Tag: Arianespace

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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According to the former CEO of Arianespace, now head of the French space agency, SpaceX’s Falcon 9 costs significantly less to launch than the Ariane 5

10:29 pm

According to the former CEO of Arianespace, now head of the French space agency, SpaceX’s Falcon 9 costs significantly less to launch than the Ariane 5.

How big is the difference? Jean-Yves Le Gall, who until mid-2013 was chief executive of Evry, France-based Arianespace and is now president of the French space agency, CNES, addressed the point in Feb. 25 testimony to the French Senate. According to Le Gall, launching a satellite on an Ariane 5 costs around 100 million euros ($137 million). After subtracting the amount of European Space Agency subsidies to Arianespace, the per-satellite cost drops to about $100 million, he said.

Hawthorne, Calif.-based SpaceX, he said, would charge $60 million to $70 million to launch the same satellite aboard the Falcon 9. In fact SpaceX has charged even less than that to its first few commercial customers.

It is for this reason that Arianespace is struggling to decide how to build its next generation rocket. They have find a way to do it cheaper, something that is very difficult for this multi-headed European conglomerate to do.

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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:
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