Friday, June 1, 2018

Russian State Space Giant Roscosmos May Curb Space Program Due to Lack of Funds (plus Ariane and SpaceX do a flyby)

Additionally, the CEO of France's  Ariane Group is a bit crabby these days.
First up, from Sputnik:
MOSCOW (Sputnik) - The Russian federal space program might face cuts as the Roscosmos state corporation is likely to suffer funding shortages amounting to 150 billion rubles (almost $2.4 billion) in the next three years, a source in the industry told Sputnik.
“The shortages of budgetary funds planned for allocation to Roscosmos from the previous parameters for the next three years is about 150 billion rubles … the lack of funds has already become a reason of delays in the development of interplanetary projects, slowing down construction of the second stage of the Vostochny Cosmodrome and the development of new rocket and space equipment,” the source said.

The federal program for the development of Russian space launch centers for the period of 2017-2025 in 2019 it may receive 17 billion rubles less that it was initially planned, while in 2020 it may see a reduction of funding by 52 billion rubles and in 2021 – 75 billion less, according to the source....MORE
And from Ars Technica:

Ariane chief seems frustrated with SpaceX for driving down launch costs
The France-based Ariane Group is the primary contractor for the Ariane 5 launch vehicle, and it has also begun developing the Ariane 6 rocket. The firm has a reliable record—indeed, NASA chose the Ariane 5 booster to fly its multi-billion dollar James Webb Space Telescope—but it also faces an uncertain future in an increasingly competitive launch market.

Like Russia and the US-based United Launch Alliance, the Ariane Group faces pricing pressure from SpaceX, which offers launch prices as low as $62 million for its Falcon 9 rocket. It has specifically developed the Ariane 6 rocket to compete with the Falcon 9 booster.

But there are a couple of problems with this. Despite efforts to cut costs, the two variants of the Ariane 6 will still cost at least 25 percent more than SpaceX's present-day prices. Moreover, the Ariane 6 will not fly until 2020 at the earliest, by which time Falcon 9 could offer significantly cheaper prices on used Falcon 9 boosters if it needed to. (The Ariane 6 rocket is entirely expendable).
With this background in mind, the chief executive of Ariane Group, Alain Charmeau, gave an interview to the German publication Der Spiegel. The interview was published in German, but a credible translation can be found here. During the interview, Charmeau expressed frustration with SpaceX and attributed its success to subsidized launches for the US government.

$100 million launches
When pressed on the price pressure that SpaceX has introduced into the launch market, Charmeau's central argument is that this has only been possible because, "SpaceX is charging the US government 100 million dollar per launch, but launches for European customers are much cheaper." Essentially, he says, launches for the US military and NASA are subsidizing SpaceX's commercial launch business.

However, the pay-for-service prices that SpaceX offers to the US Department of Defense for spy satellites and cargo and crew launches for NASA are below those of what other launch companies charge. And while $100 million or more for a military launch is significantly higher than a $62 million commercial launch, government contracts come with extra restrictions, reviews, and requirements that drive up this price.

Even as Charmeau decries what he calls subsidies for SpaceX from the US government, he admits that Ariane cannot exist without guaranteed contracts purchased by European governments. To make the Ariane 6 vehicle viable, Charmeau said Ariane needs five launches in total for 2021 and eight guaranteed launches for 2022.

No reusability...
...MORE