Ariane 6 designed with cost reduction in mind

SINGAPORE: Arianespace, provider of commercial satellite launch services, is targeting a 40-50% reduction in cost for its new satellite launcher Ariane 6 in line with its aim to come up with more affordable launch solutions.
Senior vice-president of sales and business development Jacques Breton said the Ariane 6 is designed with production and operational costs in mind.
“Now we are facing stronger competition therefore what we have to do is reduce the cost. Ariane 6 is designed having cost in mind. It is simpler to produce and less expensive (compared with Ariane 5),” he told reporters at a briefing yesterday.
The company will begin promoting and marketing the Ariane 6 by end of 2016 and start launching satellites with Ariane 6 in 2020. Breton said it is confident of the take-up rate.
“We’re no longer looking for technological improvements but cost reduction... the next challenge is to go from technology to more affordable launch solutions,” he said.
He said Ariane 5 will eventually be discontinued and replaced by Ariane 6. It aims to have 11 to 12 launches per year with the Ariane 6 in the future.
The company will gradually reduce the Ariane 5 and ramp up the Ariane 6 launches over the next three years.
In terms of demand, Breton said the overall market globally is limited with typically 20 to 25 telecommunication satellites to be launched per year.
However in Asia Pacific, Arianespace has six satellite launches planned for 2016, which is a record year for the company compared with an average of three satellites launched per year in the past.
“We see that there has been strong demand demonstrated by the fact that we are going to launch six satellites this year. These contracts were signed two to three years ago. It shows that demand was very important at that time,” he said.
Globally, it has 12 satellites to be launched this year with a total value of €1.4 billion (RM6.4 billion). Of the 12, six are in Asia Pacific. It also has €5.3 billion worth of backlog as at end 2015.
“That’s the total value of contracts that we have for satellites to be launched,” said Breton.
In Asia Pacific, it has customers in Hong Kong/China, Japan, Indonesia, India, South Korea, Malaysia, Australia, Singapore, Thailand and Vietnam. Its customer in Malaysia is Measat.
On whether it will have more launches for Measat, Breton said it will depend on the demand in Malaysia.
“They have been our customer so we know them quite well. Right now they are assessing the demand and the necessity of a new programme, when and which kind of satellite. Of course it is a lot of money, it is an important investment and so the decision will be very strategic for the company.
“We talk with them and follow their progress. There’s nothing in the short term but we are close to them. Of course they have satellites where we’ll renew or expand,” he added.