either Genesis: the Story of Apollo 8 or Conscious Choice: The origins of slavery in America and why it matters today and for our future in outer space. Donate $200 and you can get an autographed paperback copy of either.
Please consider supporting my work here at Behind the Black. My analysis of space, politics, and culture, taken from the perspective of an historian, is almost always on the money and ahead of the game. For example, in 2020 I correctly predicted that the COVID 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. Every one of those 2020 conclusions has turned out right.
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.
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