NEWTOWN, Conn. - The Ariane 5 is one of the primary launch vehicles for commercial geosynchronous communications satellites. Other major players in the commercial market include the ILS Proton and the SpaceX Falcon 9. The Ariane 5 also provides launches for European military and civil government satellites and spacecraft.
Despite its strong position in the market, the Ariane 5 faces new competition that could threaten its standing. Despite a June 2015 launch failure, SpaceX competes strongly on price, making an attractive option for commercial satellite operators.
In response to growing competition, European nations have introduced new proposals to reduce launch costs for satellite operators using Ariane launch vehicles. At one time there was a debate between Germany and France regarding the path to pursue to improve competitiveness. Germany wanted to develop an upgrade to the Ariane 5, called the Midlife Evolution (ME) featuring a new upper stage to increase lift capability. France proposed forgoing an upgrade to the Ariane 5 in favor of, and developing an entirely new launch vehicle, called the Ariane 6.
Ariane 5 contractors are also working to lower prices to be more competitive. The Ariane 6 could have less widespread manufacturing. While that would reduce work -share in European countries, it would centralize production, creating more efficiency. In addition, Airbus and Safron have created a joint venture to build the next- generation launch vehicle, which they believe will improve vertical integration and therefore improve prices.
While ESA funded both an Ariane 5 ME and Ariane 6 development for a time, the two camps have agreed to drop the Ariane 5 upgrade program, and focus on the Ariane 6. Despite this decision, Ariane 5 deliveries will continue into the next decade as the Ariane 6 completes development. The Ariane 5 ECA will continue to be a major player in the commercial launch market. The Ariane 6 is expected to make a first flight in 2021, but will not begin operational duty for some time after that, due to the complexity of developing a new launch vehicle.
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