The competition heats up: Arianespace’s Ariane 5 rocket successfully launched its heaviest payload ever yesterday by placing two Intelsat communications satellite in orbit.
This was also the first launch by Arianespace since the ESA company was taken over by the private joint partnership of Airbus Safran.
The competition heats up: The bureaucrats in the European Union have given their approval to the purchase by Airbus-Safran Launchers of Arianespace, thereby clearing the way for the privatization of that ESA entity and the construction, under Airbus-Safran control, of Ariane 6.
Following an in-depth review, the European Commission has approved under the EU Merger Regulation, the acquisition of Arianespace by Airbus Safran Launchers (ASL), a joint venture between Airbus and Safran. This approval is subject to conditions. Commissioner Margrethe Vestager, in charge of competition policy, said: “A well-functioning satellite and launcher industry is important to guarantee that European companies and institutions can gain access to space at competitive terms. The commitments offered by ASL ensure that after its takeover of Arianespace, all players in the industry will continue to have incentives to innovate.”
The Commission had concerns that the transaction would give rise to flows of sensitive information between Airbus and Arianespace to the detriment of competing satellite manufacturers and launch service providers. The Commission’s approval is conditional on the implementation of the commitments offered by the companies to address these concerns.
I must say that, in reading this story, I understood far better why the United Kingdom voted to leave the European Union. Though this particular deal is certainly different and involves many important government issues, if every private business deal is subject to the numbing concerns of this commission, I myself would run screaming from them as fast as I could.
After several launch delays, including a scrub because of a problem with the rocket’s navigation system, Arianespace successfully used a Russian Soyuz rocket to launch five satellites in a variety of orbits.
The competition heats up: The head of OneWeb confirmed today that his company is going to establish its base of operations in Florida.
The founder of OneWeb, Greg Wyler, confirmed to the Orlando Sentinel that his company is moving to Kennedy Space Center. Wyler plans to announce more details Tuesday morning in a news conference with Gov. Rick Scott, who will explain $20 million in state incentive dollars for the company. “It’s pretty exciting to see that Florida will be the base for a new satellite network that will extend high-speed access to 54 percent of the globe,” Wyler said in a phone interview.
OneWeb already has $500 million in funding to launch the new satellites, designed to boost internet access globally. It also has contracts with Virgin Galactic and French company Arianespace for launches. The company plans to hire at least 250 people.
The important part of this story for Florida is that OneWeb will be building its satellites there. Whether any are ever launched from Florida will depend on Virgin Galactic ever getting off the ground. Otherwise, most of these satellites will launch from French Guiana.
In the heat of competition: Even as Airbus Safran claimed today that Ariane 6 will be price competitive with SpaceX’s Falcon 9, the company cannot begin work on the new rocket because of a turf war Arianespace and French tax collectors.
The tax issue is as follows:
Airbus and Safran had agreed that Safran would pay Airbus 800 million euros ($874 million) in cash, in addition to its rocket-engine manufacturing capability, to become a 50-50 ASL shareholder with Airbus. Airbus officials since the beginning of the year have been negotiating with French tax authorities to determine how to minimize the tax bite of the cash transfer, which industry officials could be as high as 500 million euros, leaving Airbus with a net of just 300 million euros.
Delays in the cash transfer have meant that ASL, which is expected to count 8,000 employees, has been operating with only around 400 employees. In addition, it has made it difficult for the initial ASL team to present a fixed-price Ariane 6 production proposal to the 22-nation European Space Agency, which is financing the majority of Ariane 6 development.
In addition, the merger is being reviewed by the European Commission, part of the European Union.
The commission is looking at whether Arianespace’s minority shareholders, who are Ariane 6 contractors, will be protected once Airbus Safran Launchers raises its Arianespace shareholding to 74 percent from today’s 39 percent. The commission is also reviewing concerns expressed by satellite builders that Airbus, which is a major manufacturer of commercial satellites, might give its own satellites preferential treatment in setting the Ariane 6 manufest.
Airbus Safran still insists they can get the new rocket launched by 2020, but somehow that doesn’t seem reasonable to me, especially because I expect the French and European government authorities here to carve out their piece of the action, thus making it harder for the private company to deliver on time.
The competition heats up: Arianespace today announced a major reorganization and additions to its executive committee.
I’m not sure how rearranging the suits in their executive committee will make their rockets cheaper and more efficient, but obviously they think it will help.
The competition heats up: In successfully placing a commercial communications satellite in orbit last night, Arianespace also did its second consecutive single satellite launch.
The Ariane 5 rocket is designed to carry two satellites, and normally does so in order to maximize its profit per launch. That they have done two straight commercial launches without a second satellite suggests to me that the competition from SpaceX is taking customers from them. The scheduling of the secondary payload usually suffers because priority is given to the primary satellite. Those customers thus might be switching to SpaceX in the hope they can gain better control over their own launch schedule, while also paying far less for their launch.
Then again, considering how unreliable SpaceX’s own launch schedule has been, it is unlikely these customers will have yet gained any scheduling advantages.
In the heat of competition: Because of delays, a satellite company has shifted its launch vehicle from SpaceX’s Falcon Heavy to Arianespace’s Ariane 5
The company, ViaSat, still has a contract with SpaceX to use Falcon Heavy to launch later satellites, but they decided they could no longer wait and needed to get the satellite in orbit by 2017, something that SpaceX could no longer guarantee. They had to pay more to fly on Ariane 5, but it appears they were able to negotiate a price break with Arianespace to close the deal.
The competion heats up: Arianespace successfully placed a commercial communications satellite into geosynchronous orbit yesterday, its first launch of 2016.
The competition heats up: According to Arianespace’s CEO Stephane Israel, the company signed more new launch contracts in 2015 than SpaceX, despite their competitor’s much larger PR footprint.
At a briefing here outlining Evry, France-based Arianespace 2015 record and plans for 2016, Israel sought to portray Arianespace as once again in the driver’s seat when it comes to commercial launches. After drawing even with Hawthorne, California-based SpaceX in 2014, with nine commercial orders each, Arianespace’s count for 2015 showed its Ariane 5 rocket winning 14 contracts for geostationary-orbit satellites, compared to nine for SpaceX and one each for International Launch Services of Reston, Virginia, which markets Russia’s Proton; and for the Atlas 5 rocket of United Launch Alliance of Centennial, Colorado.
Arianespace’s count includes one undisclosed customer. Unless it’s identified, it will not be included in SpaceNews’s annual count of firm contract awards. Of the 13 satellites remaining, two are for Europe’s meteorological satellite organization, Eumetsat, and cannot be considered commercial wins. In addition to the geostationary-satellite contracts, Arianespace in 2015 booked the largest single launch contract, to use 21 Russian Soyuz rockets — including the Europeanized version operated from Europe’s spaceport — to launch the OneWeb low-orbiting broadband constellation.
Israel also spent a lot of time at the briefing dealing with reporters’ questions about SpaceX, where he poo-pooed the significance of the Falcon 9 first stage landing, noting repeatedly the accepted wisdom that the stress of launch limits the re-usability of rocket stages. This suggests that Arianespace’s next generation rocket, Ariane 6, is not likely to have this capability. Considering that its launch price is now estimated to be between $90 and $100 million, I wonder how they will compete with a reusable Falcon 9 that will likely cost a third this price.
That the Russians only signed one new contract for its Proton last year, as noted in the quote above, also tells us that SpaceX is getting most of its market share from the Russians. If the company should continue to lower its costs and increase its launch rate over time, they will then start stealing market share from others. Thus, Arianespace’s CEO makes a very big mistake if he takes their competitive threat lightly.
The competition heats up: OneWeb today announced it had raised a half billion dollars in investment capital, and has also awarded two major launch contracts, one to the Arianespace/Russian Soyuz partnership and the other to Virgin Galactic’s LauncherOne.
The Soyuz gets 21 launches while LauncherOne gets 39. For Virgin Galactic this contract might save the company, as their effort to fly tourists on SpaceShipOne has badly stalled. The effort to build LauncherOne, however, seems to be gaining steam.
The competition heats up: Arianespace’s Vega rocket successfully completed its fifth launch on Tuesday, placing a European Earth resources satellite into orbit.
