Tag: capitalism

ESA discovers the wonders of capitalism!

11:27 pm

Three stories today illustrate how competition is revolutionizing and energizing the European aerospace industry:

The first two stories are clearly examples of the new competition within the launch industry. The first describes the effort by ESA and Airbus-Safran, a partnership now dubbed ArianeGroup, to get the Ariane 6 rocket built fast and cheaply, under pressure as they are by SpaceX’s lower prices.

The manufacturing consortium is looking for a 40% cost reduction, at least, in the Ariane 6, compared with the Ariane 5. In part that is coming from exploiting new materials and new manufacturing techniques (3D printing, friction stir welding, augmented reality design, etc) and in part by maximising the common use of elements in both the 62 and 64 variants. Avio’s solid-fuelled booster is also the same as the first stage on the company’s Vega rocket, which launches much smaller satellites.

But a big cost saving will come from simply employing fewer people. “There is a transition from Ariane 5 to Ariane 6 (from 2020 to 2023), but from 2024, 2025 onwards – our workforce will be 30% less than today,” explained Hans Steininger, the boss of MT Aerospace, which is making the rocket’s huge metallic propellant tanks.

The second article describes how ESA is suddenly changing its reusable mini-shuttle program from a typical, staid, dead-end research project (where they do a series of test flights with no thought towards using what they learned) to a private mini-shuttle available for lease by researchers of all stripes.

By 2025, ESA officials said, Space Rider could be operating commercially, flying science payloads and bringing them back to Earth for roughly $9,200 per kilogram. Arianespace, the Evry, France-based launch services provider, would likely serve as Space Rider’s operator, offering industry and government customers the opportunity to fill the spaceplane 800-kilogram payload capacity with microgravity science, materials testing, telecommunications and robotics demonstrations.

Previously, the plan had been to test fly this spaceplane without selling its cargo capacity. Now they want to make money on it, right from the beginning.

The third article meanwhile illustrates that the old way of doing things is still a factor in Europe’s space effort. Europe’s Galileo GPS satellite network has been delayed badly by faulty atomic clocks. They are replacing them, and are preparing to resume launches. However, in ordering 8 new satellites they have also decided to keep OHB, the same contractor who provided the faulty atomic clocks, rather than give the contract to a competitor or at least split it between two contractors.

The contract, expected in late 2016, was delayed as the commission and the 22-nation European Space Agency (ESA) debated whether to maintain OHB as Galileo’s sole supplier or to award all or part of the contract to competitor Thales Alenia Space Italia.

In the event, the commission and ESA agreed that the savings realized from ordering recurrent-model spacecraft from OHB, and the schedule assurance this provided, outweighed arguments on behalf of dual sourcing. “Dual sourcing is always important but it needs to be weighed against other program requirements” including cost, said Paul Verhoef, ESA’s director of navigation. Verhoef said ESA and the commission may pursue dual sourcing for the next round of Galileo orders, when a new design will be used for the system’s second generation.

I suspect that as competition continues to prove its worth ESA will move to accept the idea of competition in the building of future GPS satellites. For right now, however, this change was more than this large government bureaucracy could handle.

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House lawmakers push Air Force to use reusable rockets

11:00 pm

Capitalism in space: House lawmakers today added an amendment to the Air Force budget that would require the military to “move rapidly to evaluate the potential use of reusable space launch vehicles such as those being flown by SpaceX.”

The amendment was approved by a voice vote in committee.

As noted by Eric Berger at the link, this marks an amazing shift by Congress in a very short time. A few years ago, SpaceX had to sue the government for the right to bid on Air Force launch contracts. At that time Congress was exceedingly skeptical of allowing military satellites to launch on new Falcon 9 rockets, no less ones using used first stages. Moreover, Congress was then eager to protect its big buddy ULA, which then had a monopoly on military launches and was making gobs of money per launch. Now, Congress is all for re-usability and saving money and competition.

This change demonstrates the importance of success. SpaceX has been successful, and with that success the nay-sayers have suddenly vanished. Now, everyone loves them, when only a few years ago they were considered risky and unreliable.

When SpaceX’s Falcon Heavy succeeds and flies several times prior to the first launch of SLS, watch for this same process to occur there as well. SLS will no longer be sacrosanct, and Congress will suddenly discover how much a waste of money it is.

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A congressman acts to limit competition in solid rocket motor production

9:08 am

We’re here to help you! Congressman Duncan Hunter (R-California) in March introduced a new bill that requires U.S. companies building solid rocket motors to purchase the oxidizer from within the U.S.

That oxidizer, ammonium perchlorate, is only available from one Utah company, a company that also happens to belong to a member of the Washington establishment.

Some in industry are arguing the legislation is an earmark to help a now struggling business — American Pacific, owned by the Huntsmans of Utah — with political ties to the Trump administration. Jon Huntsman, former two-time Republican presidential candidate, is tapped to be the next ambassador to Russia.

And if the legislation passes as part of the fiscal year National Defense Authorization Act, the business would be propped up, but potentially at the expense of a larger solid rocket motor industry and the U.S. government, sources interviewed by Defense News argued.

Essentially, this bill would give Jon Huntsman’s company a monopoly and would likely increase the cost of making solid rocket motors.

The article is very detailed. While on the surface it sure looks like a case of crony capitalism, it is a bit more complicated. Demand for ammonium perchlorate has dropped since the shuttle was retired, causing Huntsman’s company to struggle. While it could be argued that this bill is an effort to save this company as well as encourage new American companies to form, there are many factors described in the article that suggest this isn’t going to happen, including this tidbit:

The other factor is the price for [ammonium perchlorate] will improve naturally when the government has more demand in roughly six years when NASA’s Space Launch System kicks off in full and the nuclear missile fleet is refreshed, so a solution that is more temporary could be in order, several sources suggest.

Since it is doubtful SLS will ever “kick off in full,” it is unlikely that demand for solid rocket motor oxidizer will ever rise as predicted. A better solution would be for Congress to mind its own business and let the market function normally. There are other companies in Europe providing this oxidizer, and the competition would force Huntsman’s company (as well as other new American companies) to innovate to stay competitive.

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Iridium launches might use reused Falcon 9 first stages

9:31 am

Capitalism in space: Iridium is considering using Falcon 9 previously flown first stages for its later already contracted launches with SpaceX.

Iridium is launching 75 of its 81 second-generation Iridium Next satellites using eight Falcon 9 launches, the first of which took place Jan. 14. In a conference call with reporters June 19, Desch said Iridium’s original contract with SpaceX calls for new Falcon 9s for each mission, but if SpaceX can improve its launch schedule with pre-flown stages, Iridium would consider them for missions in 2018. “While we are currently flying first flown launches, I’m open to previously flown launches, particularly for the second half of our launch schedule,” said Desch.

Desch said there are three criterion by which Iridium would decide whether to use a pre-flown rocket: schedule, cost and reliability — of which schedule is the most important. “Would [pre-flown rockets] improve the current launch plan that I have with brand-new rockets that I’ve basically contracted for a number of years ago and have budgeted for and have paid for?” Desch asked. “That’s the first thing: will they improve my schedule, because schedule to me is very very important.”

I think this tells us that Iridium is waiting to see if this week’s launch of a Bulgarian satellite on a reused first stage is successful. The article also also notes that they are still negotiating over price for using “flight proven” first stages.

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Russia offers Soyuz capsule for tourist flights, even after it is replaced

9:23 am

Capitalism in space: The Russian company that makes the Soyuz capsule has announced that it intends to continue flying the capsule, even after the new Federation replacement capsule is operational.

“I think that the Soyuz has the right to continue its life. As long as there exists a space tourism market and this spacecraft enjoys confidence, this all should be used as essential components,” the CEO said. Energiya is also considering the possibility to upgrade the Soyuz for circumlunar missions. “If we manage to do it faster, we will have a chance to perfect important systems on it, that will be further used on the Federation,” Solntsev noted.

Energiya is now part of the Russian space agency Roscosmos and is controlled by the government. Thus, for it to do this will still require government approval. Will the Russian government allow the old capsule to exist when the new one begins flying? That would be a form of competition, something Russia hasn’t really encouraged since the fall of the Soviet Union. We shall see.

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Russia moves to capture the smallsat launch market

6:41 pm

Glavkosmos, a division in Roscosmos, Russia’s nationalized aerospace industry, is working to capture a large part of the new smallsat launch industry.

Glavkosmos, a subsidiary of Russian state space corporation Roscosmos, said June 14 that it will launch 72 small satellites as secondary payloads on the Soyuz-2.1a launch of the Kanopus-V-IK remote sensing satellite, scheduled for July 14 from the Baikonur Cosmodrome in Kazakhstan.

Vsevolod Kryukovskiy, launch program director at Glavkosmos, said in a June 19 interview that the smallsat customers for that launch come from the United States, Germany, Japan, Canada, Norway and Russia. He declined to identify specific customers, although he said they include both companies and universities. The spacecraft range in size from single-unit cubesats up to a 120-kilogram microsatellite. “We’ll do the most technically challenging cluster mission ever,” he said. The satellites will be deployed into three separate orbits, after which the rocket’s upper stage will perform a deorbit maneuver.

Kryukovskiy said Glavkosmos is also arranging the launch of secondary payloads on two Soyuz launches planned for December from the new Vostochny Cosmodrome in Russia’s Far East region. “We’ll have about 40 microsats that we’ll launch from Vostochny, and that will be the first international launch from this new Russian cosmodrome,” he said.

These numbers are in the same range as when India launched 103 smallsats on a single rocket, and suggest that Russia is trying to grab the market share that the new small rocket companies are aiming at.

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Arianespace gets another launch contract

6:36 pm

Capitalism in space: Arianespace has won new contracts for two launches of its Vega rocket.

More important however was this tidbit:

And, with another two flights to geostationary orbit booked for its Ariane 5 heavy lifter, the Arianespace orderbook now stands at €4.8 billion ($5.3 billion), with 53 launches for 28 customers: 18 using Ariane 5, 25 for the mid-weight Soyuz and 10 for Vega/Vega C.

Compare that manifest with Russia’s, which now only has 15 commercial launch contracts through 2023. Compare it also to SpaceX’s which lists about 30 commercial launches, excluding its NASA cargo and crew missions to ISS.

It would appear that Russia has so far been the big loser in the new competitive launch industry. This can of course change, especially if Russia fixes its production problems, becomes a reliable launch company, and offers competitive prices.

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British government to loosen regulations on space

9:34 am

The British government is about to propose new regulations on space to allow the operation of commercial spaceports while establishing a licensing system for the launch companies that will fly from those spaceports.

These new regulations are likely the legislation the government announced it was preparing back in February. I suspect they are, like other recent legislative proposals, trying to fit the square peg of private enterprise into the round hole of the Outer Space Treaty.

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New smallsat rocket company plans first flight of aerospike engine

9:09 am

ARCA Aerospace has announced that it will perform the first test flight reaching space of an aerospike rocket engine this coming August.

ARCA Space Corporation has announced the first test-launch of its Demonstrator 3 space vehicle at Spaceport America in August. This will mark the first space flight of an aerospike rocket engine. Aerospike rocket engines are described as significantly more fuel efficient than the current engines and could make launches attempting to bring satellite payloads to space more affordable. Demonstrator 3 will perform a suborbital space flight up to an altitude of 100 kilometers above the New Mexico desert.

Their goal is to build a rocket they have dubbed Haas 2CA for the smallsat industry.

There is an interesting video at the link from the company showing their engineers hand-building this first suborbital test rocket, which the company also says is the first of a weekly series leading up to the test launch. More information about the company can be found at their website. According to their schedule, they hope to make the first orbital flight in 2018, and begin commercial operations by the end of that year.

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The state of the global aerospace industry

9:33 am

A new European analysis of the global aerospace industry suggests it is both growing and changing significantly.

Several takeaways that indicate future trends.

  • The government space spending has been stable the past 5 years, there was a 2% drop in 2016
  • The number of nations spending money on space has grown significantly in the past decade, from 47 to 70
  • Spending is shifting from military to civilian efforts
  • Russia experienced a 25% cut in aerospace spending in 2016
  • China passed Russia in spending in 2016
  • U.S. government spending stabilized in 2016 after a 25% decline since 2010

A drop in government spending in space is not proof that the industry is shrinking. In fact, it might be a sign of robust growth, in that it is no longer necessary to depend on coerced tax dollars to finance space projects. Instead, it suggests that because there are increasing profits to be made in space, the government is being replaced by a vibrant private sector. It also suggests that the private sector is finding ways to do things cheaper, which is saving the government money and allowing it to lower its budgets.

The second bullet point above reinforces these conclusions. Even though overall government spending has been stable, more countries have entered the market. More is being done with the same amount of money, and these lower costs are allowing new players to participate. The last bullet point also supports these conclusions. Even though the report notes a significant drop in U.S. government spending on space since 2010, it is very clear to me that the industry has actually prospered in these same years, fueled by a growing private sector.

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