Rob Peckham, CEO, Sea Launch

 

Via Satellite: How would you assess the state of launch prices?

Peckham: Every time I pick up an industry periodical, I chuckle when I read that launch prices are going through the roof. Launch prices are just going back to where they were eight years ago, and we are not there yet. At the same time, my trusted partners in the CIS — Ukraine and Russia — have seen a huge measure of inflation in not only their labor but their raw material costs as well, so the costs for us in particular — and I imagine this applies to our competitors — are going up almost as fast as the prices are going up.

Via Satellite: Do you think the way FSS operators do deals with launch service providers will change?

Peckham: SES is very innovative in the way they think and operate. Do I see other companies doing that? One of the pieces of this is the consolidation of the end user consolidation. That has not only strengthened our market, but I believe it has legitimized it, knowing they are going to be there tomorrow. They have more buying power so they can buy more satellites that they need to launch. We were an active participant in the SES procurement process; one that had been ongoing for a number of years.

At the end of the day, the Sea Launch Company was not willing to provide the schedule flexibility that SES so coveted because of our commitment to the whole breadth and spectrum of customers. That said, SES is going to have a lot more launch requirements and opportunities than they signed up for. I put Intelsat in that same position of having the need for multiple launches. Will Intelsat pursue the same road? Perhaps, but only if it makes sense.

Via Satellite: Considering SES is a huge customer, why would you not to provide them with the launch flexibility they desired?

Peckham: There would have been little if any room for other companies on our manifest. That is not to say that we do not have a good relationship with SES. We talk all the time. I am confident we will be launching satellites for SES well into the future. We chose not to impact the commitment we have made to our customers and what our future expected commitments will be. One of those customers is SES, and we will keep the commitments we have made to them. We are at a place with SES in which we are comfortable.

Via Satellite: What was your reaction to the recent Proton launch failure?

Peckham: Launching is a risky business. Anytime there is a failure in this business it has an impact on everyone involved — the satellite manufacturers, owners, launch services providers, insurers, etcetera. With the growing demand for launch services at this time and — as with the Sea Launch failure in January — this Proton failure is challenging for companies that need to get satellites to orbit in a timely manner. This failure is sending many of us back to the scheduling table, but again, it's the nature of the business. Any failure is a very tough thing.

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