Tag: Arianespace

Labor strikes force Arianespace to suspend all French Guiana launches

3:48 pm

Arianespace today announced that it is suspending all launches from French Guiana indefinitely while it works out the labor problems that surfaced this week with wildcat strikes.

Arianespace chief executive Stephane Israel tweeted Wednesday that officials will set a new target launch date as soon as possible.

The delay will likely cause Arianespace to push back the following launch from French Guiana. Once the Ariane 5 takes off, a Russian-made Soyuz rocket is next in line at the tropical space base, slated to loft the Boeing-built SES 15 communications satellite into orbit to provide in-flight Internet connectivity for airline passengers, and support government, networking and maritime customers across North America. SES 15 also hosts a payload for the FAA’s Wide-Area Augmentation System to enhance airline navigation and safety across the United States.

Liftoff of SES 15 was scheduled for April 4, but it takes nearly two weeks to reconfigure the French Guiana spaceport and downrange tracking stations between launches.

These problems play into the hands of Arianespace’s competitors, SpaceX, the Russians, and ULA.

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More strike actions delay Ariane 5 again

6:47 pm

Protests by local workers that have blocked roads has forced Arianespace to once again delay the Ariane 5 launch of two commercial satellites.

Local newspaper France Guyane reports that local electricians, hospital employees, farmers and transportation workers — including the drivers that transport the Ariane 5 rockets — are among those protesting working and living conditions in the South American town that’s home to Europe’s main launch center. Locals blocked roads around Kourou Monday and Tuesday, preventing Arianespace from transferring the rocket from the final assembly building at the spaceport to the launch zone. Evry, France-based Arianespace launches the Ariane 5, Soyuz and Vega rockets from the Guiana Space Center.

…Local employees of Endel, the French industrial maintenance company that trucks the Ariane 5 rockets for Arianespace, are striking to reopen wage negotiations. Those discussions began Monday night, but failed to reach an agreement, according to France Guyane. The paper reports that other members of the union UTG, as well as the French Democratic Confederation of Labor (CDTG) and Force Ouvrière unions, are also involved in various demonstrations.

The Guyanese Union of Road Transport (UGTR) is also protesting the use of foreign trucks from the European construction company Eiffage, France Guyane says. CNES in July awarded Eclair6, a consortium led by Eiffage, a $222.2 million contract 2016 to build the launch facility for the future Ariane 6 rocket. UGTR said it asked the spaceport not to bring in foreign trucks to do work that that its members could do with equally capable trucks of their own.

None of this is going to help Arianespace in its effort to compete in the modern very aggressive launch industry.

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Ariane 5 launch delayed by labor strike

4:06 pm

The launch of two communications satellites on an Ariane 5 was delayed today by a strike at Arianespace’s French Guiana spaceport.

A work stoppage at the Ariane 5 rocket’s launch base in South America prevented rollout of the booster to the launch pad Monday, pushing back the liftoff of two communications satellites for Brazil and South Korea until at least Wednesday.

The fully-assembled launcher was set to roll out of the final assembly building Monday morning for the 1.7-mile (2.7-kilometer) journey to the ELA-3 launch zone at the Guiana Space Center. Arianespace officials were aiming for a launch attempt Tuesday evening.

But the rollout did not happen due to a “social movement” at the spaceport, according to Arianespace. Officials blamed the postponement on a strike among a segment of the workforce at the Guiana Space Center, which is managed by CNES, the French space agency, with support from the European Space Agency and numerous European contractors.

The article suggests that this was not a sanctioned strike, based on the expiration of a contract. Instead it appears to have been a wildcat strike, created to apply the most pressure in order to blackmail the company into giving the strikers more money. If so, and if Arianespace agrees to terms, its labor relations in French Guiana are going to decline quickly.

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ESA commits $91 million to reusable rocket engine development

7:32 pm

The competition heats up? Despite a general lack of interest in reusability, the ESA has now committed $91 million to develop a new low cost prototype reusable rocket engine.

In an interview with SpaceNews, Airbus Safran Launchers CEO Alain Charmeau said FLPP is allocating 85 million euros ($91 million) to Prometheus to fund research and development leading to a 2020 test firing. Now that Prometheus is an ESA program, Charmeau expects more countries will get involved. “ESA will pay the contract to Airbus Safran Launchers and then Airbus Safran Launchers will cooperate with European industry, of course France and Germany, but we will have also contributions from Italy, Belgium, Sweden and probably a couple of others to a smaller extent,” Charmeau said.

This project reminds me of many NASA development projects. The agency spends the money to do a test firing, but the prototype is never used and gets abandoned as soon as the test is completed.

Things might change, however, come the 2020s. By then I think American companies will be quite successful in their effort to create reusable rockets, and that will leave Europe in the lurch competitively. Their solution at this time for combating that future competition however is not getting more competitive. Instead, as noted in the article at the link, Airbus Safran, the company building Ariane 6, wants the ESA to compel its members to use their rocket, regardless of cost.

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Arianespace wins two contracts, aims for a dozen launches in 2017

9:34 am

The competition heats up: Arianespace announced yesterday that it has won two new commercial launch contracts, and will aim in 2017 to tie its own record for yearly launches at 12.

Arianespace will also seek to tie its record number of launches with 12 missions planned this year. The company first reached this cadence in 2015, and was on track to tie it again last year were it not for a shipping issue that delayed the launch of DSN-1, a Japanese X-band military communications satellite damaged en route Europe’s Guiana Space Centre in Kourou, French Guiana.

I suspect that one reason Arianespace is getting these contracts, despite charging significantly more than SpaceX, is that they are successfully getting their customer’s payloads into orbit. SpaceX has a gigantic backlog of launches, so it makes no sense to give them more work as the launches will certainly not occur when these satellite companies need them to occur. This fact only ups the pressure and the competition. SpaceX has got to start getting that backlog into orbit, or else its business model will suffer significantly.

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Russia and ESA in money dispute

9:40 pm

A money dispute between Russia and France could threaten the ESA/Russian ExoMars partnership, as well as the Arianespace deal that launches Soyuz rockets from French Guiana.

In what appears to be an attempt to force France’s European neighbors to apply pressure to Paris, Roscosmos hinted that multiple cooperative space efforts between Russian and the European Union, and with the European Space Agency (ESA), could suffer if the payments are not freed. The payments, which are not disputed by Arianespace, have been one of the collateral effects of the battle by former shareholders of Russia’s Yukos oil company. In 2014, these shareholders won an initial award of $50 billion from an international arbitration panel in The Hague, Netherlands, against the Russian government for dismantling the company.

Since then, the shareholders have been trying to collect Russian government assets wherever they find a sympathetic legal environment outside Russia, including France and Belgium. In France, different shareholder representatives sought seizure of the Eutelsat and Arianespace payments. The same dispute has blocked payments to other Russian companies. Paris-based satellite operator Eutelsat owes Russia’s biggest satellite operator, Russian Satellite Communications Co. (RSCC) of Moscow, around $300 million for services related to Eutelsat use of RSCC satellites.

Russia needs cash, which is why they need their partnership with Arianespace, which has brought them a lot of cash over time. Their problem is that the money owed the Yukos oil company shareholders has allowed those shareholders to put liens on any Russian earnings in Europe, which has only increased Russia’s financial bind. If Russia can’t get its hands on its Arianespace earnings, then it really makes no sense for them to continue the partnership. Better to threaten to pull out with the hope that the threat will maybe force payment.

Moreover, Russia might also be realizing that it cannot at present afford to participate in ExoMars and is looking for a way to get out of that commitment. This money dispute gives them that out.

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Arianespace launches 5 satellites with Vega rocket

12:06 am

The competition heats up: Arianespace today used its Vega rocket to launch 5 commercial satellites from its spaceport in French Guiana.

Designated Flight VV07, the mission was Vega’s seventh since beginning operations in 2012 (all seven of which were successful), and it further demonstrated the capabilities of a light-lift vehicle that completes Arianespace’s launcher family – joining the company’s medium-lift Soyuz and heavyweight Ariane 5 in reliable side-by-side operations from the Spaceport in French Guiana. Vega is provided to Arianespace by Italy’s ELV S.P.A., which is the industrial prime contractor.

Tonight’s success also marked the first time since entering its commercial phase that Vega carried passengers on a single launch for two customers/users that are from outside the European market: Terra Bella is a Google company and the four SkySat satellites are its initial payloads entrusted to Arianespace; while PerúSAT-1 was orbited under a turnkey agreement between Airbus Defence and Space and Peru’s CONIDA national space agency.

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ESA/Airbus Safran deal finalized

12:10 pm

The competition heats up: The European Space Agency today gave its final approval to the deal that will have Airbus Safran Launchers design, build, and essentially own the new Ariane 6 rocket that ESA hopes to use to compete in the launch market in the 2020s.

This deal essentially closes the book on Arianespace. Though it officially still exists, it will be Airbus Safran that will be running the show in the future.

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Arianespace offers to pick up SpaceX business

9:35 pm

The competition heats up: In an effort to gain more business, Arianespace is offering to add an additional launch to its 2017 schedule for any satellite companies whose payload launch is being delayed by both SpaceX’s Falcon 9 launchpad explosion as well as a delay in Russian Proton launches due to its own technical issues.

In his remarks it seemed to me that the CEO of Arianespace was almost gloating.

In a Sept. 7 interview with France Info radio, Israel reiterated his confidence in what he portrayed as Arianespace’s more plodding, deliberative — and higher-cost — approach to launches when compared to SpaceX.

Arianespace does not want a reusable rocket for the moment, he said, because it’s not certain that reusability can reduce costs and maintain reliability. The Ariane 6 rocket, to operate starting in 2020, will not be reusable. The company also is wary of the Silicon Valley ethos that champions constant iteration, which he said has been a feature of Hawthorne, California-based SpaceX as well. “We think that the more a launch resembles the preceding launch, the better we are for our customers because we remain in the ‘explored domain’ where everything is understood,” Israel said.

In the short run he and Arianespace might benefit by this situation, but in the long run they will face a shrinking market share if they cannot lower the price of their rockets.

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European commission approves Airbus-Safran buy of Arianespace

9:22 am

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.

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OneWeb to set up operations in Florida

12:41 am

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.

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Ariane 6 delayed by tax and legal issues

5:35 pm

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.

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Second solo Ariane 5 launch in 2016

8:46 am

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.

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SpaceX loses a launch payload

10:11 am

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.

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Arianespace sales top SpaceX in 2015

10:14 am

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.

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OneWeb awards major launch contracts

9:51 am

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.

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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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