SpaceX competitor Arianespace criticized for lackluster response to Falcon 9’s success

Ariane 5, Ariane 6, and Falcon 9. (Arianespace/SpaceX)

Best known for the commercial success of its Ariane 5 workhorse rocket, European aerospace cooperative Arianespace was heavily critiqued in the latest annual report from France’s Cour des comptes (Court of Auditors) for what is perceived as an unsustainable and overly cautious response to the swift rise of SpaceX’s affordable and reusable Falcon 9 rocket.

First spotted and discussed by Ars Technica’s Eric Berger, the French auditor’s 2019 report featured a full volume – 1 of 30 – dedicated to Ariane 6, a prospective next-gen Arianespace rocket selected for development by the EU in 2014. Despite the fact that Ariane 6 is at least a full year away from its first launch, Cour des comptes is already questioning the rocket’s ability to successfully make headway into an increasingly competitive market, competition that has already had a direct and tangible impact on Arianespace’s Ariane 5 launch vehicle.

Coasting on the race track

Of course, neither of those prerequisites to Ariane 6’s success occurred. SpaceX successfully reused the same Falcon 9 booster three times in just six months by the end of 2018, while Falcon Heavy is set to attempt its first two operational launches just a few months from now. Ariane 6 is still targeting a launch debut no earlier than (NET) 2020, while a handful of extremely limited reusable rocket R&D programs continue to limp towards nebulous targets with minimal funding. Meanwhile, thanks to Arianespace’s French heritage and the major financial support of French space agency CNES, Cour des comptes is in the right to be highly critical of a ~$3.9B rocket development program likely to cost France at least $600M before the first launch.

SpaceX has now been routinely reusing Falcon 9 rockets on commercial missions for nearly two years. (SpaceX)more
As of January 2019, flight-proven Falcon 9 boosters have performed 19 commercial launches since March 2017. (SpaceX)more
Nearly 60% of SpaceX's 2018 launches were flown on flight-proven Falcon 9 boosters. (SpaceX)more
Moving into 2019, SpaceX is likely just months away from its next triple and quadruple-reuse milestones. (Pauline Acalin)more


Once Ariane 6 is ready to launch, it’s aspirational pricing will all but guarantee an inability to compete on an even global playing field. Divided into two versions, A62 and A64, Ariane 6 will cost at least 75 million Euros (~$85M) for performance equivalent to SpaceX’s Falcon 9 in its reusable configuration (base price: $62M), while the heavier A64 variant – capable of placing two heavy satellites (11,500 kg) into geostationary transfer orbit – will cost at least 90 million Euros (~$102M) per launch. Admittedly, $102M to launch a duo of large geostationary satellites would be easily competitive with Falcon 9 with per-customer costs around $50M, but this only holds true if the imminent commercial introduction of Falcon Heavy (list price: $90M) is ignored.

However, the market for large geostationary satellites has plummeted into the ground in the last two years, over the course of which just 12 have been ordered. Arianespace thus faces a conundrum where its cheaper Ariane 62 rocket is already too expensive to compete commercially and the potentially competitive Ariane 64 variant is only competitive for a commercial launch market that has withered to barely a third of its nominal demand in just two years time. Acknowledged by France’s auditors (and noted by Mr. Berger), the most probable outcome for Ariane 6 is one in which the very existence of the rocket will be predicated upon continual annual subsidies from the European Space Agency (ESA) in order to make up for the rocket’s inability to sustain commercial orders beyond a handful of discounted shoo-in contracts.

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Eric Ralph :I write about space, among other things.
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