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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.