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European Space Agency 2023

#Space #Public vs. Private #Partnership


Abstract

The European Space Agency has announced that the first launch of its new Ariane 6 rocket will not take place before late 2023. The delay is a major setback for the agency, which had hoped to use the Ariane 6 to compete with Elon Musk's SpaceX launcher. The Ariane 6 is a new generation of rocket that is designed to be more affordable than the current Ariane 5 rocket. However, the development of the Ariane 6 has been plagued by delays and cost overruns. The latest delay is due to several factors, including the need to conduct additional testing and the impact of the COVID-19 pandemic and is a major blow to the ESA's efforts to maintain its dominance in the European launch market. SpaceX has been rapidly gaining market share in recent years, thanks to its low-cost Falcon 9 rocket. The Ariane 6 was supposed to be the ESA's answer to SpaceX, but the delay means that the ESA will now have to rely on SpaceX to launch some of its missions, especially five of them, that include two from the French military, as ESA's decision to use SpaceX's Falcon 9 rockets is a major symbolic victory for SpaceX. It is a sign that the ESA is now willing to work with SpaceX, even though the two entities have been competing for years. Partnering would be detrimental for the agency as operational, independence and cultural challenges arise. However, synergies between both entities could be found to make this partnership the most beneficial for the European Space Agency and SpaceX.

Detailed information

Case ID 23-1084
Published 2023
Industry OTHERS
Analyzed Area General management
Pages 38
Language English
Teaching Note Attached