OneWeb files for bankruptcy

Capitalism in space: OneWeb yesterday made official the rumors from the past week by filing for bankruptcy in the United States.

It appears that those rumors were essentially true, that one of the company’s biggest investors, Softbank, was having financial trouble due to the stock market crash caused by the Wuhan flu panic, and was not able to continue its investment in OneWeb. The result was that OneWeb could not pay its creditors, the biggest of which was Arianespace, which was managing the launch of most of the company’s satellites, using Russian Soyuz rockets from either French Guiana or Kazakhstan.

With about 18% of its constellation already in orbit and the rest pretty much ready for launch this year, the company has valuable assets that in bankruptcy will have value. It will likely be sold and continue operations under new management.

In the meantime this filing will hurt the bottom line of Arianespace and Russia.

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OneWeb faces bankruptcy, even as it is about to launch more satellites

According to reports today, OneWeb, one of two companies presently building a constellation of satellites for providing worldwide internet access, is facing a serious cash crunch and might have to file for bankruptcy.

The main investor, Softbank, apparently is short of cash due to bad investments, worsened further by the stock market crash due to the Wuhan virus panic this week. Furthermore, the panic has caused Arianespace, which is launching many of OneWeb’s satellites, to suspend all launches from its French Guiana spaceport.

OneWeb has already launched 74 satellites, with a Soyuz launch of 34 more from Russia tomorrow. While fewer than the 360 that its main competitor SpaceX has launched of its Starlink constellation, OneWeb doesn’t need as many based on constellation’s design to become operational. After tomorrow’s launch, OneWeb will have launched about 18% needed, compared to SpaceX’s 24%.

If OneWeb goes out of business, it will do great harm to both Russia’s launch industry as well as Europe’s Arianespace, both of which have contracts for launching most of OneWeb’s satellites. In fact, for Russia, OneWeb is pretty much the only commercial customer they have. If they lose that it will be a serious financial blow.

Similarly, Arianespace’s next generation rocket, Ariane 6, has had problems garnering contracts. Losing the OneWeb launches will also hurt their bottom line.

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Arianespace suspends all launches from French Guiana due to COVID-19

The insanity mounts! Arianespace today announced it is suspending all launches from its French Guiana launchsite due to COVID-19.

No word on how long this suspension will last. So far, French Guiana has six confirmed cases of the Wuhan virus. In recent years that nation has routinely seen between one to two thousand flu cases. I wonder why they didn’t shut down then?

Or if they can ever reopen, considering the severity of flu cases annually?

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Arianespace and China complete launches

Arianespace’s Ariane 5 rocket today successfully placed two communications satellites into orbit, one for the commercial company Eutelsat and the second for India.

This was Arianespace’s first launch in 2020.

UPDATE: China’s smallsat solid rocket, Kuaizhou 1A, operated by a Chinese company dubbed GalaxySpace, also launched a commercial communications satellite today.

The leaders in the 2020 launch race:

3 China
1 SpaceX
1 Arianespace (Europe)

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Soyuz rocket launches five satellites for Arianespace

A Russian Soyuz rocket, launching from French Guiana for Arianespace, successfully placed five satellites in orbit early this morning, including CHEOPS, a European space telescope designed to study exoplanets.

Though this was a Russian rocket, I count it as an Arianespace launch as that is the company under which the launch operates. I also realize this is open to debate.

The leaders in the 2019 launch race:

30 China
20 Russia
13 SpaceX
8 Arianespace (Europe)

China still leads the U.S. 30 to 26 in the national rankings.

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SpaceX wins launch contract for seven SES satellites

Capitalism in space: SES yesterday announced that it has awarded SpaceX’s Falcon 9 the launch contract for the next seven satellites in its next generation communications constellation.

This is a big win for SpaceX, made even more clear by a briefing held yesterday with reporters by Arianespace CEO Stéphane Israel. In that briefing Israel outlined that company’s upcoming launch contracts, where he also claimed that this launch manifest is so full he had to turn down SES’s launch offer.

Because of its full manifest, Arianespace was unable to offer SES launch capacity in 2021 for its next generation of medium Earth orbit satellites, mPOWER. SES announced plans Sept. 9 to fly mPOWER satellites on SpaceX Falcon 9 rockets from Florida’s Cape Canaveral. Arianespace launched the 20 satellites in the SES O3B constellation.

It was important to SES to launch in 2021, Israel said. Given Arianespace’s full manifest, it was difficult “to offer the guarantee they were asking for,” he added.

If you believe that I have a bridge I want to sell you. Arianespace has been struggling to get launch contracts for its new Ariane 6 rocket. They have begun production on the first fourteen, but according Israel’s press briefing yesterday, Ariane 6 presently only has eight missions on its manifest. That means that six of the rockets they are building have no launch customers. I am sure they wanted to put those SES satellites on at least some of those rockets, and couldn’t strike a deal because the expendable Ariane 6 simply costs more than the reusable Falcon 9.

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Results released of July Vega launch failure investigation

The European Space Agency (ESA) this week released the results of its investigation into the July 10, 2019 launch failure of Arianespace’s Vega rocket, the first such failure after 14 successful launches.

The failure had occurred about the time the first stage had separated and the second stage Z23 rocket motor was to ignite. The investigation has found that the separation and second stage ignition both took place as planned, followed by “a sudden and violent event” fourteen seconds later, which caused the rocket to break up.

They now have pinned that event to “a thermo-structural failure in the forward dome area of the Z23 motor.”

The report says they plan to complete corrective actions and resume launches by the first quarter of 2020.

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Satellite company switches from Falcon Heavy to Ariane 5

Capitalism in space: The communications satellite company Ovzon has switched from SpaceX’s Falcon Heavy to Arianespace’s Ariane 5 for the launch of its first wholly owned satellite in 2021.

In an interview Aug. 24, Ovzon CEO Magnus René told SpaceNews the company received a more appealing launch offer from Arianespace. “It’s nothing political or anything like that, it’s not that we don’t trust SpaceX — it’s just that we could get a better deal in cost and time and so on from Ariane at this time,” René said.

SpaceX charges $100 million for a Falcon Heavy launch, about the same as Arianespace charges for one of the two berths on its Ariane 5. Arianespace must have therefore cut its standard price to make it more attractive, and win the deal.

Ain’t competition wonderful? Governments have been trying (and failing) to get us into space for half a century, using the model of international cooperation. Introduce some competition and suddenly it becomes both easier and cheaper to do it. Who woulda thunk it?

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SpaceX and Arianespace complete successful launches

Today, as I was giving my lecture in Denver, both Arianespace and SpaceX successfully completed launches.

SpaceX put a commercial communications satellite in orbit. The first stage was not recovered, but this was intended. The company however was successful in catching one half fairing in the giant net of its recovery ship Mrs. Tree., the second time they have done so.

Arianespace used its Ariane 5 rocket to launch a commercial communications satellite and a European Space Agency data relay satellite.

The leaders in the 2019 launch race:

12 Russia
11 China
10 SpaceX
6 Europe (Arianespace)
4 India

The U.S. now leads Russia 16 to 12 in the national rankings.

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Arianespace Vega launch fails

The launch of a United Arab Emirates military satellite on an Arianespace Vega rocket failed tonight two minutes after liftoff.

Luce Fabreguettes, Arianespace’s executive vice president of missions, operations and purchasing, said the failure occurred around the time of ignition of the Vega rocket’s solid-fueled Zefiro 23 second stage.

“As you have seen, about two minutes after liftoff, around the Z23 (second stage) ignition, a major anomaly occurred, resulting in the loss of the mission,” Fabreguettes said. “On behalf of Arianespace, I wish to express our deepest apologies to our customers for the loss of their payload.”

Prior to this failure the Vega had flown fourteen times successfully since its inauguration in 2012.

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Ariane 6 gets OneWeb launch contract

Capitalism in space: Arianespace announced this week that it has signed a three-launch contract with OneWeb that will use its new Ariane 6 rocket, including the rocket’s maiden flight.

The launch service agreement specifies the use of the qualification launch of the Ariane 62 version, scheduled for the second half of 2020; the two Ariane 6 options (either in its 62 version, accommodating up to 36 OneWeb satellites, or in the 64 version, up to 78 OneWeb satellites) will be utilized starting in 2023.

The OneWeb satellites will be launched by the first Ariane 62 into a near-polar orbit at an altitude of 500 kilometers before raising themselves to their operational orbit.

Because OneWeb is in direct competition with SpaceX for building the first space-based internet satellite constellation, it has looked for other launch companies to put its satellites in orbit. Thus, the business to launch the company’s planned 650-plus satellite constellation has gone to Arianespace, Russia, Virgin Orbit, and others. This in turn appears to have saved Ariane 6, which is going to be more expensive than SpaceX’s rockets and was therefore having trouble getting launch contracts.

Isn’t competition wonderful? It looks like it is going to take us to the stars.

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Arianespace successfully launches first set of six OneWeb satellites

Capitalism in space: Using a Russian-built Soyuz rocket, Arianespace today successfully launched the first set of six OneWeb communications satellites.

This is the first of 21 Soyuz launches to put the entire OneWeb constellation into orbit. OneWeb also has launch contracts with Virgin Orbit’s LauncherOne.

The 2019 launch standings:

2 SpaceX
2 China
2 Europe (Arianespace)
1 ULA
1 Japan
1 India
1 Russia

It could be argued that this Soyuz launch should be placed under Russia. I place it under Europe because they are the one’s who signed the contract.

The U.S. now leads China and Europe 3-2 in the national rankings.

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Auditor condemns Ariane 6

Capitalism in space: France’s independent government auditor has issued a new report that badly slams Arianespace’s next generation rocket, Ariane 6, accusing its design as being too cautious and too expensive, thus guaranteeing it will fail to compete with the reusable rockets now in use as well as being developed in the U.S.

This is the scathing assessment of France’s independent state auditor in a report that picked apart the flawed economic model behind Ariane 6, the next generation of rocket-launchers set to start operating in 2020.

It made the point that Europeans, who have taken part in developing the launcher, went for a “cautious” approach and invested in the kind of controlled technology that potential clients in the continent had no faith in, even back in 2014. This means that Ariane 6 is stuck in the past and “risks not being competitive over the long term.” Its U.S. rivals are way ahead and already testing future disruptive technologies. [emphasis mine]

The highlighted text is proven by the apparent unwillingness of Arianespace’s European partners to sign contracts for Ariane 6.

This isn’t really news. See for example this February 13, 2018 report on Behind the Black. Or this one from September 2017, where ArianeGroup first outlined the prices they expected to charge for Ariane 6. Then, I predicted what France’s auditor has only now realized:

Will these prices be competitive in 2020s? I have my doubts. I estimate, based on news reports, that SpaceX is charging about $40 million today for a launch with a reused first stage, and $62 million for a launch with an entirely new rocket. Give them another five years of development and I expect those prices to drop significantly, especially as they shift to entirely reused first stages for almost every launch and begin to demonstrate a routine launch cadence of more than one launch per month.

This quote…explains how ArianeGroup really intends to stay alive in the launch market: “The price targets assume that European governments — the European Space Agency, the European Commission, Eumetsat and individual EU nations — agree to guarantee the equivalent of five Ariane 62 missions per year, plus at least two missions for the light-lift Vega rocket.”

In other words, ArianeGroup really doesn’t wish to compete for business. It wants to use government coercion to force European space agencies and businesses to buy its product. They might get that, but the long term result will be a weak European presence in space, as everyone else finds cheaper and more efficient ways to do things. [emphasis mine]

Based on recent stories, it seems that ArianeGroup has been unable to force European space agencies to buy Ariane 6. Thus, the rocket faces failure, before it even launches.

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