Tag: Arianespace

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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SpaceX vs Arianespace, according to the TV industry

9:11 am

The heat of competition: A television industry trade journal looks at Arianespace’s future plans and finds them wanting, when compared to SpaceX.

Compare that [SpaceX’s] success with the money that’s been poured into Arianespace, and the lack of progress (perhaps wholly understandable when being managed by a Euro-committee!). Ariane’s mid-way ME version (for Midlife Extension) has been on the drawing board since 1995. And at a considerable investment, and for an initial scheduled flight of only 2017-2018.

The Ariane-62/64 concept calls for as much of the “ME” design to be incorporated into the 62/64 versions. But the planned launch of the first A-62 is not for some time; some observers suggest at best 2021-22. That’s more than 20 years of planning, development and immense costs.

Read the whole thing. It illustrates the almost impossible challenge faced by Arianespace — a company designed by a committee of nations and run to distribute funding as widely as possible to those nations. For that company to successfully reshape its approach quickly so that it can successfully compete with SpaceX seems quite unlikely, and will likely result in Arianespace evolving into Europe’s government launch service, with the commercial market shifting back to the U.S.

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Controversy surrounding IXV flight cancellation

9:24 am

Italian officials are suggesting politics or incompetence for the sudden cancellation Wednesday of the November test flight of Europe’s IXV experimental spaceplane.

ESA and CNES officials up to now have either declined to comment or, in the case of ESA, said they were at a loss to explain why a program whose mission profile has not changed in several years is now suddenly stalled for [range] safety issues that in principle should have been aired and resolved long ago.

One official, saying he could not believe that the two agencies simply forgot to evaluate the safety issues, said he preferred to suspect political motives. “Look, we are about to send a spacecraft and lander to Mars, in one year,” this official said. “Europe has rendezvoused with a comet a decade after the [Rosetta comet-chaser] satellite was launched. You want me to believe that somehow the agencies just forgot to evaluate safety? That is too far-fetched. I would rather believe there is some political motive.”

The claim is that no one ever evaluated the range issues in sending the Vega rocket to the east instead of its normal polar orbit trajectory. The Italian officials are suggesting that either the officials who cancelled the mission are incompetent, or that their competition with France within ESA over launch vehicles (Ariane 6 vs Vega) prompted the cancellation.

Europe’s lead launch-vehicle nation is France, which initially balked at participating in the Vega program. A French minister said that in Europe, launch vehicles are French. The French government declined to allow the export, to Italy, of the avionics suite that guides Vega, forcing Italy to develop its own. Italy has since done so and successfully flown it on Vega. As it stands now, one official said, France must accept the idea that with Vega, Italy has led development of a vehicle that at least in principle resembles an intercontinental ballistic missile. “Some people don’t like that,” this official said.

Either way, this cancellation combined with the difficult and extended disagreements within ESA over replacing Ariane 5 suggest that the future of this European partnership is becoming increasingly shaky.

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Independent Arianespace investigation cites design error as cause of Russian launch failure

8:36 am

A just released independent investigation by Arianespace of the Soyuz rocket launch failure that put two European Galileo GPS satellites in the wrong orbits has concluded that the design of the Fregat upper stage, not an assembly error, was at fault for the failure.

The upper stage was not oriented correctly because fuel lines to thrusters had become frozen.

The freezing resulted from the proximity of hydrazine and cold helium feed lines, these lines being connected by the same support structure, which acted as a thermal bridge. Ambiguities in the design documents allowed the installation of this type of thermal “bridge” between the two lines. In fact, such bridges have also been seen on other Fregat stages now under production at NPO Lavochkin. The design ambiguity is the result of not taking into account the relevant thermal transfers during the thermal analyses of the stage system design.

That the Russian investigation found that this arrangement of feed lines happened once in every four stages that were assembled still suggests sloppiness, if not in assembly then in design. The Arianespace investigation, though thorough, thus appears to me to be trying to provide cover for thier Russian partners here.

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More quality control problems in Russia

9:29 am

The investigation into the failure of a Russian Soyuz rocket to place two European Galileo GPS satellites into the correct orbit has found that it was caused by the faulty installation of fuel lines on the Fregat upper stage.

The failure was as simple as clamping together a cold helium line with the hydrazine fuel line, causing the hydrazine to freeze long enough to upset the Fregat stage’s orientation and cause the two satellites’ release into an orbit that is both too low and in the wrong inclination, officials said. One official said the Euro-Russian board of inquiry into the failure discovered that one in four Fregat upper stages at prime contractor Moscow-based NPO Lavochkin had the same faulty installation. ,,,,

Government and officials said the commission is debating how to proceed now that it knows that, as expected, the Fregat failure was not one of design, but of assembly and quality control. [emphasis mine]

In other words, 1 in 4 Fregat upper stations were routinely assembled improperly and no one noticed. The investigation also found that this assembly problem had existed on several past launches but because of the orbital requirements it had fortunately not caused any problems.

I want to emphasize that these kind of sloppy assembly issues have been occurring at a number of different Russian factories and different Russian companies. It seems to be systemic to the entire Russian aerospace industry, and it also appears to be getting worse.

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Europe struggles to contain costs on its next generation rocket

9:02 am

New budget estimates for replacing Arianespace’s Ariane 5 rocket now say that they will have to include the construction of an entirely new launchpad, raising costs.

Nonetheless, Europe is trying to keep its per launch cost down and competitive.

ESA and the Airbus-Safran joint venture that proposes to manage Ariane development also floated per-launch costs that were lower than previous estimates. The lighter-version Ariane 62, with two solid-rocket boosters, could be built for as little as 65 million euros assuming a nine-per-year launch rhythm, officials said. The heavier Ariane 64, intended mainly for the commercial market and capable of carrying two satellites weighing a combined 11,000 kilograms into geostationary transfer orbit, could be built for 85 million euros each, again assuming a nine-per-year production rate.

These numbers are tiny compared to what they have charged in the past, and though higher than SpaceX’s, are within a price range that will keep them in business, assuming they can achieve them.

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Europe’s satellite makers want Ariane 6

8:50 pm

Europe’s six biggest satellite makers have written Arianespace to demand that the company build its next generation Ariane 6 rocket by 2019 or face a significant loss of business.

Given the advent of electric propulsion and the dramatic launch-cost reduction offered by Space Exploration Technologies Corp., the operators say, the new Ariane 6 needs to be in service by 2019 or face the risk that Europe’s Arianespace launch consortium will be permanently sidelined. The letter was signed by six members of the European Satellite Operators Association. Signatories included the chief executives of Intelsat, SES, Eutelsat, Inmarsat, Hispasat and HellasSat.

This letter is clearly intended to help prod Arianespace into making a decision on whether to build a new rocket, Ariane 6, or upgrade Ariane 5. Right now the company’s partners have been unable to come to an agreement about what to do.

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Arianespace signs four new contracts

7:37 pm

The competition heats up: As a result of lowering its prices to compete with SpaceX, Arianespace on Monday announced four new launch contracts for lighter weight commercial satellites.

At a press briefing here during the World Satellite Business Week conference, organized by Euroconsult, Arianespace said the contracts illustrate the company’s ability to win business in head-to-head competition with what has become its principal competitor, Space Exploration Technologies Corp. and the Falcon 9 rocket. Individual satellite operators choose satellite and rocket suppliers using a range of criteria including schedule, price, recent launch record and export credit-agency financing.

It was not immediately clear how many of the latest satellite wins for Arianespace followed competitions in which SpaceX offered bids compatible with customer specifications and still lost.

These satellites will be launched in the lower berth of the Ariane 5 rocket, which launches two satellites with each launch. Thus, these contracts — while encouraging for Arianespace — still leave the company with the need to find customers to fill that upper berth.

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Indecision in Europe about their future commercial rocket

5:57 pm

The competition is burning them up! With Germany and France unable to come to an agreement about the next Arianespace commercial rocket, the company is considering cancelling a December conference that was supposed to settle the issue.

The basic division remains despite the German government’s alignment with the French view that Europe needs a lower-cost rocket to maintain its viability in the commercial market — which in turn provides European governments with a viable launch industry.

Despite the consensus over the longer term, the two sides remain split on whether European Space Agency governments should spend 1.2 billion euros ($1.6 billion) to complete work on a new upper stage for the existing Ariane 5 rocket, which could fly in 2018-2019, or abandon the upgrade to focus spending on a new Ariane 6 rocket, whose development would cost upwards of 3 billion euros over 7-8 years. [emphasis mine]

Though SpaceX is not mentioned in this particular article, numerous previous articles on this subject (such as this one) have made it very clear that it is SpaceX’s low prices that are driving the need for Arianespace to cut costs. The problem, as this article makes very clear, is that Arianespace’s partners can’t figure out how to do it, at least in a manner that will still provide them all an acceptable share in the pie. The result might be that the entire partnership falls apart.

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Soyuz puts two satellites in wrong orbit

5:55 pm

A Russian-made Soyuz rocket launched from French Guiana for Arianespace has placed two European Galileo GPS satellites into the wrong orbit.

Russianspaceweb suggests that the problem was caused by the rocket’s Russian Fregat upper stage. (Scroll down about halfway to read their report on this launch.)

Multiple independent sources analyzing the situation suggested that the Fregat upper stage had fired its engine for the right duration, however the stage’s orientation in space during the second or both maneuvers had probably been wrong. According to Jonathan McDowell, an astronomer at the Harvard-Smithsonian Center for Astrophysics and a veteran space historian, the Fregat’s angular orientation error during engine firing could reach as much as 145 degrees.

This failure is a triple whammy. It hits both Arianespace and Russia since the Soyuz was part of a partnership between the two. It also hits Europe’s Galileo GPS satellite, which after many years of development was beginning to move towards full operation.

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Arianespace and ESA sign contract for three launches

9:53 am

Arianespace and the European Space Agency (ESA) signed a contract on Thursday for the Ariane 5 rocket to launch 12 more of Europe’s Galileo GPS satellites on three launches.

This contract is a perfect example of European pork. Europe’s Galileo system might provide competition to the U.S. GPS and Russian Glonass systems, but I am not sure what additional capabilities it provides that will convince GPS users to switch to it. Instead, building it provides European jobs, while using the Ariane 5 rocket to launch it gives that increasingly uncompetitive rocket some work to do. In fact, this situation really reminds me of the U.S. launch market in the 1990s, when Boeing and Lockheed Martin decided that, rather than compete with Russia and ESA for the launch market, they instead decided to rely entirely on U.S. government contracts, since those contracts didn’t really demand that they reduce their costs significantly to compete.

Europe now appears to be heading down that same road.

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Russian Soyuz launches commercial satellites for Arianespace

9:01 am

The competition heats up: A Soyuz rocket successfully launched four communications satellites from French Guiana yesterday.

I know that I repeatedly pound Arianespace for its high costs and lack of profits, but anyone who thinks this European company, in partnership with the Russians, is going to let its competition grab its customers easily is in for a surprise. They are going to fight back, and have the resources to do it.

The battle is on! It should be a lot of fun to watch over the next decade.

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A streamlined Arianespace to build Ariane 6?

9:40 am

The competition heats up: The merged Airbus/Safran rocket division has surprised the European Space Agency with a proposed new design for Ariane 6.

The Airbus-Safran proposal, if carried to its logical end, would mean a single company building Ariane vehicles, with fewer subcontractors and much less government oversight. It would likely mean the end of the CNES launcher division as industry takes more control of Ariane design and operations.

In other words, the contractors who build the rockets for ESA want more power over that construction. They want less government oversight, and more ownership of the rocket they build.

Sounds like what’s happening in the U.S., doesn’t it? Giving ownership to the rocket builders means they not only have more flexibility and thus can be more efficient, it makes it easier for them to innovate in both construction and sales.

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Arianespace lowers its prices.

8:44 pm

The competition heats up: In an effort to compete with SpaceX, Arianespace has lowered the price it charges for launching smaller satellites on its Ariane 5 rocket.

According to Stephen Israel, the company’s CEO, the lower prices have already produced some contracts. However, the company has not been able to institute comparable cost savings in its operations, which means it

…will force the European launch supplier to ask European governments this year for a 16 percent increase in annual support payments. In its 2013 annual report, Evry, France-based Arianespace said it will ask European Space Agency governments in December to allocate 116 million euros ($158 million) per year for the period between 2015 and 2018 to enable Arianespace to reach financial break-even. That figure compares to the current allocation of about 100 million euros per year for 2013 and 2014 that ESA governments approved in late 2012.

I wonder if the company will get these additional subsidies. In the past there were complaints from the European partners about the inability of Arianespace to make a profit. For it to lose even more money now will not make people happy.

I think, however, that Israel recognizes this. He has been pushing the organization to streamline its operation. Whether he can succeed against Arianespace’s entrenched pork-laden structure remains the big question.

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In a speech in Singapore, the head of Arianespace said that the company urgently needs to overhaul its Ariane 5 rocket in order to meet tough competition from SpaceX and Russia’s Proton rocket.

8:50 am

Recognizing the competition: In a speech in Singapore, the head of Arianespace said that the company urgently needs to overhaul its Ariane 5 rocket in order to meet tough competition from SpaceX and Russia’s Proton rocket.

“We have a newcomer in America with SpaceX. Yes, competition is increasing, but when competition is increasing, we need to be more and more agile,” said Israel. While recognising that Arianespace was the market leader, “we have to ask ourselves one question: what should we do to remain the leader? Europe is very serious about launchers, and Europe will not give up when it comes to launchers.”

For Arianespace this speech is a very good thing, as it demonstrates again that Israel — and the company — are aware of the competitive challenge put forth by SpaceX and are not making believe it doesn’t exist.

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The competition heats up: European aerospace companies Airbus and Safran have signed an agreement to merge their rocket divisions.

8:24 am

The competition heats up: European aerospace companies Airbus and Safran have signed an agreement to merge their rocket divisions.

The companies said the joint-venture would combine Airbus Group’s launch systems with Safran’s propulsion systems, but hinted at broader integration of public and private activities in an effort to duplicate the success of planemaker Airbus. Europe’s Ariane 5 space launcher dominates the market for large commercial satellites but faces growing concerns over its future due to competition from Space Exploration Technologies (SpaceX), run by billionaire entrepreneur Elon Musk.

To respond to the threat, Airbus and Safran aim to lead a drive towards an integrated European launch firm drawing on the lessons of Airbus’s planemaking unit, which was spurred into turning itself from being a consortium into a single company by the merger of transatlantic rivals Boeing and McDonnell Douglas in 1997. [emphasis mine]

The article, like practically every other report about Europe’s space effort in the past two years, singles out the competitive threat being made to their market share by SpaceX. Increasingly, the price reductions being offered by Musk’s company combined with its repeated success in launching payloads into orbit is forcing Europe to cut its own costs and become more efficent, something they have not bothered to do in decades. As result access to space is about to get signigicantly cheaper.

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The European partnership building the new Ariane 6 rocket struggles to keep its costs down to compete with SpaceX.

1:01 pm

The competition heats up: The European partnership building the new Ariane 6 rocket struggles to keep its costs down to compete with SpaceX.

Ariane 5 has been a huge triumph, orbiting half of the world’s communications satellites and claiming 60% of the 2012 world market for geostationary launches. But while the rocket is extremely precise and reliable it is also hugely expensive, with a single-payload flight costing €150-200 million. However, even at that price Ariane 5 launches are understood to be loss-making for ESA’s launch operator, Arianespace. Its high cost in in large part blamed on its industrial organisation; while private-sector SpaceX has tailored the Falcon programme for low cost production, the Ariane 5 project is organised in part to satisfy the demands of European multi-national politics.

Speaking exclusively to Flight Daily News, ESA’s Stefano Bianchi, who heads the Vega programme and now spends much of his time dedicated to Ariane 6 development, stresses that the programme is on course as set out by ESA’s member states, and any major change of configuration would require ministerial agreement.

But, he says, he and his colleagues are confident they can bring Ariane 6 to fruition at the target launch cost of €70 million – a level that would match or even undercut SpaceX. [emphasis mine]

This story is in connection with the conflict between France and Germany about how to build Ariane 6. I have specifically highlighted the cost figures to illustrate once again the reality that everyone in the industry knows (except for one commenter on my webpage), that the cost of a SpaceX launch runs in the neighborhood of $60 to $100 million, one third to half the cost of Arianespace and significantly less than the cost of practically every other launch company.

Any company that realistically wants to compete with SpaceX has to be totally honest about these facts. Their customers are honest about them, for certain.

Update: The CEO of ULA admits that the real cost of its military launches averages about $225 million per launch.

He claims they can get the cost down to $100 million per launch, but only if the military makes a bulk buy of 50 launches from them, but even that barely competes with SpaceX’s accepted launch fees ranging from $75 to $100 million, per launch. No need to buy 50 rockets from SpaceX to get these prices.

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The battle between France and Germany on how to replace the Ariane 5 rocket continues.

9:13 am

The battle between France and Germany on how to replace the Ariane 5 rocket continues.

To save money and lower cost, France wants to build a rocket that mostly uses solid rocket motors. Germany however has a problem with this.

German government officials have said they will have difficulty supporting the current Ariane 6 design, which features four identical solid-fueled stages — two as strap-on boosters, and two as the vehicle’s first and second stages — topped by the cryogenic upper stage powered by the same restartable Vinci engine that is the main element of the proposed Ariane 5 upgrade. Germany, through its space agency, the German Aerospace Center, DLR, has said it would prefer a liquid-fueled first stage for Ariane 6 as such a stage could be built in Germany and thus assure a large German industrial role in the program. Without such a role, DLR has said, German support for Ariane 6 might not be forthcoming.

The story above says that France is willing to negotiate with Germany over this, but if they do, they guarantee that Ariane 6 will be a costly rocket to build, making it very unattractive to satellite customers.

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Arianespace today scrubbed the third launch of its new Vega rocket at T-minus 10 minutes due to a technical problem.

9:16 am

Arianespace today scrubbed the third launch of its new Vega rocket at T-minus 10 minutes due to a technical problem.

The reliability of Arianespace’s rockets has always been the company’s big selling point, so a launch scrub is very unusual for them. Then again, this is only the third launch of Vega, so we shouldn’t be surprised if they are still working out the kinks.

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Arianespace struggles to schedule its customers for launch.

8:22 am

Arianespace struggles to schedule its customers for launch.

The editorial describes the juggling act the company is often forced to perform organizing the duel payloads required by the Ariane 5, with the launch of some customers’ satellites delayed because of the late arrival of other customers. From this information it is clear that the competition coming from SpaceX is not limited only to price. Arianespace’s requirement on Ariane 5 that there be two satellites means that sometimes they have to do harm to one of their customers by delaying their launch, even if that customer delivered on time. I can imagine some of those customers quite willing to go elsewhere should this happen too often.

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European satellite operators are pressing Arianespace to find ways to immediately reduce the cost of launching satellites on now Ariane 5 and in the future on Ariane 6.

4:28 pm

European satellite operators are pressing Arianespace to find ways to immediately reduce the cost of launching satellites on now Ariane 5 and in the future on Ariane 6.

And why are they doing this? To quote them:

“What is sure is that Europe deserves and requires a [reorganized launcher sector] ahead of 2019, the letter says. “[C]onsiderable efforts to restore competitiveness in price of the existing European launcher need to be undertaken if Europe is [to] maintain its market situation.

“In the short term, a more favorable pricing policy for the small satellites currently being targeted by SpaceX seems indispensable to keeping the Ariane launch manifest strong and well-populated.” [emphasis mine]

It seems that they take very seriously the competitive challenge being presented by SpaceX.

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