France and Germany in the European Space Agency are at loggerheads about the best way to compete in the launch market.

The competition heats up: France and Germany in the European Space Agency are in serious disagreement about whether to replace the Ariane 5 or upgrade it.

The French space agency, CNES, quietly backed by Europe’s Arianespace launch consortium, has argued that the current Ariane 5 heavy-lift vehicle has only a fragile hold on its current 50 percent commercial market share. Just as important, according to the French reasoning, is that the entire Ariane 5 system, including its ground infrastructure, is expensive to operate and likely to remain so. Because money is short in Europe, it would be preferable to move immediately to a next-generation vehicle that would carry payloads ranging from 2,500 kilograms to 6,000 kilograms — with an extension to 8,000 kilograms — into geostationary transfer orbit, one at a time. This modular vehicle ultimately would replace not only today’s Ariane 5, but also the Russian Soyuz rocket that is now operating from Europe’s Guiana Space Center in French Guiana.

Set against this reasoning are industrial policy issues raised by the German space agency, DLR, and by Astrium, which is Ariane 5’s prime contractor. They say Europe needs to complete development of an upgraded Ariane 5 — at a cost of about 1.4 billion euros ($1.8 billion) — before embarking on a decade-long development of an Ariane 6 whose cost and industrial work-share distribution are unknown. [emphasis mine]

It is very clear that ESA has recognized that once Falcon 9 becomes completely operational, it will be difficult to get anyone to buy tickets on the very expensive Ariane 5. From the article it appears the battle centers on the fact that the French realize this, while the Germans are willing to look the other way.

Three astronauts have safely returned to Earth from ISS.

Three astronauts have safely returned to Earth from ISS.

More important, the Russians have now delayed the next Soyuz manned launch to ISS for a week due to “some malfunctions [that] have appeared in one of the devices of the decent module.”

They also say the delay is to avoid a flight conflict with the next Dragon mission on October 15. This is interesting in that the last word we had from NASA was that the Dragon launch could occur as early as October 5.

Bigelow Aerospace has expanded its workforce as well doubled its factory space in response to the commercial contracts NASA recently awarded.

The competition heats up: Bigelow Aerospace has expanded its workforce as well doubled its factory space in response to the commercial contracts NASA recently awarded.

The company just opened a 185,000-square-foot addition, bringing its North Las Vegas plant up to about 350,000 square feet. It slashed its work force from 150 before the recession to 50 during the downturn; now, it’s looking to jump back up to 90 workers by Christmas. It’s hiring structural, mechanical and electrical engineers, as well as chemists, molecular biologists and workers who craft composite spacecraft parts.

Hat tip to Clark Lindsey at NewSpace Watch.

A failed fuel line in the upper stage has been pinpointed as the probably cause of the Russian Proton rocket failure on Tuesday.

A failed fuel line in the upper stage has been pinpointed as the probably cause of the Russian Proton rocket failure on Tuesday.

In related news, the Russian prime minister said today that he intends to name and shame the officials responsible for the rocket failure.

“I would like to hold a meeting on this next week. It will be prepared by the appropriate deputy prime minister and structures. They are tasked with reporting who should be punished and what to do next,” Medvedev told a government meeting in Moscow. He also said Russia’s space failures “could not be tolerated anymore.”

Do tell. With SpaceX’s cheaper prices looming over them, Russia’s government-owned commercial rocket business can’t afford rocket failures as well. If they don’t fix this soon, their business will evaporate, and Medvedev knows it.

Alan Boyle at NBC tonight reports that Boeing, SpaceX, and Sierra Nevada are the winning companies in the competition to provide human ferrying services to ISS.

Alan Boyle at NBC tonight reports that Boeing, SpaceX, and Sierra Nevada are the winning companies in the competition to provide human ferrying services to ISS, to be announced officially by NASA tomorrow.

The report does not provide dollar numbers. This Wall Street Journal story says that Boeing and SpaceX will be the prime contractors, which suggests that Sierra Nevada will be getting a smaller award.

The cost of launch

Two news items from NASA today:

What I find most interesting about these stories is the fees charged by the two companies. SpaceX will be paid $82 million for its one launch, while ULA will be paid $412 million for its three launches, or about $137 million per launch.
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ESA is revamping how it builds rockets in order to compete with SpaceX.

The competition heats up: ESA is revamping how it builds rockets in order to compete with SpaceX.

ESA officials have been spooked by Space Exploration Technologies Corp. (SpaceX) of Hawthorne, Calif., which has demonstrated its technical prowess with the launch of its Falcon 9 rocket and Dragon cargo vehicle to the international space station. SpaceX officials say one of the keys to its success is that Falcon 9 is built in one factory owned by SpaceX.

Read the whole thing. The way ESA builds the Ariane rocket requires too many participants (what we in the U.S. call pork), raising its cost. ESA is now abandoning that approach to cut costs and thus compete with SpaceX.

Russia’s Deputy Prime Minister said today that his country needs to expand its commercial space services and grab market share from the United States and Europe.

The competition heats up: Russia’s Deputy Prime Minister said today that his country needs to expand its commercial space services and grab market share from the United States and Europe.

I wonder if these comments stem from a realization that — because Russia’s Proton rocket, its main commercial space product, is twice as expensive as SpaceX’s Falcon 9 — Russia faces a significant loss of business if it does not adapt.

Clark Lindsey posted today this interesting cost comparison between the Falcon 9 and the Russian-built Proton rocket.

The cost of launch: Clark Lindsey posted today this interesting cost comparison between the Falcon 9 and the Russian-built Proton rocket.

The essence is this: The Proton rocket costs twice as much as the Falcon 9. If SpaceX can make a profit charging these low numbers, the launch industry is going to see a major shake out in the coming years.

Congressman Frank Wolf (R-Virginia) has backed down and modified the language he had inserted in the NASA budget bill that would have limited the number of commercial space companies NASA could subsidize.

Good news: Congressman Frank Wolf (R-Virginia) has backed down and modified the language he had inserted in the NASA budget bill that would have limited the number of commercial space companies NASA could subsidize.

From Clark Lindsey:

Rep. Frank Wolf (R-VA) , who is Chairman on the Commerce-Justice-Science subcommittee of the House Appropriations committee, put language into the recent House budget for NASA that requiree NASA to down-select immediately to one primary contractor in the commercial crew program. This would obviously eliminate competition on price and rule out redundancy in case one system is grounded. He has now relented and is willing to allow for “2.5 (two full and one partial) CCiCAP awards”.

As I wrote earlier, the success of Dragon is putting strong political pressure on Congress to support the independent commercial space companies over the NASA-built and very expensive Space Launch System (SLS) that Congress had mandated. Expect to see more elected officials back down in the coming year, with the eventually elimination of SLS from the budget.

Environmental activists have launched a petition drive to stop SpaceX from building a commercial spaceport in Brownsville, Texas.

The wrong side of history: Environmental activists have launched a petition drive to stop SpaceX from building a commercial spaceport near Brownsville, Texas.

“I love the space program as much, if not more, than anyone,” said Environment Texas Director Luke Metzger. “But launching big, loud, smelly rockets from the middle of a wildlife refuge will scare the heck out of every creature within miles and sprays noxious chemicals all over the place. It’s a terrible idea and SpaceX needs to find another place for their spaceport.”

This guy obviously doesn’t know that almost all of the Kennedy Space Center is a wildlife refuge, and a successful one at that. But then, what do facts have to do with most environmental causes?

From a past SpaceX critic: SpaceX’s Falcon Heavy could wipe its launch competition.

From a past SpaceX critic: SpaceX’s Falcon Heavy could wipe out its launch competition.

This announcement [of SpaceX’s deal with Intelsat] is an indication that SpaceX is now threatening the dominance of Arianespace and ILS in the commercial launch arena. If a Falcon 9 Heavy can carry two or more large GEO communications satellites for half the launch price of an Ariane 5 or Proton M booking, then this could spell the end of their commercial operations as going concerns. It is not only on the commercial front that SpaceX may dominate. SpaceX’s Falcon 9 Heavy launch service promises to be less than half the cost of using equivalent Atlas and Delta rockets. So even the cosy launch provider-governmental relationships that previously benefited the likes of Boeing, Lockheed Martin and Pratt and Whitney/Rocketdyne could now be threatened.

As much of a fan of SpaceX as I am, and as much as I agree with the above statement, we must remember that Falcon Heavy is not yet built. Moreover, I suspect that the deal with Intelsat does not yet include any transfer of funds. SpaceX has a long way to go before any of this happens. Nonetheless, the company’s continued success very obviously is beginning to make its competitors nervous.

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