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Subject

The outlook for the European space sector.

Significance

Construction of a launch pad for Europe's proposed Ariane 6 rocket is getting underway this month at an abandoned quarry in French Guiana. The European Space Agency (ESA) approved in mid-July the 4.6-billion-dollar contract to develop and build the next generation of the satellite launch vehicle. The Ariane 6 arrangements pioneer a more commercial ESA approach but carry political risks for European space policy.

Impacts

Some US competition to Ariane is being affected by uncertainty over the future of Russian rocket engines, as a result of Western sanctions.

Launch systems elsewhere are aging or, in Russia and China, affected by political restrictions on sales to Western customers.

As part of the new deal, Airbus Safran will have to operate without ESA annual price support for Ariane commercial launches.

The Ariane 6 industry team will be under pressure to deliver the new rocket by 2020 and within strict cost limits.

For the Ariane 6, Airbus Safran aims to halve the price of a telecommunications satellite launch.

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