Tag: Arianespace

France sells Arianespace to Airbus Safran

9:16 am

The competition heats up: In negotiations resulting from increased competition in the launch industry, France and its space agency have agreed to sell their stock in Arianespace to Airbus Safran, builders of the new Ariane 6, giving that private company 74% ownership.

I have reported on this deal earlier. This report makes it clear, however, that Arianespace will essentially become irrelevant after the deal is completed. Airbus Safran will build and own the rocket, and will be in charge.

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ESA and Airbus Safran agree on deal to build Ariane 6

4:56 pm

The competition heats up: Airbus Safran have come to an agreement with the European Space Agency on building Ariane 6, Europe’s next commercial rocket.

The key part of the deal is that ESA and Arianespace will be ceding ownership of the rocket to Airbus Safran.

The French government is likely to approve the sale of CNES’s 34-percent stake in the Evry, France-based Arianespace launch service provider to Airbus Safran Launchers at about the same time as the Ariane 6 development contract is signed.

With that sale, Airbus Safran will control Arianespace, which means they will also own the rocket they are building for Arianespace. This is fundamentally different than the situation with Ariane 5, which Airbus built for an Arianespace owned and run by the many-headed ESA. The result was a bloated government-run operation that never made a profit.

Now Airbus will own it instead. They have already indicated that they will trim the costs at Arianespace. More importantly, with ownership will come the freedom to compete effectively in the much more competitive launch market created by the arrival of SpaceX. No need to get permission from ESA to do things.

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Arianespace admits it is in a head-to-head competition with SpaceX

9:21 am

In testimony at a hearing in the French parliament the head of Arianespace admitted that the company has been in a head-to-head competition with SpaceX for the past two years, with SpaceX grabbing half the business.

He also claimed that they think they will be able to compete with SpaceX, even if it succeeds in recovering and reusing its first stage.

Israel said Arianespace fully expects SpaceX to succeed in its attempt to recover its Falcon 9 first stage.

But that’s just the start of the challenge, he said. It remains unknown what the refurbishment costs will be compared to the cost of churning out a fresh stage from an existing production line. He said it is also unclear whether commercial fleet operators will immediately accept placing $200 million telecommunications satellites on a rocket with a refurbished stage.

Finally, he said, flying a reusable stage means sacrificing first-stage performance so that enough energy is available to power it back to its recovery point. That power is thus unavailable for the mission, which is one reason why Hawthorne, California-based SpaceX thus far has attempted to recover its stages only on low-orbit missions, not for missions to geostationary transfer orbit, where most commercial satellites operate.

All true, but if Arianespace sits on its hands because of these facts it will eventually lose. It needs to rise to the challenge that SpaceX poses, not poo-poo the challenge.

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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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A dozen launches for Arianespace in 2015?

8:39 am

The competition heats up: Arianespace’s launch manifest for 2015 predicts a busy year, with a hoped for pace of one launch per month.

What I like most in the article however is what this paragraph says:

The launch provider won nine contracts for geostationary satellites in 2014, and eight of them are the right size to ride in the Ariane 5’s lower berth, [said Stephane Israel, Arianespace’s chairman and CEO] in an interview with Spaceflight Now.

SpaceX has emerged as the chief rival to the veteran French-based launch company, which started the commercial launch business when it was founded in 1980. SpaceX and Arianespace cinched the same number of commercial launch contracts last year. Partly in response to SpaceX’s bargain prices and partly as an initiative to ensure the Ariane 5 has a steady balance of heavier and lighter payloads, Arianespace cut prices for customers with smaller satellites. [emphasis mine]

I love how competition has lowered costs while simultaneously increasing the launch rate for multiple companies. Before SpaceX arrived to challenge established companies like Arianespace the accepted wisdom in the launch industry was that it was foolish to have more rockets capable of launching at lower costs, because there simply wasn’t enough business to justify it. You’d supposedly end up with idle facilities costing money with no payloads to launch. I always thought that theory was hogwash. Elon Musk and SpaceX have definitely proven it so.

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Test flight of Europe’s first prototype space plane has been rescheduled

9:55 am

The competition heats up: Preparations have resumed for a February 11 test flight of a European prototype space plane, initially scheduled for November but cancelled at the last minute because managers suddenly discovered its launch path was going to go over land.

The launch trajectory of the IXV space plane on a suborbital trajectory will differ from the Vega rocket’s previous flights, which flew north from the space center with satellites heading for high-inclination polar orbits. The launch of IXV will head east from Vega’s launch pad, and the geometry of the French Guiana coastline means it will fly over land in the first phase of the launch sequence.

Officials said they slightly adjusted the launch track to alleviate the the safety concern.

The four-stage Vega rocket was stacked on the launch pad at the Guiana Space Center, and the IXV spacecraft was about to be fueled with hydrazine maneuvering propellant when officials announced the delay in October. A ship tasked with retrieving the space plane after splashdown in the Pacific Ocean had already left port in Italy when news of the launch delay was released.

I remain suspicious about the cause of the delay in November. How could they not have known about the launch trajectory until the last second? Instead, I suspect it occurred because of politics higher up in ESA related to Italian, German, and French tensions over the future of Arianespace. The Italians are the lead on this space plane project, to the apparent chagrin of the French, who mostly run the launch facility in French Guiana. Moreover, it appears the Italians have generally sided with the Germans against the French in the Ariane 6 design negotiations. I wonder if the delay was instigated by higher management in an effort to influence those negotiations.

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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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