Interesting article in sci.space.policy on launch c

If they're charging $2600/kg but it only costs $260/kg, then more power to
'em. This means they're making a healthy profit. That's more than can
be said of many other recent space ventures that have 'gone belly-up'.

Ron Menich

cfrjlr@...
07:34 PM sci.space.policy on launch costs (order of magnitude reduction in costs
Please anyone?)
respond to
ssi_list

In a message dated Mon, 23 Apr 2001 7:16:25 PM Eastern Daylight Time, Ian
Woollard ian.woollard@... writes:

Apparently the underlying cost of a Proton rocket (which already
has the lowest cost per kilo to LEO); apparently it's only $5m
for >30 tonnes, that's more than an order of magnitude lower
than the price they charge... (around $2600 normally, bringing
it to $260/kg or less).

I am delighted that people are beginning to realize just how cheap rockets
are in the former USSR.

The current list price is $80-100m reflecting the launch rates that we see
today and the limited market.

The reasons that Russia charges high prices, is in
some measure the same
reason that prices are higher on airplane routes served
by a single carrier - they charege as much as they can get away with. They
are not interested in increasing the size of the market, their focus is
short term, they want fast cash, as much as they can get as quickly as they
can.

The protectionist factions in the west have claimed that Russia launchers
are subsidized, but that is hysterically funny. Rockets represent a huge
profit center for the cash strapped ex-Soviet countries,
especially from Russia, Ukraine and to some extent Kazhakstan.

Anyway, real eye opener huh?

My eyes were opened about eight years ago.
Launcher costs in the CIS have not risen significantly in that time.

Until recently launch prices were controlled by a
one-sided trade agreement which forced Russia and Ukraine to artifically
keep their prices high so as
not to undercut Ariane and the more expensive US launchers. That treaty
expired last Dec 31st.

Hence over the next few years prices for access to space
will fall as quickly as we can convince the CIS folks to
reduce their prices. All that is needed for that would be some creative
business plans, e.g. bulk purchase agreements, prepayment and such like.

CR.