BREMEN, Germany — European government and industry officials say the policy of “georeturn,” which guarantees nations receive contracts in proportion to their investments, needs to be adjusted, particularly to make Europe’s launch industry more competitive.
In sessions at the Space Tech Expo Europe conference here Nov. 14, leaders of national space agencies and executives of major space companies said georeturn policies of the European Space Agency should be changed in unspecified ways, but argued against doing away with those policies entirely.
The concern, they said, was that those policies, which guarantee ESA member states that at least 85% of their contributions to programs will be returned in the form of contracts to companies in those nations, creates inflexibility that makes it difficult for European vehicles like the Ariane 6 and Vega C to be cost-competitive on the global market.
“Being more competitive starts today,” said Philippe Baptiste, chief executive of the French space agency CNES, in a conference keynote address. “We have to reduce costs. We are ready to simplify as much as possible the complex system in which we live. We can get rid of some part of the georeturn, at least for the exploitation of the Ariane 6.”
He said that some subcontractors on Ariane 6 have increased their prices by almost 60% after the first 15 vehicles. “It’s not acceptable.”
Pierre Godart, chief executive of ArianeGroup Germany, said he is locked into his suppliers because of georeturn policy. “I cannot choose my supplier. It is decided,” he said during a later conference panel. “Even if I have suppliers who are not performing, I cannot change them.”
He referred to the large price increases from suppliers that Baptiste mentioned. “I have zero chance to change them,” he said. “Then, I am blamed that Ariane is late, Ariane is too expensive.”
Marc Steckling, head of Earth observation, science and exploration…
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