European leaders say an immediate response needed to the rise of SpaceX

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blackhawk887

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there now appears to be increasing concern in Europe that the Ariane 6 and Vega-C rockets will not be competitive in the launch market of the near future.
-
The primary cause? SpaceX.

We all know where this will end up.

Someone from the Union will file a complaint against SpaceX, and then the Union will begin to treat it like they do Facebook, Apple, Amazon and Google: a web of rules, taxes, and threats of antitrust action.
But what would that really accomplish? For the tech companies, the antitrust rulings had to be complied with since they couldn't realistically pull out of the European market.

SpaceX could easily stop providing launches for European companies, and all that will do is make it more expensive for European communications companies to get their Sats flying. There could be some more interesting actions against StarLink, as Europe could provide a pretty decent market for their services, but I'm not sure how they could leverage that against launch costs.

The “web of rules and taxes” would hurt long before the antitrust action begins.

They have no leverage. SpaceX doesn't operate in the EU, and the EU can't tax or regulate SpaceX operations in the US. They can't make it harder for the EU satellite manufacturers to put payloads on SpaceX vehicles, because then customers will just buy satellites from US manufacturers.

What Europe is doing now with Ariane is very similar to what the US did in the 1980s with the Shuttle, and it's going to cost them their dominance in the commercial launch market, just as it did the US at that time.
 
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68 (72 / -4)

platykurtic

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Friendly reminder to readers: the first successful Falcon 9 landing was on December 21, 2015.

When SpaceX announced plans to pursue reusability years before that date, that should have been a serious warning and caused Europe to reconsider their long-term Space launch plans.

The first successful landing should have triggered immediate action to adjust plans.

The fact they're realizing there's a problem after over five years after the first successful landing is... Staggeringly out of date.
I don't think that's entirely fair ... there's been some work on European re-use in the meantime and it's been apparent that the inital 'freak out' occurred some time ago. The issue - for the Europeans - is that the rocketry program represents a jobs & capability program as much as a commercial one, where the commercial role is to ease some of the cost. It appears rapidly developing a re-usable rocket & putting people out of work wasn't politically feasible, and so the European solution is to transition at an agreeable (to them) pace. Of course the market - like usually happens - is transitioning faster and so the next phase of discussion is about either a) accelerating the response or b) supporting the existing capability more directly in the meantime. My suspicion is that b) will win.

10 years cures a lot of 'jobs programs' ills. Folks retire or move on and younger capability can transition or be trained on the newer reality. And if SpaceX want to maintain it's pace of development towards Mars then it'll need funds which could help sustain pricing in the near term. But it's true the future direction is clear.
 
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43 (43 / 0)
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ColdWetDog

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If you can't beat them, join them.

Launch is a tiny market. A few dozen launches at $50M per year in a market that SpaceX has commoditized. SpaceX has made launch cheap, making payloads much more valuable, relatively. Forget about launch, work on cool payloads.

The ESA has always been good about putting cool payloads on NASA's rockets, like putting the Columbus lab on the Shuttle Those other people don't have to be government agencies like NASA. SpaceX would love to partner with you to launch cool shit to Mars. RocketLab would love to partner with you to launch cool shit to Venus. How about a sister to Heracles that doesn't require the Lunar Gateway boondoggle?

Government agencies shouldn't be working on solved problems. There are enough unsolved problems in space that can open up new markets for your citizens.

It can be argued that having politically unfettered access to space (previously known as ICBM capability) is an unsolved problem for many countries. Now, we've moved a bit from ICBMs as the only reason to put up with the rocket equation, but the idea is still important for Europe (and China and India and Iran - if they can ever get their act together). So having dirt cheap access isn't the only metric.
 
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27 (27 / 0)
there now appears to be increasing concern in Europe that the Ariane 6 and Vega-C rockets will not be competitive in the launch market of the near future.
-
The primary cause? SpaceX.

We all know where this will end up.

Someone from the Union will file a complaint against SpaceX, and then the Union will begin to treat it like they do Facebook, Apple, Amazon and Google: a web of rules, taxes, and threats of antitrust action.

How do you figure? Does SpaceX operate in the EU? I don't think so. When customers come to SpaceX, those customers are choosing to do business in the US, and US regulations apply. As long as SpaceX's launch business takes place solely within the US, the EU has no ability to impose squat on SpaceX.
 
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47 (48 / -1)

Avalon

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The first successful landing should have triggered immediate action to adjust plans.
But then the design folks a) have to admit they've been outdone b) call into question current funding for design and development.

Better to wait to admit the obvious when their design work is complete and ready for production, then claim "no one could have foreseen this when we started" and claim emergency. Then ask for new money to come up with a salespitch for dedicating billions of dollars for the same people (in a restructured, much larger organization) to either attempt the design of some revolutionary technology or duplicate SpaceX tech. Which will arrive in some form in 15 years due to unforeseen technical, organizational, and integration challenges.
 
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10 (10 / 0)
ESA has a budget of about 6.5 billion euros a year...... instead of paying for useless white papers, they’d be better served by just buying several billion euros of spacex stock when it hits IPO. 😂

That budget includes Copernicus, Galileo and all collaborations with NASA. I doubt there's much left for Ariane development. If ESA had a similar budget to NASA, there'd be plenty to kickstart commercial development.
 
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23 (26 / -3)
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Just back from Googling. Apparently the EU has a population almost twice the size of the US.

Where are their Elon Musks, Googles, Apples and Facebooks? Surely there are individuals of similar talent and drive among that population.

Money. And focus.

The EU has a number of billionaires that could afford to start up a SpaceX clone. They apparently don't care to. It is just a weird bit of historical timing that the US has several young, tech based billionaires with a penchant for space who would rather spend money on stainless steel than hookers and blow (OK, Bezos could afford both, he's playing some other game but we shall see where that goes).

Musk, Bezos, Paul Allen, maybe Branson and now with stick on venture capitalists following along merrily.

Forget governments, the are going to take up the rear for at least the near future.

Paul Allen is sadly no longer about and Branson is technically a European (in the wider sense) billionaire.

Sir Richard is, of course, English, and Britain has left the EU. Sure, geographically that's still European, but then so is (part of) Russia.

ESA isn't part of the EU so I guess that means it's also somehow not European?

https://en.wikipedia.org/wiki/European_ ... pean_Union
 
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17 (23 / -6)

nom3ramy

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Just back from Googling. Apparently the EU has a population almost twice the size of the US.

Where are their Elon Musks, Googles, Apples and Facebooks? Surely there are individuals of similar talent and drive among that population.

I know correlation isn't causation, but I'll take Norway life over USA's economic policies that favor those companies' existence.

(Damn I miss Symbian and their business model)
Why can't we have both the culture of innovation that can foster successful companies AND having good social structure?
It's theoretically possible, but would require very careful optimization.

There would be compromises to each goal, so it would be necessary to find some offsetting gain (say, a good social structure somehow set up to promote innovation in a way other structures do not). In a task with very narrow technical margins, any serious compromise would make the task so uncompetitive as to guarantee failure (e.g. SLS, etc).
 
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1 (3 / -2)

jhodge

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Just back from Googling. Apparently the EU has a population almost twice the size of the US.

Where are their Elon Musks, Googles, Apples and Facebooks? Surely there are individuals of similar talent and drive among that population.

I know correlation isn't causation, but I'll take Norway life over USA's economic policies that favor those companies' existence.

(Damn I miss Symbian and their business model)
Why can't we have both the culture of innovation that can foster successful companies AND having good social structure?

In all seriousness, maybe good social structure requires prioritizing fairness, equity, and stability while innovation flourishes in competitive, risky environments? For an extreme example, look at how much of modern technology is rooted in WW2 and the Cold War.
 
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38 (44 / -6)
The first successful landing should have triggered immediate action to adjust plans.
But then the design folks a) have to admit they've been outdone b) call into question current funding for design and development.

Better to wait to admit the obvious when their design work is complete and ready for production, then claim "no one could have foreseen this when we started" and claim emergency. Then ask for new money to come up with a salespitch for dedicating billions of dollars for the same people (in a restructured, much larger organization) to either attempt the design of some revolutionary technology or duplicate SpaceX tech. Which will arrive in some form in 15 years due to unforeseen technical, organizational, and integration challenges.

Given the pace of bureaucracy, the "freak out" probably happened 2-3 years ago, and the EU has just taken that long to complete investigations, committee meetings, PR veting, and get multinational approval.
 
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11 (16 / -5)

mgc8

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Direct link to the ESA board deliberating on the topic:

https://youtu.be/l23_-1v__Fg

Seriously though, as a proud European I love the EU for the peace and prosperity it brought to the continent, and its many truly positive achievements over the last decades. But space policy and Covid response are two aspects that have been and continue to develop as an overwhelmingly disappointing fiasco...
 
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34 (35 / -1)
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bortholomew

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945
there now appears to be increasing concern in Europe that the Ariane 6 and Vega-C rockets will not be competitive in the launch market of the near future.
-
The primary cause? SpaceX.

We all know where this will end up.

Someone from the Union will file a complaint against SpaceX, and then the Union will begin to treat it like they do Facebook, Apple, Amazon and Google: a web of rules, taxes, and threats of antitrust action.
But what would that really accomplish? For the tech companies, the antitrust rulings had to be complied with since they couldn't realistically pull out of the European market.

SpaceX could easily stop providing launches for European companies, and all that will do is make it more expensive for European communications companies to get their Sats flying. There could be some more interesting actions against StarLink, as Europe could provide a pretty decent market for their services, but I'm not sure how they could leverage that against launch costs.

The “web of rules and taxes” would hurt long before the antitrust action begins.
But SpaceX can easily pull out of the European launch market completely as they really only account for a few launches per year, as Europe has basically already black-listed SpaceX to prioritize Ariane 5/6. (Hmmm, could SpaceX start anti-trust litigation against ESA?)

StarLink is the more interesting angle. Europe could definitely argue that SpaceX has an unfair advantage since they have cheaper launch costs than anyone else, though it's hard to see what the remedy would be, as I can't imagine they could force SpaceX to lower launch prices for their competitors. I'm sure their legislators will come up with something interesting, though.
 
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14 (15 / -1)
So, what happens when SpaceX builds launch pads in Europe and Africa and Asia? SpaceX is not a governmental agency, and their mission is to get **humanity** to Mars, not **the United States**. Too many national morons saying we must compete instead of collaborate leads to nuclear war.


I can see space x building launch facility in a wealthy country like UAE.
 
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-19 (4 / -23)
I can't wait for some European ingenuity to create an entirely new technology because desperation always drives innovation, and innovation is needed. Perhaps some sort of maglev booster up the side of a mountain to get the entire mass moving to about 400 kph before lighting off the rocket engines at about three kilometers ASL. Put wings on the booster and glide it back to land on a runway and make the wings wet. I'm just spit-balling, but why not?
They can barely keep their 20 year old launcher working consistently, I dont think European ingenuity will be inventing much of anything besides new fines and antitrust investigation for SpaceX.
 
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-3 (18 / -21)

CraigJ ✅

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Just back from Googling. Apparently the EU has a population almost twice the size of the US.

Where are their Elon Musks, Googles, Apples and Facebooks? Surely there are individuals of similar talent and drive among that population.

It is just a weird bit of historical timing that the US has several young, tech based billionaires...who would rather spend money on stainless steel than hookers and blow...

Pretty sure Elon can afford both...
 
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-2 (4 / -6)

Bongle

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So, what happens when SpaceX builds launch pads in Europe and Africa and Asia? SpaceX is not a governmental agency, and their mission is to get **humanity** to Mars, not **the United States**. Too many national morons saying we must compete instead of collaborate leads to nuclear war.

Their mission is to make money, Mars will be done only if profitable (or subsidized by any party, as it was by US government).
If SpaceX was in it to make money they would've ended all R&D (Starship? cut that shit out) and milked their 15-year head start on reusable rocketry starting a couple years ago. They'd charge a dollar less than the 2nd-cheapest rocket, rather than massively undercutting it.

They're definitely a for-profit company, but my guess is that as long as Elon is in charge, at least one Mars mission will happen even if a country doesn't pay for it.
 
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71 (74 / -3)

jhodge

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Just back from Googling. Apparently the EU has a population almost twice the size of the US.

Where are their Elon Musks, Googles, Apples and Facebooks? Surely there are individuals of similar talent and drive among that population.

I know correlation isn't causation, but I'll take Norway life over USA's economic policies that favor those companies' existence.

(Damn I miss Symbian and their business model)
Without the US, Norway would be either a Soviet satellite state or a Nazi travel resort. Maybe you could set up a nice little business tidying up the cabins of Himmler’s progeny.

And without Russia, we might all be speaking German about now. We did out part, but Russia sustained more casualties than the rest of the Allies combined.
 
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41 (63 / -22)

blackhawk887

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18,739
Just back from Googling. Apparently the EU has a population almost twice the size of the US.

Where are their Elon Musks, Googles, Apples and Facebooks? Surely there are individuals of similar talent and drive among that population.

Money. And focus.

The EU has a number of billionaires that could afford to start up a SpaceX clone. They apparently don't care to. It is just a weird bit of historical timing that the US has several young, tech based billionaires with a penchant for space who would rather spend money on stainless steel than hookers and blow (OK, Bezos could afford both, he's playing some other game but we shall see where that goes).

Musk, Bezos, Paul Allen, maybe Branson and now with stick on venture capitalists following along merrily.

Forget governments, the are going to take up the rear for at least the near future.

What is the business case for a European SpaceX? SpaceX was heavily reliant on NASA and DoD funding for much of it's existence, and that's still around 40% of their revenue. Until Starlink is cashflow positive, SpaceX's business case relies on NASA and DoD funding.

Who would invest in a European SpaceX? How much money would they have to put into it? Would they be able to pull ESA and defense contracts away from Airbus, Thales, Avio, and the other big players? SpaceX had to risk everything and sue their competitors AND their customers to get contracts. Would that fly in European courts?

A lot of things had to come together for SpaceX to succeed: government contracts, venture capital, DoD assistance, and the right leadership and talent. SpaceX stepped into a situation where decades of intense defense spending had resulted in the infrastructure and people they needed being available. Europe's lower defense spending (and civil, but mostly defense) on space resulted in far fewer companies and people with the requisite skillsets being available.

I don't know that it could ever happen in Europe, not without tens of billion of dollars in investment - and there is no business case to make that investment.
 
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63 (70 / -7)

Curly4

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Moreover, any initiative will be complicated by politics. The Ariane program has roots in France while Vega originated in Italy.
Uh oh. Incoming EU investigations on “market abuses” by SpaceX!

The difference between SpaceX and all the other space launching companies is that Space has done most of its development of its rockets on its own dime. This has allowed it to be fore flexible in the approach that the company took and to make decisions much more rapidly also. It was not until that SpaceX had a rocket that showed promise did the US government invest any money in it. The government only invested money in the company because the government run program was not working and may never work.

If Europe wants to compete in the space launch business it needs to take what SpaceX has shown to work and build on that. Invest in the companies that have developed a proven plan and then add a little incentives to nudge the compan(ies) in the direction it is needed to go. But don't burdon the companies with politics and bureaucratic controls that has hogtied the US rocket industry until SpaceX came on the scene.
 
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5 (9 / -4)
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A.Felix

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And EUs answer to this will be like always, instead of innovating, they'll try regulating.

To be honest a lot of the times we see EU regulations with respect to big companies it usually it's a very good thing. However, this is a very different thing, and that's why they're approaching it in a different way. They could regulate all they want and bring SpaceX into price parity with EU launch services through some measures. However, that doesn't solve anything, because all that does is increase the price for access to space for EU companies. They may be slow, but they're not dumb, and mocking regulatory bodies and their work is a US trove that has led us to incredibly poor outcomes. Poisoned people, falling planes, economic crises, etc. Regulations are needed.

Now, what the EU should do (and really, should've done already) is foster the creation of launch companies like SpaceX. There is an implicit disadvantage due to having less launches needed, as the US launches a lot of stuff, but you can use government money to keep things going in one way or another. We do that in the US as well. Finally, it's weird to mock the EU as being an institution that didn't see this coming. Tory Bruno, CEO of ULA, is still questioning the economics of rocket reuse, or at least he was as of last year when it's the last time I read about it. A direct competitor to SpaceX, in the same country, battling for the same contracts, is still unsure if reusable rocketry is the way forward.

I, for one, hope the EU can get its shit together on this. The world as a whole will be better with a variety of rocketry approaches, innovation, and access to space. They're late to the party for sure, but better late than never I guess.
 
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41 (51 / -10)
the way most companies who are about to be disrupted into ruination react.
Pretty much. Very reminiscent of RIM's response to the iPhone. They knew it was coming and dismissed it as not possible. Saw it released and it dismissed it as non-serious and not for businesses like a blackberry. Saw it succeed and then finally decided to freak out and do something years too late.

It's worth noting that in the past two weeks, I've seen serious players call SpaceX's Starship "impossible". The level of denial that can exist - as SpaceX build prototype after prototype in an open air factory site broadcast live on Youtube and then proceed to launch them - it's impressive!
Links? Not doubting, but it would be fun for posterity a la “SLS is real, falcon heavy is not”.
 
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23 (23 / 0)

stige

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Friendly reminder to readers: the first successful Falcon 9 landing was on December 21, 2015.

When SpaceX announced plans to pursue reusability years before that date, that should have been a serious warning and caused Europe to reconsider their long-term Space launch plans.

The first successful landing should have triggered immediate action to adjust plans.

The fact they're realizing there's a problem after over five years after the first successful landing is...

the way most companies who are about to be disrupted into ruination react.

denial is a helluva drug
 
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13 (14 / -1)

O/Siris

Ars Tribunus Angusticlavius
6,585
Friendly reminder to readers: the first successful Falcon 9 landing was on December 21, 2015.

When SpaceX announced plans to pursue reusability years before that date, that should have been a serious warning and caused Europe to reconsider their long-term Space launch plans.

The first successful landing should have triggered immediate action to adjust plans.

The fact they're realizing there's a problem after over five years after the first successful landing is... Staggeringly out of date.
I'll defend the ESA a bit there. Remember, for quite a bit of their history, SpaceX was on the verge of going under. We're all better off that they're full viable now, but it was damned close to a flash in the pan for a while there.

I would agree that ESA has been slow to respond, but in terms of how things looked back then, there was good reason to doubt that it would work out.
 
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33 (36 / -3)

graylshaped

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Don't freak out...

Innovate.

A friend I've known for 45 years, whose veracity I have never had reason to doubt, worked at the Ariane launch site many years ago--I believe it was in French Guiana--and he described how, every time a rocket launched, the French Foreign Legion, ostensibly guarding the entrances to the site, would immediately pull out their weapons and start shooting at the rocket.

I have no proof other than the anecdote, but it makes for a good story.


edit: A link that does not confirm the story, but adds to its plausibility.

And another one that suggests while the setting remains challenging, the discipline may have improved from the early days of the program described in the anecdote: https://www.popularmechanics.com/milita ... -10487410/ I have no intention of disparaging the FFL, their interesting past notwithstanding.

I bet Eric Berger knows people who could--probably off the record--grimace and nod.
 
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-8 (11 / -19)

DarthSlack

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the way most companies who are about to be disrupted into ruination react.
Pretty much. Very reminiscent of RIM's response to the iPhone. They knew it was coming and dismissed it as not possible. Saw it released and it dismissed it as non-serious and not for businesses like a blackberry. Saw it succeed and then finally decided to freak out and do something years too late.

It's worth noting that in the past two weeks, I've seen serious players call SpaceX's Starship "impossible". The level of denial that can exist - as SpaceX build prototype after prototype in an open air factory site broadcast live on Youtube and then proceed to launch them - it's impressive!
Links? Not doubting, but it would be fun for posterity a la “SLS is real, falcon heavy is not”.

The absolutely hilarious part is that as a launch vehicle, Starship probably already has SLS beat. SpaceX could probably be launching commercial loads in the very near future if they were willing to throw away the rocket. It's the landing bit that's proving difficult.
 
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blackhawk887

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18,739
Friendly reminder to readers: the first successful Falcon 9 landing was on December 21, 2015.

When SpaceX announced plans to pursue reusability years before that date, that should have been a serious warning and caused Europe to reconsider their long-term Space launch plans.

The first successful landing should have triggered immediate action to adjust plans.

The fact they're realizing there's a problem after over five years after the first successful landing is... Staggeringly out of date.
I'll defend the ESA a bit there. Remember, for quite a bit of their history, SpaceX was on the verge of going under. We're all better off that they're full viable now, but it was damned close to a flash in the pan for a while there.

I would agree that ESA has been slow to respond, but in terms of how things looked back then, there was good reason to doubt that it would work out.

By 2014 SpaceX had nearly $10 billion in contracts and investments, mostly with the US government. It was pretty obvious that they weren't going under. No assessment leading to Ariane 6 should have even considered that SpaceX might go under; that would be a major oversight.

However, it wasn't clear until about mid-2017 that SpaceX's bet on reuse would pay off. Ariane 6 should have been cancelled then, in favor of going directly to Ariane Next with partial reuse.
 
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51 (53 / -2)

Sextusaurelius

Smack-Fu Master, in training
68
Just back from Googling. Apparently the EU has a population almost twice the size of the US.

Where are their Elon Musks, Googles, Apples and Facebooks? Surely there are individuals of similar talent and drive among that population.

I know correlation isn't causation, but I'll take Norway life over USA's economic policies that favor those companies' existence.

(Damn I miss Symbian and their business model)
Without the US, Norway would be either a Soviet satellite state or a Nazi travel resort. Maybe you could set up a nice little business tidying up the cabins of Himmler’s progeny.

And without Russia, we might all be speaking German about now. We did out part, but Russia sustained more casualties than the rest of the Allies combined.


In hindsight, the Molotov-Ribbentrop pact wasn't a particularly wise alliance for the Soviets.
 
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32 (32 / 0)

bpd1069

Smack-Fu Master, in training
72
to study competitive launch systems from 2030 onward.

Am I understanding this correctly? This study for future space transportation doesn't even begin until 2030? Not, begin studying now and have results ready for ESA by 2030? Or, begin studying now to map out what the ESA will be doing in the 2030s?

So they're not even going to begin looking at more competitive solutions until 15 years after SpaceX landed the first Falcon 9?


By 2030 the Falcon 9 will be retired, and Starship, and its 18m successor will be flying.
 
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7 (10 / -3)

Desaix

Wise, Aged Ars Veteran
149
Let me state the painfully obvious: in the long run, an expendable vehicle can't compete with a reusable one.

You have to deliver a small package to a nearby town, you have to choose between using a bike or using an 18-wheeler. Easy choice, right? Well, what if I told you that you have to dump the bike after the delivery? The bike costs a few thousand bucks, fueling the truck for that trip is about a couple hundred.

I know this argument is very old, but it appears that some people still resist to accept reality. Yes, I know, I know: we're talking rockets here, GSE is a big chunk of the launch service cost, most of the rocket is a simple pressure tank, engines/motors are the really expensive bit, etc, etc. Rubbish. Falcon 9 is a first generation partially reusable vehicle, and it already cuts costs by at least half. Even if Starship lives up to just 25% of its promise, the path to the future is clear.
 
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28 (30 / -2)