Tag: Arianespace

Arianespace and the Russian-owned Sea Launch are seeking to get the restrictions against them removed so that they can sell their services to more customers.

9:26 am

The competition heats up: Arianespace and the Russian-owned Sea Launch are seeking to get the restrictions against them removed so that they can sell their services to more customers.

Arianespace wants to sell its launch services to the U.S. government, something it is not allowed to do right now because of U.S. restrictions. These are the same kinds of restrictions that has prevented SpaceX from launching military satellites and which that company is now contesting.

Russia meanwhile wants to use Sea Launch for its own payloads, but because Sea Launch’s platform is based in California, the Russian government won’t allow their payloads on it because of security reasons. They want the platform moved to Russia so that they can use their own company to launch their own satellites.

The article also describes how Japan is trying to reduce the cost of its H-2A rocket by 50% so that it can become more competitive.

All in all, I would say that the arrival of SpaceX has done exactly what was predicted, shaken the industry out of its doldrums. How else to explain this sudden interest in open competition and lowering costs? These companies could have done this decades ago. They did not. Suddenly a new player arrives on the scene, offering to beat them at their own game. It is not surprising that they are fighting back.

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Arianespace, under severe competitive price pressure from SpaceX, begs for more subsidies from ESA.

9:21 pm

The competition heats up? Arianespace, under severe competitive price pressure from SpaceX, begs for more subsidies from ESA.

In comments responding to a Feb. 11 audit of the French Accounting Court, Cour des Comptes, Israel said that since 2005 Arianespace has improved its competitiveness to the extent that some €200 million ($273 million) in annual subsidies from the 20-nation European Space Agency (ESA) have been halved. In addition, the reliability of the Ariane 5, which has seen 58 consecutive successes since 2002, has allowed the company to increase launch prices. The company also has reduced costs with a recent bulk buy of 18 Ariane 5 rockets that saved Arianespace 5%.

Nevertheless, Israel said the arrival of the medium-lift Falcon 9 as a competitor at the low end of the commercial communications satellite market, with prices substantially lower than what Arianespace charges for Ariane 5, means the company may be forced to ask ESA governments to increase price supports beyond the current €100 million per year. [emphasis mine]

In other words, this government-funded boondoggle doesn’t know how to compete effectively on the open market, and wants an additional government bailout to keep its head above water.

Note also the text in bold. Several commenters on this website have repeatedly insisted that SpaceX’s Falcon 9 was not the bargain claimed, despite numerous examples in the past three years of their competition saying they were that inexpensive. This statement by Arianespace’s CEO reaffirms the fact that SpaceX is cheaper, and is forcing major changes to the launch industry.

In related news, French government auditors have found much wrong with Arianespace’s current long term commercial strategy.

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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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Arianespace, in an effort to trim costs, is considering slashing the number of companies that will build its next generation rockets from 150 to 50.

3:35 pm

The competition heats up: Arianespace, in an effort to trim costs, is considering slashing the number of companies that will build its next generation rockets from 150 to 50.

You might call this the SpaceX effect. Their success and lower launch costs is forcing changes throughout the launch industry.

Note also that there is certainly a lot of room for Arianespace to trim, considering that this European rocket company has still never made a profit, despite dominating the commercial launch market for years.

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Arianespace has ordered the construction of an additional 18 Ariane 5 rockets.

4:07 pm

Arianespace has ordered the construction of an additional 18 Ariane 5 rockets.

This construction order, if it reflects actual launch contracts, gives Arianespace some margin while it works to find ways to compete in the launch business, as expressed by the last sentence of the above article: “Astrium managers recently called for a thorough overhaul of the Ariane contractor mix with a view to reducing prices to stay viable in the competitive world commercial launch market.”

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Arianespace has signed a contract to build 18 more Ariane 5 rockets.

9:13 am

The competition heats up: Arianespace has signed a contract to build 18 more Ariane 5 rockets.

This order takes the number of Ariane 5 launchers in production for Arianespace to 38, and guarantees the continued provision of launch services for the European operator’s customers at the Guiana Space Centre through to the end of the decade.

Without doubt Arianespace is now in a solid position through the end of the decade. What will happen to them, however, when Falcon 9 and other cheaper rockets begin to fly regularly will be the real story. They have not yet found a way to cut their costs.

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While the launch industry eagerly awaits SpaceX’s first commercial Falcon 9 launch on September 10, Arianespace has been signing up customers.

10:16 am

The competition heats up: While the launch industry eagerly awaits SpaceX’s first commercial Falcon 9 launch on September 10, Arianespace has been signing up customers.

Arianespace Chief Executive Stephane Israel said Aug. 29 after the last Ariane 5 launch that the company has booked around 300 million euros ($400 million) in new orders in recent weeks, bringing this year’s total contract volume to 1 billion euros. Industry officials said the contracts are for government missions in Brazil and Japan, and commercial operators in Brazil, the United States, Mexico and Spain.

The Ariane 5 is incredibly reliable, having successfully completed more than fifty launches in a row. It is also much more expensive that Falcon 9, which is expected to cost a customer about half as much to get a payload into orbit.

Until SpaceX proves Falcon 9, Arianespace will be in a strong position to get customers. Once Falcon 9 starts flying regularly however, Arianespace will begin to lose business to this cheaper alternative. Thus, the new contracts will help tide the company over while they scramble to figure out how to reduce costs in order to compete.

In related news, SpaceX readies the new upgraded Falcon 9 for launch.

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Arianespace will not be able to set its launch manifest for the remainder of this year until late July.

7:09 pm

The competition heats up: Arianespace will not be able to set its launch manifest for the remainder of this year until late July.

The year’s third Ariane 5 mission is scheduled for launch in late July carrying the large Alphasat satellite for mobile satellite services operator Inmarsat of London and the European Space Agency (ESA); and India’s Insat-3D telecommunications satellite.

Beyond that, Israel said, it is unclear which commercial payloads will be placed on which of the two remaining Ariane 5 flights, scheduled for this fall, or what the Ariane 5 manifest looks like for 2014. A big question is whether Arianespace has any slots open in the Ariane 5 manifest in 2014 to accommodate new customers who want to switch to Ariane 5 because their selected vehicle is late.

This article not only suggests that Arianespace has more business than it can handle, it is also provides evidence that the company is scrambling to cut costs in order to compete.

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Europe admits that its planned accelerated upgrades to Ariane 5 are intended to counteract the competition from both Russia’s Proton and SpaceX’s Falcon 9 rockets.

9:27 pm

The competition heats up: At a briefing at the Paris Air Show this week Arianespace admitted that its planned accelerated upgrades to Ariane 5 are intended to counteract the competition from both Russia’s Proton and SpaceX’s Falcon 9 rockets.

I love competition. It energizes everything.

Update: This long article specifically discusses how Arianespace is scrambling to meet the competition. Key quote:
» Read more

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