Tag: European Commission

Europe’s old aerospace industry struggles with the concept of competition

9:46 am

Made in European Union

Two stories today from Europe’s aerospace industry suggest that its older big space companies are having real difficulties dealing with the new space landscape of competition and freedom.

First, Arianespace and Avio issued a statement demanding that Europe require that all European launches occur on European rockets.

The statement warned that without “sustained support,” European rocket builders were at risk of losing out to institutionally backed competitors from the US. “Major space powers support their industries through stable and guaranteed institutional markets, enabling long-term investments, innovation, and the preservation of leadership,” explained the statement.

…The pair argue that Europe risks falling behind not due to a lack of technical capability, but because of structural market weaknesses. While Ariane 6 and Vega-C have demonstrated competitiveness and reliability, they caution that this progress is fragile in the absence of guaranteed long-term demand.

While a preference for European launch providers is clearly in the best interest of both Avio and Arianespace, the pair did reserve a slice for new entrants to the market. “Enshrining European preference as an untouchable principle would support not only Ariane and Vega, but also foster the development of emerging projects in the small launcher sector.” [emphasis mine]

The highlighted sentence reveals the true reasons behind this call against competition. » Read more

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PLD obtains a new loan, this time for $11.6 million

11:45 am

The Spanish rocket startup PLD yesterday announced it has obtained a new $11.6 million loan that it plans to use to build its launch facility at the French-owned French Guiana spaceport.

The loan was issued by the Spanish governmment finance agency COFIDES, which comes on top of an earlier $43.8 million Spanish government grant. In addition, the company has gotten a $2.4 million grant from the European Commission, as well as a $1.37 million grant from the European Space Agency.

The company has also obtained a loan of $34 million from banks in Spain.

All told, the company has raised about $164 million, more than $58 million came from government agencies, with another $34 million from loans.

For whatever reason, PLD has found favor with the various governments in Europe, fueling its work. None of the other European rocket startups from Germany or Great Britain have been as lucky.

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European Commission finally awards contract to build its government Starlink-type constellation

9:38 am

The European Commission yesterday finally awarded a gigantic contract to a consortium of European satellite companises to build its government-conceived and government-designed communications constellation designed to duplicate constellations already in orbit and built by Starlink and OneWeb.

The full constellation, dubbed IRIS2 and first proposed in 2022, is expected to have 290 satellites. The consortium, dubbed SpaceRISE, is led by satellite companies SES, Eutelsat, and Hispasat, and also includes Thales Alenia Space, OHB, Airbus Defence and Space, Telespazio, Deutsche Telekom, Orange, Hisdesat, and Thales SIX.

In other words, practically every major European aerospace company gets a piece of the pie.

According to a 31 October press release, the European Commission aims to have the IRIS2 service up and running by 2030. The project was initially expected to cost approximately €6 billion, of which the European Commission would provide 60%, with the rest being covered by private industry. However, recent reports have indicated that the project’s budget will likely reach as much as €10 billion.

Based on these numbers, it is going to take more than six years to launch, with each satellite costing about 3.5 million euros.

This is a very typical European government project, conceived not to fill a real need but to make sure there is a European version of something for Europe to use. It is also conceived as a way to transfer cash to as many European aerospace contractors as possible. Considering the number of companies involved and the fact that the whole constellation is government designed, expect the budget to well exceed ten billion euros before completion, and take far longer to become operational than presently planned. For example, the project was first proposed more than two years ago and only now has the contract been issued. In that time SpaceX conceived and has practically launched its entire direct-to-cell Starlink constellation of about the same number of satellites.

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SpaceX launches two more Galileo GPS-type satellites for Europe

12:43 am

SpaceX this afternoon successfully launched two Galileo GPS-type satellites for Europe, its Falcon 9 rocket lifting off from Cape Canaveral.

The first stage completed its 22nd flight, landing on a drone ship in the Atlantic. The fairings flew their for their 3rd and 8th times respectively. The launch was the second launch by SpaceX for Europe’s Galileo constellation. The European Commission was forced to award this multi-launch contract to SpaceX because Europe’s Ariane-6 rocket was four years behind schedule and not available when needed.

The leaders in the 2024 launch race:

92 SpaceX
38 China
11 Russia
10 Rocket Lab

American private enterprise now leads the rest of the world combined in successful launches 107 to 60, while SpaceX by itself still leads the entire world, including American companies, 92 to 75.

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European weather satellite company cancels launch contract with Ariane-6, switches to SpaceX

9:37 am

We now know the reason why an Arianespace official on June 26th demanded new legislation requiring all European payloads to launch on European rockets. Today it was revealed that the European weather satellite company Eumetsat has canceled a launch contract on an Ariane-6 rocket and instead switched to SpaceX’s Falcon 9.

Late yesterday, French news outlet Le Monde reported that the executive committee of Eumetsat, the European meteorological satellite agency, had asked the agency’s board of directors to cancel a contract it signed with Arianespace four years ago to launch its Meteosat MTG-S1 satellite. The mission would have been flown aboard the third Ariane 6 flight, which is expected to be launched in early 2025. The satellite will now be launched aboard a SpaceX Falcon 9 rocket.

Not surprisingly, another French official today — Philippe Baptiste, the head of France’s CNES space agency — once again demanded action to require European companies to use European rockets. In his whining however he revealed an amazing inability to understand why this decision was made.

“How far will we, Europeans, go in our naivety. … I am impatiently waiting to understand what reasons could have led Eumetsat to such a decision at a time [when] all major European space countries as well as the European Commission are calling for launching European satellites on European launchers.”

The reasons why are quite obvious, and if this guy can’t recognize them then there is little hope the European Ciommision will ever figure out how to compete. Not only is the cost for a Falcon 9 launch likely one third that of an Ariane-6, it is a proven launcher. Ariane-6, four years behind schedule, won’t make its first launch until July 9, 2024, assuming all goes as planned. Eumetsat officials probably decided they couldn’t afford the extra cost and risk.

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Europe signs up four rocket startups to provide it launch services

10:09 am

Capitalism in space: The European Space Agency (ESA) and the European Commission have jointly signed four rocket startups to contracts for eventually providing these government agencies a competitive commercial rocket industry capable of launching its payloads into space.

Each of the companies will receive a “frame” contract as part of the initiative, allowing them to compete for task orders for launching specific missions. Officials did not disclose the anticipated value of those contracts, or how many launch companies competed to participate in the program.

Four of the companies selected for the Flight Ticket Initiative are startups working on small launch vehicles: Isar Aerospace, Orbex, PLD Space and Rocket Factory Augsburg. None of them have yet conducted an orbital launch but expect to do so within the next two years.

Arianespace, ESA’s launch company that previously had a monopoly on launches, also received a frame contract, but it apparently must now compete for future contracts with these startups.

Europe had attempted to compete with SpaceX by once again using Arianespace and its big space contractors to build the Ariane-6 rocket. That project however is years behind schedule, and has resulted in an expendable rocket that is too expensive. Europe has thus been forced to buy launches from SpaceX.

This new arrangement essentialy means that Europe has adopted the recommendations I made in my 2017 policy paper, Capitalism in Space, available here [pdf]. Rather than design, build, and own its rockets, Europe will instead become a customer like anyone else, buying products developed and owned by private and competing European rocket companies.

Of the startup companies listed above, two (Isar and Rocket Factory) are German, one (Orbex) is British, and one is Spanish (PLD). Thus, this arrangement also spreads the wealth throughout Europe.

Unless outside events change things (such as war or economic collapse), this decision is likely to result in a renaissance in Europe’s launch industry comparable to what is happening now in the U.S. and India. If so, the future for the exploration and settlement of the solar system looks bright indeed.

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April 18, 2023 Quick space links

5:19 pm

Courtesy of BtB’s stringer Jay.

 

 

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ArianeGroup chosen by Europe to develop reusable rockets

9:47 am

The new colonial movement: The European Commission, which makes the major decisions for the European Space Agency, has chosen the European commercial company ArianeGroup to run two programs designed to produce that continent’s first reusable rocket.

From the press release [pdf]:

The SALTO project will facilitate the first flight tests of the Themis reusable stage demonstrator in Kiruna, Sweden. The ENLIGHTEN project will speed up the development and introduction of reusable engine technologies.

The main goal of SALTO will be to develop the kind of vertical landing technology that SpaceX now does routinely. ENLIGHTEN in turn will develop rocket engines using either methane or hydrogen as the fuel. The total budget allocated for both is just under 50 million euros, which seems quite small. The press release also made no mention of a schedule for accomplishing these tasks.

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European commission approves Airbus-Safran buy of Arianespace

9:22 am

The competition heats up: The bureaucrats in the European Union have given their approval to the purchase by Airbus-Safran Launchers of Arianespace, thereby clearing the way for the privatization of that ESA entity and the construction, under Airbus-Safran control, of Ariane 6.

Following an in-depth review, the European Commission has approved under the EU Merger Regulation, the acquisition of Arianespace by Airbus Safran Launchers (ASL), a joint venture between Airbus and Safran. This approval is subject to conditions. Commissioner Margrethe Vestager, in charge of competition policy, said: “A well-functioning satellite and launcher industry is important to guarantee that European companies and institutions can gain access to space at competitive terms. The commitments offered by ASL ensure that after its takeover of Arianespace, all players in the industry will continue to have incentives to innovate.”

The Commission had concerns that the transaction would give rise to flows of sensitive information between Airbus and Arianespace to the detriment of competing satellite manufacturers and launch service providers. The Commission’s approval is conditional on the implementation of the commitments offered by the companies to address these concerns.

I must say that, in reading this story, I understood far better why the United Kingdom voted to leave the European Union. Though this particular deal is certainly different and involves many important government issues, if every private business deal is subject to the numbing concerns of this commission, I myself would run screaming from them as fast as I could.

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