Via Satellite: How do you see the market for launch services developing?
Heinly: I am thinking in terms of the medium-class satellites that we could launch on Delta 2. We see that as a fairly level market for us. There is a lot of optimism that the number of Delta 4 class launches will continue to increase. We know right now we are not cost competitive on Delta 4 with the Russian-based rockets, but we do think there will be a customer here or there where we will be able to meet their needs. With the [United Launch Alliance] being formed the production facilities are being consolidated and the program management and engineering are also being consolidated. After the consolidation has taken place, those efficiencies should allow us to procure these rockets … at a lower price, and therefore, we will be able to sell them at a lower price. The moves from a personnel standpoint are taking place now and will be in pace by the end of the year. I do not know the schedule relative to consolidating the factory, but I would think it would take place several years.
Via Satellite: How do you make Delta 4 more competitive?
Heinly: It all depends on where the market goes. When we thought the market was going to be robust we looked at the dual manifest capability to put on top of the Delta 4 heavy which would have afforded some price advantage to the users. That was put aside. If the market was to blossom, we could get into a situation where we could offer customers single, dedicated launches and dual manifest launches, but that would require some development. There are a lot of variables as to whether that could happen. I don’t think dual manifests are going to happen soon on Delta 4 unless it is driven by the government customer. For the commercial market, we could talk about dual manifests after the efficiencies are realized.
Via Satellite: Do you think the way FSS operators secure services launch providers will change?
Heinly: We have had customers come to us relative to discussions looking for multiple launch opportunities. They would approach us and say for example, “We are going to launch perhaps five satellites over the next few years. Is there something we can do with you in terms of launching of all of those satellites?” I would certainly think it could make sense for us to look to enter into those types of long-term agreements. I think customers would be very comfortable with doing this with the Delta 2 rocket in particular. … In the dealings we have had with customers, there has been many times when they have wanted to spread their satellites over many launchers. This may be due to launch slot availability or the inherent risk of business. You may not want to assign all your satellites to one launcher.
Via Satellite: With more players looking to get involved in this market, what impact will this have on established launch providers?
Heinly: I think we definitely have to take them seriously. Perhaps not this decade, but we will have to consider them eventually. As you know, many satellites are being constructed with U.S. components, and that has slowed down the ability to import those into places like China and launch them from there. I don’t see it as something we have to think about too much either this year or next, but they could definitely be players in the market sometime in the future.
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