ESA awards Avio three contracts worth $372 million for its Vega rockets

Capitalism in space: The European Space Agency (ESA) yesterday awarded the Italian rocket company Avio three different contracts worth $372 million to further develop its Vega family of rockets.

The first two contracts subsidize work on upgrading the Vega-C launch site at the French Guiana spaceport as well as developing the company’s planned new rocket, Vega-E.

The third contract is more significant, because it signals the coming end of Arianespace, ESA’s commercial arm. Instead of going through that government-run agency — as ESA has done for a quarter century — ESA simply bought a Vega-C launch from Avio directly, the first time it has obtained launch services directly from a European company. The contract is to place in orbit an ESA climate research satellite.

The end of Arianespace was further signaled today by the announcement that Arianespace’s chief executive since 2013, Stephane Israel, is stepping down. It was Israel who in 2015 discouraged ESA from making Ariane-6 reusable. It was Israel who for years poo-pooed competition and free enterprise, lobbying continuously that ESA should do its launches through Arianespace exclusively.

Now, more than a decade later, ESA has finally rejected Israel’s arguments, and is eliminating the middle-man Arianespace entirely, purchasing launch contracts directly from the rocket companies while having its member nations as well as itself encourage the development of many private rocket companies across Europe.

ESA finally admits — sort of — that private enterprise can do it better

Stephane Israel, the architect of ESA's rocket failure
Stéphane Israël, the head of Arianespace and the
architect of its failure to compete in the field of rocketry.

Today there was a news report in which Stéphane Israël, the head of Arianespace, kind of admitted at last that the expendable design of Europe’s new Ariane-6 rocket was a mistake, and that it will take a decade more to fix it.

“When the decisions were made on Ariane 6, we did so with the technologies that were available to quickly introduce a new rocket,” said Israël, according to European Spaceflight.

He added that it will not be until the 2030s before Europe begins flying its own reuseable rocket.

Israël’s comments illustrate the head-in-the-sand approach he has exhibited now for decades. He claims the European Space Agency (ESA) chose to make Ariane-6 expandable so that it would be ready quickly, but its development has not been fast, and in fact is now more than three years behind schedule. When it finally begins flying operational it will have taken almost a decade to create it.

His comments also are his lame attempt to push back against a recent ESA report [pdf], issued in late March, that strongly rejected the decades-long model that ESA has used to build its rockets. Up until now and including the construction of Ariane-6, ESA designed and built its rockets, using Arianespace, headed by Israël, as its commercial arm. In other words, the government ran the show, much like NASA did for most of the half century following the 1960s space race. The result was slow development, and expensive rockets. Arianespace for example never made a profit in its decades-long existence, despite capturing half the commercial market in the 2000s and early 2010s.

The March ESA report rejected this model, and instead advocating copying what the U.S. has done for the past half decade by shifting ownership and design to the private sector, as advocated in my 2017 policy paper, Capitalism in space. To quote the ESA report:
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