February 11 is likely to be the key date this year for European satellite launch provider Arianespace. This is the date when we could finally see the long-awaited launch of the Ariane 5 ECA, a high-capacity launch vehicle that is able to carry payloads of up to 10 tons. The launch failure of the Ariane 5 ECA in December 2002 was a huge blow to Arianespace and it has taken more than two years for another potential launch. Jean-Yves Le Gall, CEO of Arianespace, told Satellite News that a successful launch of Ariane 5 ECA is “the single most important event for the company this year.”

Le Gall said, “We are preparing the next launch of the Ariane 5 ECA, which will be the biggest challenge for us at the beginning of the year. It is very important that we have a successful launch of Ariane 5 ECA. This will increase the performance of the company. It will also offer us increased flexibility, increased performance and better economy of the system. If the launch is successful, it will reinforce the company and we will be able to continue with our leadership within the sector. The bottom line should improve as a result.”

The successful launch would be an exclamation point in a year where the commercial launch service company is celebrating its 25th anniversary. Preparations are now well underway for the launch. Arianespace has announced the Launcher System Rehearsal for the Ariane 5 ECA heavy launcher took place on Jan. 12, as scheduled. This operation was a rehearsal for the entire launch countdown, including tests of all launcher equipment and ground facilities.

Plan B

When Satellite News spoke to Le Gall at the beginning of 2004, he was confident there would be a successful launch of the Ariane 5 ECA vehicle in 2004. However, this did not take place so the pressure is on for the company.

If the launch is successful, it will remove a huge weight off the company, although Le Gall would not be drawn on the impact of another launch failure.

He said, “Our year will really depend on the flight of the Ariane 5 ECA. I am very confident in its flight. We want to be able to put different vehicles in operation, so we have to work on that. It is scheduled to be launched on February 11. We are not expecting any more delays. If there was another launch failure, we have a Plan B, but I cannot tell you what that is.”

While all eyes will be on a successful launch of the Ariane 5 ECA, the company will hope to pick up its fair share of contracts in 2005. Le Gall said, “In terms of new contracts, it is very difficult to predict anything as the market is very volatile, but we expect to sign 4-6 contracts at least. We expect to keep around half of the marketshare. When I say, at least 4-6 contracts, we expect 12-15 contracts in total for next year.”

Le Gall admitted that 2004 was above expectations in terms of contracts. The company derives around 70 percent of its revenues from the commercial market, and 30 percent from the institutional market. He said, “It is very difficult to make predictions on how the commercial market will fare. I was pessimistic last year, but the year was very good. I am more optimistic this year, but it is a difficult market to predict.”

Promising Start To 2005

The company has already made a promising start to 2005. It won a series of important contracts in the European institutional sector. It signed a deal with EADS Astrium to launch the British Defense Ministry‘s Skynet 5A and 5B satellites. The satellites are scheduled to be launched in the second half of 2006 and 2007. It also signed a contract with the French space agency CNES to launch two Pleiades Earth observation satellites. These will launch on the Soyuz launch vehicle, with the initial satellite due to be launched in 2008 and then the second satellite will be launched in 2009. The contracts have given the company an excellent start to 2005. With a number of launch vehicles, Vega, Soyuz and Ariane at its disposal, the company believes it will be well placed to cater for different requirements. Le Gall said, “The fact we have a number of different launch vehicles is a real plus in terms of the company’s overall flexibility.”

In terms of how many launches it hopes will take place this year, Le Gall said, “We plan to perform six launches of Ariane 5 and three launches of Soyuz in 2005, which is a substantial increase of activity compared to 2004. In 2004, we performed three Ariane 5 launches and one Sea Launch launch.”

The company is also adapting its operations to a different landscape where Private Equity firms have invested aggressively in satellite operators. Le Gall said, “In terms of financial discipline, there are some operators who are looking for immediate profits. Some of the other operators have more of a strategic mood, so we have in fact different approaches for different operators.”

–Mark Holmes (Mario De Lépine, Arianespace, e-mail, [email protected])