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Competition in the launch industry has intensified in the past couple of years with the introduction of new launch services providers and launch vehicles. The situation is a sharp contrast to several years ago when satellite executives decried a shortage of available rockets. That dearth of available launchers often prevented the timely delivery of satellites into space. Today, a veritable surplus of capacity exists after the entry of Sea Launch and other new providers.
The challenge for launch vehicle companies has been compounded by satellite manufacturing delays, a downturn in business resulting from the Chapter 11 bankruptcy filings of large satellite companies Iridium LLC and ICO Global Communications, new U.S. export controls and a recent string of high- profile launch failures. At the same time, reliable access to space is a necessity for commercial satellite operators and a must for national security.
One company that is rising above the pack is Arianespace, the European launch consortium that is the most frequently used launcher of commercial satellites in the world. Doug Heydon, president of Arianespace Inc., Arianespace's U.S. subsidiary, recently discussed how the recent changes in the launch industry have affected his company and the way launchers will conduct business. Here are the highlights of Part 1 or our two-part interview with Heydon. He sat down recently with Cynthia Boeke, editor of our sister publication Via Satellite magazine and a SATELLITE NEWS contributing editor. Here's what he had to say:
Satellite News: How much business did Arianespace win in 1999? What is your total backlog and market share and how has this changed from previous years?
Doug Heydon: We counted 14 commercial launch contracts awarded in 1999, of which Arianespace won 12. On a relative basis, it was a very good year for us. But on an absolute basis, it was only an average to a good year. The total backlog now stands at 41 contracts after the launch of Superbird 4, with a total value of about $3.5 billion. Market share is an elusive quantity, since it is so sensitive to such variables as the time period under consideration, whether one refers to sales or launches in a given period, and so forth. Using the previous numbers of 12...