'Ariadne', the European rocket, was found to be less costly than the American space shuttle, judging by the price proposals sent to Intelsat for the orbiting of its three latest telecommunications satellites in the Intelsat 5 series. The 'Ariadne' is being offered by the ESA and CNES at a ceiling price of $20 million, while the shuttle is priced by NASA at $22.5 million under the same condition. Neither the U. S. nor ESA have endorsed these prices officially. They are being presented as estimates. The 'Ariadne' has a ceiling price, which can only be adjusted downwards, if need be. The launching prices of both of these spacecraft do not include the cost of adapting the Intelsat 5 satellites, designed for the Atlas Centaur rocket

Langereux, P.

English

NASA Technical Reports Server

NASA TM -75057
NASA TECHNICAL MEMORANDUM 

IS LESS COSTLY THAN THE '1SPACE'SHUTTEE""ARIADNE" 
Pierre Langereux
 
1 11
I LES CC Sl-y TB N78-12 
I LSS OSEL TAIinxD:(I4ASA-flL4-i§ 0 5 7 ) iNaticnal Aeronautcs and SPACE SEUtTLE
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CSCL 22A 

G3 12 53580 

Translation of "Ariane" Moins Chere que la "Navette Spatiale,"
 
Air et Cosmos, No. 685, pp. 41 & 43, Sept. 24, 1977
 
NATIONAL AERONAUTICS AND SPACE ADMINISTRATION
 
OCTOBER 1977
WASHINGTON, DC 20546 

9 
https://ntrs.nasa.gov/search.jsp?R=19780004168 2020-03-22T06:41:18+00:00Z
STANDARD TITLE PAGE 
1. Report No. 2. Gove.rnment Accession H. 3' Recipient's Catalog No. 
NASA TM-75057
 
4. Title and Subtitle 5. Ropo;t Dote 
October 1977
 
"ARIADNE" IS LESS COSTLY -THANTHE "SPACE 
 6. Performing Orgonizotion Cod. 
SHUTTLE"
 
7. AuthorCs) 8. Performing Organizotion Report No. 
Pierre Langereux 10. Work Unit No. 
9. Performng Organizoton Nome and Address 11. Controct or Grant No. 
Trans emantics, Inc. NASw-2792 
190.ennsSuite 
 407. 13. Type of Raport ond Period Cove.ed 
1901 iPennsylvan-a Ave., NW ute47 Translation
 
Washington, DC 20006
 
12. Sponsoring Agency No'me ond Address' 
NATIONAL AERONAUTICS AND SPACE ADMINISTRATION
 
14. Sponsoring Agency Cod.Washington, DC 20546 

15. Supplementary Notes 
Translation o "Ariane" Moins Chere que la "Navette Spatiale,"
 
Air et Cosmos, .No.685; pp. 41 & 43, Sept. 24, 1977
 
16. Abstract 
This article is about "Ariadne", the European rocket. In comparison,
 
the "'Ariadne" has been-found to be less costly thatn the American
 
"Space Shuttle", judging by the price proposals sent to Intelsat for
 
the orbiting of its three latest telecommunications satellites in'.the
 
"Intelsat 5" seris. The "Ariadne" is being offered by the E.S.A. and 
C.N.E.S at a ceiling price of $20 million, while the "Shuttle" is priced
 
by N.A.S.A. at $22.5 million under the same condition, but thede prices
 
announced-are by no;nmegns final. Neither the U.S. nor E.S.A. have
 
endorsed these prices.qfficially.-The:. are being presented as estimates.
 
The "Ajiadne" has-a "ceiling" price, which chn otly be adj-usted downwards,
 
if need be. The- launching prices of both of.these spacecraft do not
 
include the cost of adapting the "Intelsat 5" satellites, .designed for the
 
"Atlas Cefttiur" rocket.
 
As for the credibility of the two launchers, Comsat recently adknowledged
 
that the "Ariadne" program was not as risky as the "Shuttle" program, and
 
a th \that the M-Ariadne" ts'approximately one year ahead of the "Shuttle'.
 
More battles are yet to come."
 
17. Key Words (Selected by Author(s)) 18. Distribution Sttaement 
-: . Unclassified-Unlimited 
19. Security Clotill. (of iis vort) 20. Security Clossif. (of this peg.) 21. No. of Pages 22. 
Unclassified Unclassified 5
 
- NASA-IO 
/41 
"ARIADNE" IS LESS COSTLY THAN THE "SPACE SHUTTLE"
 
Pierre Langereux
 
"Ariadne", the European rocket, has been found to be less costly 

than the American "Space Shuttle", judging by the price proposals sent
 
to Intelsat for the orbiting of its three latest telecommunications
 
satellites in the "Intelsat 5" series (Nos. 5, 6 and 7) beginning in
 
1980 (the first four "Intelsat 5" satellites are being launched with
 
"Atlas-Centaur" rockets).
 
"Ariadne" is being offered by the European Space Agency (ES.A.) and
 
the National Center for Space Studies (Centre National dEtudes Spatiales -
C.N.E.S.) at a ceiling price of $20 million, while the "Shuttle" is 
priced by N.A.S.A. at $22.5 million under the same conditions, i.e., in 
1977 dollars for the geostationary transfer orbiting (apogee 36,000 km)
 
of an "Intelsat 5" satellite (950 kg). These offers include a price
 
escalation scale, depending on inflation, based on 7% per year for the
 
American prices and almost as much for the European prices; the E.S.A.
 
offer includes either an annually adjustable lump-sum price or a fixed
 
price incorporating initially an estimate of inflation.
 
In both cases, the prices announced are by no means final yet: the
 
U.S. prices have not been endorsed by N.A.S.A.'s backers, while E.S.A.
 
prices - drawn up with the agreement of C.N'..E.S., on the basis of indus­
trial contract prices - still have to be officially confirmed by member­
countries, although they ire.-aware of them already and have approved them.
 
These data, however, are sufficiently sobering to merit discussion
 
and evaluation, since this is how they were officially presented to a
 
potential user (Intelsat) for a competitive contract.
 
In the case of the "Shuttle", the $22.5 million price tag is presented
 
by N.A.S.A. as an estimated base cost (subject to readjustment) which in­
cludes the cost of the "Shuttle" and $4 million for the upper, non-reusable
 
1 
powder stage, "SSUS-A", specially built to launch the "Intelsat 5"
 
satellites from the low orbit of the "Shuttle", which is launched from
 
Cape Canaveral, Florida. Furthermore, this price entails a ",hared"
 
launching between the "Intelsat 5" satellite and another, smaller
 
satellite of the "Thor Delta" class to be placed in orbit at the same
 
time. Otherwise, Intelsat would have to pay an additional $10 million
 
in order for its satellite to enjoy an "exclusive" launching.
 
As for the "Ariadne", the offer submitted to Intelsat on September 6 
has a "ceiling" price which can only be adjusted downwards, if- need be, 
and is for an exclusive launching of an "Intelsat 5" satellite on a date 
chosen by Intelsat (between November 1980 and mid-1983 for the 5th 
satellite, in mid-1981 for the 6th, and in mid-1982 for the 7th,). This 
"Ariadne" price is based on the assumption of two firings a year from
 
the Kourou base (C.S.G.) in French Guyana.
 
These "Shuttle" or "Ariadne" launching prices obviously do not in­
clude the cost of adapting the "Intelsat 5" satellites, designed for
 
the "AtlasiCintaur" rocket. An estimate made several months ago gave a
 
cost of about $5 million for adapting the "Intelsat 5's" to the "Shuttle".
 
There is no mention of an adaptation clause for the "Ariadne" in the
 
contract with Ford Aerospace, manufacturer of the satellites, but Comsat's
 
technical director recently told the Intelsat Council of Governors that
 
compatibility with the European launcher - very similar to the "Atlas-

Centaur" - posed no special problems.
 
For the time being, then, Intelsat is keeping its two options open,
 
despite pressures from N.A.S.A., which is pushing-faor the irreversible
 
' ' 
choice 6f the "Shuttle" (asking that appropriations for the "SSUSSAs ­
$2 to 3 million - be made available immediately). In point of fact,
 
neither one of the solutions proposed can be eliminated on the basis of
 
pt±ce. As for the crddibility of the two launchers, Comsat recently
 
acknowledged that the "Ariadne" program was not as risky as the "Shuttle"
 
program. C.N.E.S., in turn, estimates that the "Ariadne" is approximately
 
one year ahead of the "Shuttle", comparing the same stages in both pro­
grams. The political battles are yet to come, however"
 
2 
December has been set for the-teport by Intelsat's Director General
 
to the Council of Governors, which is then scheduled to choose between
 
the two proposals; however, a firm order for the three launchers is not
 
anticipated before mid-1978. Europe is hopeful of being able to include
 
the "Ariadne" option in the Ford Aerospace contract, but it would be
 
surprisiig if, meanwhile, the U.S. did not make a counter-pioposal for
 
the "Shuttle" at a lower price.
 
And yet, contrary to the various statements by N.A.SA. on the com­
petitiveness of the "Shuttle", the fact remains that the reusable "Shuttle"
 
is more costly than the traditional European launcher. This is indeed a
 
revelation.
 
It should be noted at this point that the new prices announced by
 
N.A.S.A. have considerably increased over the figures officially announced
 
last June. Thus, for the launching of a geostationary "Atlas-Centaur"
 
type satellite, prices (in 1977 dollars) rose from $16.5 million (equiva­
lent to $15.4 million at the 1976 price) to $22.5 million, i.e., an
 
increase of over 36% in four months!
 
This is not to say that the new.estimates are any more definitive
 
than the old ones, as N.A.S.A. would have one believe. There are doubts
 
as to the reliability of these prices, excluding as they do numerous
 
factors normally taken into account for conventional American launchers.
 
For example, the depreciation cost of the five "Orbiters" - $600 million
 
each - designed to make at least 100 flights apiece, is not included,
 
representing $6 million per flight. Moreover, the actual operating costs
 
of an entirely new craft such as the "Shuttle" can still not be evaluated
 
with total accuracy, according to the General Accounting Office: the
 
actual service life of the engines (designed for 55 flights) or of the
 
(permanent) thermal protective cladding, or reutilization of the powder
 
boosters (for 10 flights) after recovery at sea, etc. N.A.S.A.'s mission
 
model for its "Shuttle" fleet (572 flights in 12 years at a payload of
 
29.5 tons per flight) appears rather optimistic at present, equating to
 
approximately one flight per week each year!
 
3 
The price policy proposed by E.s.A. for "Ariadne" and which is to be
 
approved by member-countries at the end of October, in general provides
 
for two sets of rates, depending on the users.
 
For the Agency and member-cohntries, the prices will be set at a
 
"reasonable" level, taking into account the production schedule and
 
including both direct costs (rocket production, launching costs, etc.)
 
and indirect costs (amortization of investments, etc.). Thus, the
 
launching of a geostationary satellite of 900 - 1,000 kg would be
 
invoiced at 28.5 million accounting units (slightly over $30 million)
 
and a 450r-_500vkg geostationary satellite launching at 22.5 million
 
accounting units. "Ariadne", however, will also be able to undertake
 
"double launchings" of 450 - 500 kg class satellites for a total price
 
of 29 million accounting units (with 0.5 million accounting units for
 
the adaptor), or 14.5 million accounting units per satellite.
 
Not included in these figures are costs involving the launch pad
 
(CSG), amounting to approximately 100 million francs per year. Currently,
 
and up until the end of 1980, they are taken into account separately
 
by France for the most part and by the member-countries, participating
 
contractually (20 million accounting units out of 76 million over 5
 
years). After 1980, E.S.A. plans to extend the system, but by increasing,
 
as France hopes, the participation of the member-countries.
 
For users who are not members of the E.S.A., the prices will be set /43
 
so that they are competitive with market prices. Basically, they will
 
include recurring costs (fixed costs not included), but not to such an
 
extent that the launcher is sold at a loss, i.e., without requiring a
 
subsidy from member-countries. The cost price of the "Ariadne", which
 
will depend on the rhythm of production adopted, was estimated in 1976
 
prices at 22.3 million accounting units for 4 firings per year, and at
 
27 million accounting units for 2 firings per year, using the formula:
 
recurring cost of 17.65 million accounting units + fixed costs of 18.75
 
million accounting units divided by the number of launchings.
 
This principle will be applied for the first batch of launchers,
 
referred to as the "Promotion Series", production of which is to be
 
determined before the end of the year by the E.S.A. Council. This
 
series currently includes six rockets for European requirements:
 
"Exosat" satellites, late 1980 - early 1981; "ECS " in 1981; "ECS" 2
 
in 1982; "H-SAT", early 1982; and "SPOT" in,'1983; the sixth launcher
 
will be held in reserve for a foreign satellite (Intelsat 5, Anick C,
 
Comstar, Insat or Norsat).
 
5 


Ariane is less costly than the space shuttle

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