Tag: Ariane 6

Airbus Safran demands full ownership of Ariane 6

5:15 pm

The competition heats up: One of the heads of Airbus Safran that is offering to build Europe’s next rocket, Ariane 6, has said that they must have full control of the rocket and project or they won’t do it.

“We are now a few weeks from the submission of a bid, and of course at this stage everyone defends his camp,” Lahoud said. “It is said that industry needs to make a financial contribution. We have said it’s possible we will contribute, but on condition that [development] not be conducted under the former system.

“We want responsibility for the design, the production, the commercialization and operations to be in the hands of industry, and not in a sort of mixed-economy creation that borrows more from the United Nations than from what our competitors do. Under these circumstances, and only under these circumstances, will there be a business case that allows us to invest, and to defend before our boards of directors the fact that corporate cash needs to be spent.”

In other words, they will not build something that will be under the complex bureaucratic control of the many-headed European Space Agency. Under that framework, they don’t think they can compete, so why bother?

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ESA and Airbus Safran in budget dispute over Ariane 6

4:02 pm

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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Airbus-Safran demand total control of Arianespace

9:00 am

The heat of competition: The European joint-venture between Airbus and Safran is now demanding that be given total control of Arianespace and the development of the new Ariane 6 rocket.

From Airbus’ perspective, the production of rockets in Europe should be done the same way commercial Airbus aircraft are built. “The launcher business in Europe in the beginning of 2014 was one in which the vehicles were designed by government agencies, commercialized by a company called Arianespace, produced by an ensemble of companies, and then launched by Arianespace. This is not an optimal situation,” [Airbus strategy director Marwan] Lahoud said.

“The optimal solution is to industrialize the process, with one prime contractor that designs, builds, sells and operates the launchers, with a supply chain — much as we do with Airbus today.”

Essentially, this would be a shift in ownership of the rocket, moving from the government to the private company. We have seen the same process in the U.S., with the new commercial space products no longer controlled or designed by NASA. The result has been lower cost, faster development, and greater profits.

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Airbus attacked by French lawmaker for talking to SpaceX

8:56 am

The competition heats up: A French lawmaker lashed out at Airbus for daring to consider SpaceX as a possible launch option for a European communications satellite.

The senator, Alain Gournac, who is a veteran member of the French Parliamentary Space Group, said he had written French Economy and Industry Minister Emmanuel Macron to protest Airbus’ negotiations with Hawthorne, California-based Space Exploration Technologies Corp. for a late 2016 launch instead of contracting for a launch on a European Ariane 5 rocket. “The negotiations are all the more unacceptable given that, at the insistence of France, Europe has decided to adopt a policy of ‘European preference’ for its government launches,” Gournac said. “This is called playing against your team, and it smacks of a provocation. It’s an incredible situation that might lead customers to think we no longer have faith in Ariane 5 — and tomorrow, Ariane 6.”

Heh. SpaceX really is shaking up the launch industry, ain’t it?

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New joint venture to build Ariane 6

9:42 am

Faced with stiff competition from SpaceX, Europe has handed the construction its next generation rocket, Ariane 6, from Arianespace to a joint venture between the European companies Airbus and Safran.

The new venture will be dubbed Airbus Safran Launchers, and will take over as Europe’s launch company.

I had known that Airbus and Safran had proposed this venture to build Ariane 6, but until I read this press release I hadn’t realized that the agreed-to deal to build Ariane 6 means that Arianespace has essentially been fired by Europe as the company running Europe’s rocket operations. Arianespace, a partnership of the European Space Agency’s many partners, was never able to make a profit, while its Ariane 5 rocket costs a fortune to launch. They have now given the job to two private companies who have promised to rein in the costs. We shall see what happens.

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Europe agrees to build Ariane 6

8:01 am

The heat of competition: Faced with a stiff challenge from SpaceX, the European partners in Arianespace have worked out a deal to replace the Ariane 5 rocket with Ariane 6.

The official announcement will be made in next few days, but with Germany agreeing to the French proposal, the partnership can now proceed.

The result will be a government rocket which will likely only launch government payloads, since it will likely also cost too much to compete with SpaceX and the other new lower cost commercial companies like Stratolaunch, now developing in the U.S.

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Italy’s legislature rejects additional funding for space

12:11 am

The Italian legislature has refused to add an additional $250 million to the budget of its space program, money requested to help pay the country’s share in the development of Arianespace’s next generation commercial rocket, Ariane 6.

The money was also needed for several other ESA space projects. Not having it puts a question mark on Italy’s future in space. The article also illustrates how the committee nature of Europe’s cooperative space effort makes it almost impossible for it to compete in the commercial market.

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SpaceX vs Arianespace, according to the TV industry

9:11 am

The heat of competition: A television industry trade journal looks at Arianespace’s future plans and finds them wanting, when compared to SpaceX.

Compare that [SpaceX’s] success with the money that’s been poured into Arianespace, and the lack of progress (perhaps wholly understandable when being managed by a Euro-committee!). Ariane’s mid-way ME version (for Midlife Extension) has been on the drawing board since 1995. And at a considerable investment, and for an initial scheduled flight of only 2017-2018.

The Ariane-62/64 concept calls for as much of the “ME” design to be incorporated into the 62/64 versions. But the planned launch of the first A-62 is not for some time; some observers suggest at best 2021-22. That’s more than 20 years of planning, development and immense costs.

Read the whole thing. It illustrates the almost impossible challenge faced by Arianespace — a company designed by a committee of nations and run to distribute funding as widely as possible to those nations. For that company to successfully reshape its approach quickly so that it can successfully compete with SpaceX seems quite unlikely, and will likely result in Arianespace evolving into Europe’s government launch service, with the commercial market shifting back to the U.S.

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Controversy surrounding IXV flight cancellation

9:24 am

Italian officials are suggesting politics or incompetence for the sudden cancellation Wednesday of the November test flight of Europe’s IXV experimental spaceplane.

ESA and CNES officials up to now have either declined to comment or, in the case of ESA, said they were at a loss to explain why a program whose mission profile has not changed in several years is now suddenly stalled for [range] safety issues that in principle should have been aired and resolved long ago.

One official, saying he could not believe that the two agencies simply forgot to evaluate the safety issues, said he preferred to suspect political motives. “Look, we are about to send a spacecraft and lander to Mars, in one year,” this official said. “Europe has rendezvoused with a comet a decade after the [Rosetta comet-chaser] satellite was launched. You want me to believe that somehow the agencies just forgot to evaluate safety? That is too far-fetched. I would rather believe there is some political motive.”

The claim is that no one ever evaluated the range issues in sending the Vega rocket to the east instead of its normal polar orbit trajectory. The Italian officials are suggesting that either the officials who cancelled the mission are incompetent, or that their competition with France within ESA over launch vehicles (Ariane 6 vs Vega) prompted the cancellation.

Europe’s lead launch-vehicle nation is France, which initially balked at participating in the Vega program. A French minister said that in Europe, launch vehicles are French. The French government declined to allow the export, to Italy, of the avionics suite that guides Vega, forcing Italy to develop its own. Italy has since done so and successfully flown it on Vega. As it stands now, one official said, France must accept the idea that with Vega, Italy has led development of a vehicle that at least in principle resembles an intercontinental ballistic missile. “Some people don’t like that,” this official said.

Either way, this cancellation combined with the difficult and extended disagreements within ESA over replacing Ariane 5 suggest that the future of this European partnership is becoming increasingly shaky.

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Europe struggles to contain costs on its next generation rocket

9:02 am

New budget estimates for replacing Arianespace’s Ariane 5 rocket now say that they will have to include the construction of an entirely new launchpad, raising costs.

Nonetheless, Europe is trying to keep its per launch cost down and competitive.

ESA and the Airbus-Safran joint venture that proposes to manage Ariane development also floated per-launch costs that were lower than previous estimates. The lighter-version Ariane 62, with two solid-rocket boosters, could be built for as little as 65 million euros assuming a nine-per-year launch rhythm, officials said. The heavier Ariane 64, intended mainly for the commercial market and capable of carrying two satellites weighing a combined 11,000 kilograms into geostationary transfer orbit, could be built for 85 million euros each, again assuming a nine-per-year production rate.

These numbers are tiny compared to what they have charged in the past, and though higher than SpaceX’s, are within a price range that will keep them in business, assuming they can achieve them.

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Europe’s satellite makers want Ariane 6

8:50 pm

Europe’s six biggest satellite makers have written Arianespace to demand that the company build its next generation Ariane 6 rocket by 2019 or face a significant loss of business.

Given the advent of electric propulsion and the dramatic launch-cost reduction offered by Space Exploration Technologies Corp., the operators say, the new Ariane 6 needs to be in service by 2019 or face the risk that Europe’s Arianespace launch consortium will be permanently sidelined. The letter was signed by six members of the European Satellite Operators Association. Signatories included the chief executives of Intelsat, SES, Eutelsat, Inmarsat, Hispasat and HellasSat.

This letter is clearly intended to help prod Arianespace into making a decision on whether to build a new rocket, Ariane 6, or upgrade Ariane 5. Right now the company’s partners have been unable to come to an agreement about what to do.

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Indecision in Europe about their future commercial rocket

5:57 pm

The competition is burning them up! With Germany and France unable to come to an agreement about the next Arianespace commercial rocket, the company is considering cancelling a December conference that was supposed to settle the issue.

The basic division remains despite the German government’s alignment with the French view that Europe needs a lower-cost rocket to maintain its viability in the commercial market — which in turn provides European governments with a viable launch industry.

Despite the consensus over the longer term, the two sides remain split on whether European Space Agency governments should spend 1.2 billion euros ($1.6 billion) to complete work on a new upper stage for the existing Ariane 5 rocket, which could fly in 2018-2019, or abandon the upgrade to focus spending on a new Ariane 6 rocket, whose development would cost upwards of 3 billion euros over 7-8 years. [emphasis mine]

Though SpaceX is not mentioned in this particular article, numerous previous articles on this subject (such as this one) have made it very clear that it is SpaceX’s low prices that are driving the need for Arianespace to cut costs. The problem, as this article makes very clear, is that Arianespace’s partners can’t figure out how to do it, at least in a manner that will still provide them all an acceptable share in the pie. The result might be that the entire partnership falls apart.

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A streamlined Arianespace to build Ariane 6?

9:40 am

The competition heats up: The merged Airbus/Safran rocket division has surprised the European Space Agency with a proposed new design for Ariane 6.

The Airbus-Safran proposal, if carried to its logical end, would mean a single company building Ariane vehicles, with fewer subcontractors and much less government oversight. It would likely mean the end of the CNES launcher division as industry takes more control of Ariane design and operations.

In other words, the contractors who build the rockets for ESA want more power over that construction. They want less government oversight, and more ownership of the rocket they build.

Sounds like what’s happening in the U.S., doesn’t it? Giving ownership to the rocket builders means they not only have more flexibility and thus can be more efficient, it makes it easier for them to innovate in both construction and sales.

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The European partnership building the new Ariane 6 rocket struggles to keep its costs down to compete with SpaceX.

1:01 pm

The competition heats up: The European partnership building the new Ariane 6 rocket struggles to keep its costs down to compete with SpaceX.

Ariane 5 has been a huge triumph, orbiting half of the world’s communications satellites and claiming 60% of the 2012 world market for geostationary launches. But while the rocket is extremely precise and reliable it is also hugely expensive, with a single-payload flight costing €150-200 million. However, even at that price Ariane 5 launches are understood to be loss-making for ESA’s launch operator, Arianespace. Its high cost in in large part blamed on its industrial organisation; while private-sector SpaceX has tailored the Falcon programme for low cost production, the Ariane 5 project is organised in part to satisfy the demands of European multi-national politics.

Speaking exclusively to Flight Daily News, ESA’s Stefano Bianchi, who heads the Vega programme and now spends much of his time dedicated to Ariane 6 development, stresses that the programme is on course as set out by ESA’s member states, and any major change of configuration would require ministerial agreement.

But, he says, he and his colleagues are confident they can bring Ariane 6 to fruition at the target launch cost of €70 million – a level that would match or even undercut SpaceX. [emphasis mine]

This story is in connection with the conflict between France and Germany about how to build Ariane 6. I have specifically highlighted the cost figures to illustrate once again the reality that everyone in the industry knows (except for one commenter on my webpage), that the cost of a SpaceX launch runs in the neighborhood of $60 to $100 million, one third to half the cost of Arianespace and significantly less than the cost of practically every other launch company.

Any company that realistically wants to compete with SpaceX has to be totally honest about these facts. Their customers are honest about them, for certain.

Update: The CEO of ULA admits that the real cost of its military launches averages about $225 million per launch.

He claims they can get the cost down to $100 million per launch, but only if the military makes a bulk buy of 50 launches from them, but even that barely competes with SpaceX’s accepted launch fees ranging from $75 to $100 million, per launch. No need to buy 50 rockets from SpaceX to get these prices.

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The battle between France and Germany on how to replace the Ariane 5 rocket continues.

9:13 am

The battle between France and Germany on how to replace the Ariane 5 rocket continues.

To save money and lower cost, France wants to build a rocket that mostly uses solid rocket motors. Germany however has a problem with this.

German government officials have said they will have difficulty supporting the current Ariane 6 design, which features four identical solid-fueled stages — two as strap-on boosters, and two as the vehicle’s first and second stages — topped by the cryogenic upper stage powered by the same restartable Vinci engine that is the main element of the proposed Ariane 5 upgrade. Germany, through its space agency, the German Aerospace Center, DLR, has said it would prefer a liquid-fueled first stage for Ariane 6 as such a stage could be built in Germany and thus assure a large German industrial role in the program. Without such a role, DLR has said, German support for Ariane 6 might not be forthcoming.

The story above says that France is willing to negotiate with Germany over this, but if they do, they guarantee that Ariane 6 will be a costly rocket to build, making it very unattractive to satellite customers.

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European satellite operators are pressing Arianespace to find ways to immediately reduce the cost of launching satellites on now Ariane 5 and in the future on Ariane 6.

4:28 pm

European satellite operators are pressing Arianespace to find ways to immediately reduce the cost of launching satellites on now Ariane 5 and in the future on Ariane 6.

And why are they doing this? To quote them:

“What is sure is that Europe deserves and requires a [reorganized launcher sector] ahead of 2019, the letter says. “[C]onsiderable efforts to restore competitiveness in price of the existing European launcher need to be undertaken if Europe is [to] maintain its market situation.

“In the short term, a more favorable pricing policy for the small satellites currently being targeted by SpaceX seems indispensable to keeping the Ariane launch manifest strong and well-populated.” [emphasis mine]

It seems that they take very seriously the competitive challenge being presented by SpaceX.

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According to the former CEO of Arianespace, now head of the French space agency, SpaceX’s Falcon 9 costs significantly less to launch than the Ariane 5

10:29 pm

According to the former CEO of Arianespace, now head of the French space agency, SpaceX’s Falcon 9 costs significantly less to launch than the Ariane 5.

How big is the difference? Jean-Yves Le Gall, who until mid-2013 was chief executive of Evry, France-based Arianespace and is now president of the French space agency, CNES, addressed the point in Feb. 25 testimony to the French Senate. According to Le Gall, launching a satellite on an Ariane 5 costs around 100 million euros ($137 million). After subtracting the amount of European Space Agency subsidies to Arianespace, the per-satellite cost drops to about $100 million, he said.

Hawthorne, Calif.-based SpaceX, he said, would charge $60 million to $70 million to launch the same satellite aboard the Falcon 9. In fact SpaceX has charged even less than that to its first few commercial customers.

It is for this reason that Arianespace is struggling to decide how to build its next generation rocket. They have find a way to do it cheaper, something that is very difficult for this multi-headed European conglomerate to do.

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The European Space Agency has now released its first cost estimates for upgrading and replacing its Ariane 5 rocket.

8:54 am

The European Space Agency has now released its first cost estimates for upgrading and replacing its Ariane 5 rocket.

Europe needs to find about 1 billion euros ($1.35 billion) to complete development of an upgrade to its current Ariane 5 heavy-lift rocket, which would fly in 2018 and be capable of lifting satellites weighing 11,000 kilograms into geostationary transfer orbit, European Space Agency Director General Jean-Jacques Dordain said Jan. 17. The Ariane 5 upgrade, called Ariane 5 ME, will be on the table for ESA governments to decide, alongside the new Ariane 6 rocket, at a meeting scheduled for December in Luxembourg.

In a press briefing in Paris, Dordain said it is too early to say how much Ariane 6 will cost to develop. Government and industry estimates have ranged between 3 billion and 4 billion euros, with an inaugural flight in 2021.

As Doug Messier notes in his worthwhile analysis of these numbers, “Europe is in deep trouble.” From a customer’s perspective, these new rockets won’t fly (pun intended). The cost is too high and the development time too long. By the time they get both Ariane 5 and Ariane 6 ready for launch they will be obsolete and overpriced, when compared to the rocket’s that will already be available from their competitors.

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In meetings today the European Space Agency has decided to upgrade Ariane 5 rather than immediately build a new Ariane 6 rocket.

9:56 am

In meetings today the European Space Agency (ESA) has decided to upgrade Ariane 5 rather than immediately build a new Ariane 6 rocket.

Normally I would label this story as an example of “the competition heating up.” In this case, however, I don’t see how an upgrade of Ariane 5 can possibly be competitive. The rocket has been so expensive to operate that — even though it has dominated the launch market for years and is very reliable — ESA has had to subsidize its cost. It has never made a profit. I don’t see how they can reconfigure it enough to bring its cost down to compete with Falcon 9. In other words, they are trying to put lipstick on a pig.

Nor is this surprising. Arianespace is a government-run business, operated like a committee with the member nations of ESA all having a say. Under this arrangement, it is difficult if not impossible to get a quick and efficient decision. Moreover, political concerns will often outweigh issues of efficiency and profits.

In the open competitive market of privately-run companies that the launch market is becoming, I am very skeptical this kind of business can survive.

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Faced with stiff competition in the launch market, Europe struggles to come up with a competitive replacement for Ariane 5

1:51 pm

Faced with stiff competition in the launch market, Europe struggles to come up with a competitive replacement for Ariane 5

“I strongly believe we have to decide, as quickly as possible, to develop a new-generation launcher to be competitive in the market as it is forecast, and with the competitors,” [ESA Director General Jean-Jacques] Dordain said at the Berlin air show last month, a reference to new launch vehicle developments in India, China and the U.S., where Space Exploration Technologies’ low-cost Falcon 9 is challenging the global launcher market.

While space cadets might argue about launch prices till the cows come home, the actual competitors in the industry know better: SpaceX’s low prices are real and are forcing everyone to find ways to lower costs or lose business.

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