Tag: competition

Arianespace successfully launches Morocco’s first reconnaissance satellite

9:05 am

Capitalism in space: Morocco’s first reconnaissance satellite, built in France, was successfully launched into orbit last night by Arianespace’s Vega rocket.

This was Arianespace’s tenth launch in 2017, one more than its total for 2016 With one more launch scheduled, it appears the company will achieve close to its desired launch rate of one launch per month, despite labor problems in the spring that shut it down for almost two months.

Increasingly, Arianespace’s business (or ArianeGroup, depending on the rocket) seems restricted to European satellites. Its market share of American satellites is more and more being taken by American companies. This doesn’t appear to be reducing the company’s overall launch rate, however, proving once again that competition is not a zero sum game. Introduce it, and instead of the players fighting over a never changing pie of business, the pie grows so that everyone is doing more.

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Bezos sells another $1 billion in Amazon stock to fund Blue Origin

9:33 am

Capitalism in space: Repeating a stock sale he did in May, Jeff Bezos this week sold another million shares of his Amazon stock to raise another $1.1 billion in cash to finance his Blue Origin rocket company.

The stock sale reduced his holdings in Amazon by 1.3% to 16.4% total.

With this much cash available, Bezos has the luxury of developing and building his business with no help from the government and completely free to do whatever he wants. This freedom puts him in a very enviable position.

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Tesla stock crashes due to possible loss of tax credit

10:13 am

The stock of Elon Musk’s Tesla electric car company crashed this week, dropping 7% on Wednesday, with the revelation that the Republican tax plan proposes eliminating the $7,500 tax credit for buying an electric car.

Its share price fell more than seven per cent to about $296 apiece from Wednesday’s $321. The draft law emerged as the Elon-Musk-led automaker announced its worst-ever quarter, recording a $671m loss and admitting it had not met its production target for its new Model 3 car, producing just 220 of them against its 1,500 target.

Economists believe that the tax credit is a key driver for electric car sales, and cite the example of when the state of Georgia cut its $5,000 tax credit and saw sales of electric cars slump from 1,400 a month to just 100 a month in response.

What this story highlights is that electric cars are simply not economical at this time, and that the government is distorting the market by pushing them. Without government aid, practically no one would buy them.

It would be far better for everyone to let the market decide. Not only would this save us tax dollars, it would allow the industry to focus its innovative efforts on upgrades that are cost effective and profitable, rather than on pie-in-the-sky fantasies that actually do no good at all.

Hat tip Wayne DeVette for pointing me to this story.

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Builders of Ghana’s first satellite push for government help

9:36 am

The new colonial movement: The student engineers who built Ghana’s first satellite, GhanaSat-1 and launched in July, are pushing their government to establish the legal framework for future space activities in that country.

Student engineers behind the successful launch of Ghana’s first satellite into orbit have appealed to the government to set up a multi-stakeholder committee to come up with an act, the Ghana outer space act, a key requirement that would enable the country to ratify and sign the United Nations Outer Space Treaty.

They said if the country signed and ratified the treaty, it would give investors the signal and confidence that the country was ready for them to come and establish space science facilities.

The description in the article of what these students want suggests they do not quite understand the ramifications of all the UN space treaties, because it appears they also want Ghana to become signatories to them all. This would be a big mistake. While every country that launches satellites is a signatory to the Outer Space Treaty, very few have signed the Moon Treaty, as its language puts far more serious restrictions on property rights.

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Local tribe signs deal for Australian spaceport

9:05 am

Capitalism in space: An aboriginal tribe tribe in Australia has signed a lease with a new space company proposing to build a spaceport on their land where smallsat rockets can launch.

The Northern Land Council has granted a 275-hectare lease in northeast Arnhem Land to the Gumatj clan for use as a commercial rocket launching facility. That’ll pave the way for Gumatj Aboriginal Corporation to sublease the site to Equatorial Launch Australia, a firm whose $236 million space base proposal is being considered by federal and NT infrastructure funds.

The 12-year lease has an option for a 28-year extension, and is expected to be finalised later this month.

This is the first I have ever heard of Equatorial Launch Australia. Their website provides little information. Further web searches revealed little as well. My impression is that it is focused on creating a spaceport for the use of new Australian smallsat rocket companies. Whether it plans to launch its own rocket is unclear.

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SpaceX aims for December 29 launch of Falcon Heavy

5:58 pm

Capitalism in space: SpaceX has set a date for the first Falcon Heavy launch as no earlier than December 29.

They hope to be able to do a number of dress rehearsal countdowns prior to actual launch, which is what makes this schedule somewhat tentative.

While SpaceX has ample experience lighting all nine engines of the Falcon 9 simultaneously, with every Falcon 9 going through a full duration hot fire at McGregor followed by a static fire on the launch pad before all nine engines are lit a third time for launch, no company in the U.S. rocket industry has experience lighting 27 engines at the same time.

While each of the three Falcon Heavy debut cores – two flight-proven cores for the side-mounted boosters (boosters B1023 and B1025) and a new core for the central core (booster B1033) – have undergone hot fire testing at McGregor, they were all fired separately because the Texas test site is not built to accommodate three cores at the same time.

This means SpaceX will not gain a full understanding of how all 27 engines light until the more-crucial-than-usual static fire at LC-39A at Kennedy.

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NASA wants private company to take over Spitzer Space Telescope

6:00 pm

NASA has issued a request for proposals from private companies or organizations to take over the operation of the Spitzer Space Telescope after 2019.

NASA’s current plans call for operating Spitzer through March of 2019 to perform preparatory observations for the James Webb Space Telescope. That schedule was based on plans for a fall 2018 launch of JWST, which has since been delayed to the spring of 2019. Under that plan, NASA would close out the Spitzer mission by fiscal year 2020. That plan was intended to save NASA the cost of running Spitzer, which is currently $14 million a year. The spacecraft itself, though, remains in good condition and could operating well beyond NASA’s current plan.

“The observatory and the IRAC instrument are in excellent health. We don’t have really any issues with the hardware,” said Lisa Storrie-Lombardi, Spitzer project manager, in a presentation to the committee Oct. 18. IRAC is the Infrared Array Camera, an instrument that continues operations at its two shortest wavelengths long after the spacecraft exhausted the supply of liquid helium coolant.

The spacecraft’s only consumable is nitrogen gas used for the spacecraft’s thrusters, and Storrie-Lombardi said the spacecraft still had half its supply of nitrogen 14 years after launch.

The way a private organization could make money on this is to charge astronomers and research projects for observation time. This could work, since there is usually a greater demand for research time than available observatories.

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Minotaur-C successfully launches 10 commercial smallsats

5:51 pm

Capitalism in space: Orbital ATK’s Minotaur-C rocket today successfully launched 10 commercial smallsats.

It appears that they have upgraded the accused Taurus rocket in renaming it Minotaur-C.

After Orbital ATK suffered a series of launch failures with the Taurus rockets — which led to the loss of NASA’s Orbiting Carbon Observatory as well as its Glory climate-monitoring satellite — the company redesigned the Taurus. The new and improved rocket uses newer and more reliable technologies that Orbital ATK had built for its other Minotaur rockets.

This success is a very good thing for Orbital ATK, as the rocket likely gives them a strong position in the emerging smallsat market.

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SpaceX completes installation of two antenna dishes in Boca Chica spaceport

8:40 am

Capitalism in space: SpaceX has completed the installation of two ground station antenna dishes in its Boca Chica spaceport that will be used to facilitate communications with its manned Dragon missions.

A SpaceX spokesman said the antennas will also be used to track flights from Boca Chica once they’re underway. The company acquired the 86-ton antennas from NASA’s Kennedy Space Center at Cape Canaveral and transported them to Boca Chica via semitrailer. The first antenna was installed this summer.

The article also implies that SpaceX plans to eventually launch manned missions from Boca Chica.

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Satellite data business to grow to $8.5 billion by 2026

8:35 am

Capitalism in space: An industry analysis says that the satellite data market should grow to $8.5 billion by 2026, with the potential to reach $15 billion.

Euroconsult has identified approximately 20 companies that have announced intentions to develop lower-cost constellations to collect data at a high rate of revisit based on smallsat and cubesat technologies. As of 2017, these new operators have attracted more than U.S.$600 million in venture capital to fund their initiatives. None of the newly announced initiatives have yet reached full capacity; for these constellations to come to fruition, additional investments will be required.

Competition is expected to be fierce on the supply side, as companies must differentiate themselves in the marketplace and bring innovative solutions to maintain market share. Consolidation (such as MDA and DigitalGlobe, OmniEarth and EagleView, Terra Bella and Planet) could linger as companies refine business models and continue to seek investments. DigitalGlobe, for example, is aiming to add a lower-cost satellite constellation (Legion) to its portfolio to counter the probable impact of low-priced solutions entering the market. Airbus will also develop its own very high resolution (VHR) optical system, given that the next generation French defence system will not be commercialized.

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Orbital ATK to launch first Minotaur-C in six and a half years

8:25 am

Capitalism in space: Orbital ATK will try today to successfully launch its renamed Taurus rocket, six and a half years after its previous two launches had ended in failure.

The rocket is now called Minotaur-C and will attempt to launch ten Planet Lab smallsats. As Taurus, the rocket failed 3 times out of 9 launches, and from what I could tell watching the launch industry, was basically a dead product. I am now astonished that it is coming back to life. Apparently, Planet Lab got a good launch price, and can take the risk since its smallsats represent a relatively small investment and can be replaced much more easily than the two research satellites (Orbiting Carbon Laboratory and Glory) that NASA lost in the rocket’s previous two launches more than half a decade ago.

The article outlines nicely the history of this rocket, and how its failures significantly set back the growth of Orbital ATK. Hopefully, it will succeed now, and provide the U.S. another player in the increasingly competitive global launch market.

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Saudi Arabia gives robot citizenship

10:36 am

As part of a publicity stunt to encourage investment, Saudi Arabia has given citizenship to a new robot, designed to show human emotions by facial expressions.

A humanoid robot took the stage at the Future Investment Initiative yesterday and had an amusing exchange with the host to the delight of hundreds of delegates. Smartphones were held aloft as Sophia, a robot designed by Hong Kong company Hanson Robotics, gave a presentation that demonstrated her capacity for human expression.

Sophia made global headlines when she was granted Saudi citizenship, making the kingdom the first country in the world to offer its citizenship to a robot.

Below the fold I have embedded the video of Sophia’s conversation with the host. It is obvious that most of the conversation was scripted. It is also obvious that robots still have a long way to go before their facial expressions appear natural to the human eye.

Posted north of Phoenix as we climb up onto the Colorado Plateau. Just saw the last saguaro in the cacti’s northern range limits.
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Chinese company gives live turtle a high altitude balloon flight

9:00 am

Capitalism in space: Chinese company has successful given a live turtle a high altitude balloon flight as prep for future tourism flights.

The news article is somewhat humorous in claiming the following:

Shenzhen-based Kuang-Chi Group said it blasted the yellow-headed turtle, nicknamed “Little Cloud”, to an altitude of 21,000 metres inside a helium-filled craft. The launch took place from western China’s Xinjiang region at about 4am on Wednesday morning.

The craft landed safely at about 8.28am the same day, and the turtle was said to have survived the trip.

The company said it was the first time a live animal had been safely taken into near space, and that the trip paved the way for it to sell commercial flights to humans by 2018 or 2019. [emphasis mine]

The company’s claim, highlighted above, is so incredibly not true it raises questions about their whole story. Humans have been taken by balloon to these elevations several times. This might be a poor translation, but then it indicates some incompetence by the reporter.

Either way, this company is aiming for the high altitude tourism market that World View in Tucson had initially been focusing on, but now seems to have abandoned.

Posted as we slog our way through Phoenix traffic.

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SpaceX to resume launches at second launchpad in December

8:18 am

Capitalism in space: SpaceX plans to resume launches in December at its second Kennedy launchpad that was damaged in the September 2016 explosion.

This means that after the mid-November launch of Northrop Grumman’s Zuma payload, they will begin the reconfiguration of that launchpad for Falcon Heavy. Initially the company had said it would take two months to complete that work, which would push the first Falcon Heavy launch into 2018. More recently they say they can get the work done in six weeks. Either way, this suggests that the first attempt to launch Falcon Heavy around the first of the year.

Posted on the road from Tucson to the Grand Canyon. This weekend I am running a new cave survey project there, and we are hiking down this afternoon, with the plan to hike out on Monday.]

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Saudi Arabia to invest $1 billion in Virgin Galactic and Virgin Orbit

9:05 am

Capitalism in space: Saudi Arabia and Virgin have signed a non-binding agreement for Saudi Arabia to invest $1 billion in Virgin Galactic and Virgin Orbit.

I’m not sure what to make of this press release. The agreement is clearly called “non-binding,” which means Saudi Arabia is not obliged to provide any funds. At the same time, the deal appears to shift power and control of the two Virgin companies to the Arab country, which if successful (a big “if”) would also quickly give Saudi Arabia both a manned and smallsat launching capability.

Why they chose Virgin appears at first baffling, considering that company’s repeated inability to achieve any of its promises. It could be, however, that Richard Branson’s funds are drying up, and that he needed this deal to keep both companies afloat. Saudi Arabia thus saw an opportunity and grabbed it.

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Boeing’s Starliner undergoing drop tests

8:53 am

Capitalism in space: Boeing’s Starliner manned capsule yesterday successfully completed the 11th of 14 drop tests in preparation for launch.

The article includes extensive comments by two NASA astronauts who are working with Boeing on these drop tests. I found this quote interesting:

[Sunita] Williams and [Eric] Boe said there are benefits and drawbacks to either type of landing, but they preferred land over water. Williams speaks from experience: She has already made a land landing aboard a Russian Soyuz capsule. “When you land on land, maybe it’s a little bit harder,” Williams said. “But when you’re coming down at high speed, the water’s hard, too.

“Landing on water, if somebody’s right there to rescue you and they know exactly where you’re coming down, that works. And we’ve shown that works with the Apollo program. But, landing on water — I’m a Navy guy, there’s a big ocean out there and it’s a little space capsule and there’s some definite risks to that, too.

“Landing on the Soyuz, you open the hatch, you smell the grass, you’re not in a huge rush to get out or stay in. You know you’re in a solid place and you know you can take your time getting out and the rescue forces will be there eventually, if they’re not there knocking on the door.”

The article also noted that Boeing plans to refurbish each capsule and reuse it up to ten times.

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Lockheed Martin earnings down due to its commercial space divisions

9:00 am

Capitalism in space: Lockheed Martin’s third quarter earnings were down by one percent, partly due to reduced earnings in its commercial space divisions.

While other factors contributed to the drop in earnings, this quote highlights an important detail about the competition in the launch industry:

Reduced profits from Centennial-based rocketmaker United Launch Alliance caused some of LMSS’ decline, the company said. ULA is a joint venture of Lockheed Martin and Boeing Co. LMSS’ share of ULA’s launch-business profits dropped by $20 million to $45 million in the third quarter, the company said.

ULA’s profits dropped by one-third, which suggests that they are continuing to lose business to SpaceX because of its lower launch prices.

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NanoRacks successfully deploys its largest commercial smallsat from ISS

9:24 pm

Capitalism in space: NanoRacks today successfully deployed its largest commercial smallsat yet from ISS.

NanoRacks Kaber Deployment Program allows for a larger EXPRESS class of satellites to be deployed from the International Space Station, up to 100 kilograms. NanoRacks deploys these Kaber-class satellites currently through the Japanese Experiment Module Airlock, and will shift deployments to the NanoRacks Airlock Module when the Company’s commercial Airlock becomes operational (planned for 2019).

The key here is that NanoRacks is making money providing launch services to smallsats in partnership with ISS and others. They act as the go-between between the smallsat companies and the NASA bureaucracy, thus earning money by simplifying NASA’s generally Byzantine approval and launch process for private satellite companies.

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Vector’s third suborbital test flight set for January 2018

8:27 am

Capitalism in space: The third suborbital test flight of Vector’s Vector-R rocket has been scheduled for January 2018 in Mohave.

Vector has, to date, performed two test flights of the Vector, both only to very low altitudes. The first took place in May in California’s Mojave Desert and the second in August at the future site of Spaceport Camden on Georgia’s Atlantic coast. A third test, [company head Jim] Cantrell said, is planned for January, back in the Mojave Desert.

He raised a note of caution about that test. “We have a high chance of planting that one in the desert, because it’s using thrust vector control. We’re taking the training wheels off,” he said.

The article is mostly about Vector’s deal to launch from Wallops Island, which I noted last week. Much of that however is public relations that is far from reality. The important thing now is for Vector to finish its test program and prove its rocket can reach orbit.

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SpaceX barge damaged from fire after 1st stage landing

8:22 am

The drone barge used by SpaceX to successfully land a 1st stage during its October 11 launch was subsequently damaged by a fire on board during the return to port.

The exact series of events is unclear, but it is understood the booster leaked some of its residue RP-1 fuel, which flowed along the deck of the ASDS and pooled near the containers at the aft of the drone ship.

The booster then continued post-landing operations, designed to safe the booster ahead of crews boarding the ship to complete the safing process ahead of the trip back to port. At some point shortly after landing there was an ignition of the pooled RP-1, likely via the purging of the Triethylaluminum-Triethylborane (TEA-TEB) that is used as the first stage ignitor. This has to be purged as part of the safing procedures for allowing crew near the rocket. Fire hoses – staged on the deck of the ship – quickly doused the fire. However, the garage containing the robot – nicknamed “Roomba” or “OctaGrabber” (among other names) – was caught in the fire and damaged.

This was confirmed by the lack of the robot in view under the rocket during the ASDS’ return to Port.

It appears they are repairing the damages and that future barge landings will not be affected.

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Vector signs deal to launch from Wallops

8:37 am

Capitalism in space: Vector has signed an agreement with the Mid-Atlantic Regional Spaceport on Wallops Island, Virginia to do commercial launches of its smallsat rocket there.

Vector Space Systems officials and Virginia Secretary of Transportation Aubrey Layne announced during a demonstration of the Vector-R launch vehicle at Launch Pad 0-B on Wallops Island that Vector has contracted to conduct three commercial orbital missions in the next two years from the Wallops spaceport, with an option for five additional launches.

Vector still needs to complete its test program, as its Vector-R rocket has not yet reached orbit.

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Blue Origin successfully completes first test of BE-4 rocket engine

5:22 pm

Capitalism in space: Blue Origin has successfully conducted the first static fire test of its BE-4 rocket engine.

The test was six seconds long. The company has not released any further details, other than to say it was a success. This not only puts them closer to building their New Glenn rocket, it increases the chances that ULA will choose this engine for its Vulcan rocket.

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Iridium switches two upcoming launches to reused Falcon 9 first stages

9:35 am

Capitalism in space: Iridium has revised its launch agreements for two upcoming launches using the Falcon 9 rocket to have both use previously flown first stages.

While the article provides a lot of good background on SpaceX’s increasing sales of reused first stages, including the fact that 20% of SpaceX’s launches this year might end up using re-used first stages, an amazing number consider this is also the first year they are doing so, this quote from the article however is even more astonishing:

Importantly for Iridium, and for the launch market as a whole, Iridium revealed in its announcement that the cost of insuring the Iridium NEXT-4 and -5 missions did not change with the switch to flight-proven boosters. “Iridium confirmed with its insurers that there is no increase in premium for the launch program as a result of the use of flight-proven Falcon 9 rockets, further supporting Iridium’s conclusion that the risk profile is unchanged,” noted the release.

Overall, this is an excellent sign that the all-important insurance market element of spaceflight continues to see no increased risk with launching atop flight-proven boosters.

One of my sources close to SpaceX says that the company will likely not fly these reused first stages intact more than twice, but will still salvage the engines for additional reuses. Considering the engines are the most expensive component, this makes great sense. Even if SpaceX doesn’t fly a first stage intact, it has developed an efficient and effective method for recovering the engines for reuse.

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UK health system considers banning surgery for smokers and the obese

9:29 am

Coming to a single-payer plan near you! Great Britain’s nationalized health system has proposed banning surgeries for anyone who smokes or is overweight.

In recent years, a number of areas have introduced delays for such patients – with some told operations will be put back for months, during which time they are expected to try to lose weight or stop smoking.

But the new rules, drawn up by clinical commissioning groups (CCGs) in Hertfordshire, say that obese patients “will not get non-urgent surgery until they reduce their weight” at all, unless the circumstances are exceptional. The criteria also mean smokers will only be referred for operations if they have stopped smoking for at least eight weeks, with such patients breathalysed before referral.

East and North Hertfordshire CCG and Herts Valleys said the plans aimed to encourage people “to take more responsibility for their own health and wellbeing, wherever possible, freeing up limited NHS resources for priority treatment”. Both are in financial difficulty, and between them seeking to save £68m during this financial year. [emphasis mine]

This is what happens when you centralize control of an industry into the hands of government. Rather than compete and find ways to better serve their customers while saving money, as the competitive private market does, a centralized top-down government operation rations services so that fewer people can get them.

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Higher insurance rates for Proton threaten its market viability

8:58 am

Capitalism in space: Because the insurance industry is presently charging significantly more to insure a Proton launch than it charges for Falcon 9 or Ariane 5, the Russian share of the launch market is threatened.

Insurance premiums for launches of International Launch Services’ Russian Proton rocket, which satellite operators and insurers say is a necessary third leg for the commercial market — the SpaceX Falcon 9 and the ArianeGroup Ariane 5 being the other two — total about 12% of the insured value. That compares with 3-4% for Ariane 5 and 4-5% for the Falcon 9.

In dollar terms, that means that ILS customers seeking a $200 million policy covering the the value of the satellite, the launch and the satellite’s first year in orbit, would pay a $24 million premium. The same customer launching the same satellite on Falcon 9 or the Ariane 5 would pay no more than $10 million, and possibly less.

The industry cites the quality control problems experienced by the entire Russian space industry, and Proton in particular, in the past decade for this differential. They say they expect these rates to fall if Proton continues its string of successful launches, now totaling 12 in a row.

The article also includes an interesting interview with Kirk Pysher, the head of International Launch Services (ILS), which handles the commercial launches of Proton for Russia. He mentions the possibility that Russia will self-insure so private customers will no longer have bear the cost of these higher rates, thus making ILS more competitive with SpaceX and ArianeGroup.

I think there is another unstated reason why the insurance company is charging more. In the past five years Russia consolidated its entire aerospace industry into a single corporation, Roscosmos, run by the government. I suspect that insurers do not trust this set-up for being the best vehicle for achieving efficiency and good quality control, and that is why they are still taking a wait-and-see attitude on whether Russia has gotten a handle on the quality control issues that caused so many failures in recent years.

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