Category Archives: Space

Political Commentary, Space

Griffin’s COTS Contradictions

Jeff Foust reports on the administrator’s testimony before the Senate:

“Do not confuse my desire for international collaboration for a willingness to rely on others for strategic capability,” he said in open remarks at a subcommittee hearing of the Senate Appropriations Committee last week. Dependence on Soyuz “is not an option we would choose, but it is where we are today. In fact, we must seek an exception to the Iran Syria North Korea Nonproliferation Act because we have no immediate replacement for the shuttle and no other recourse if we wish to sustain the ISS.”

Given that statement, you would think that Griffin would be interested in accelerating domestic commercial options like COTS that would lessen or eliminate an reliance on the Russians. Yet, in his comments later in the hearing, he was not that interested in pursuing a crew option for COTS (also known as Capability D) on an accelerated schedule.

Yeah, you’d think. But I suspect that he fears that if COTS is seen to be making too-rapid progress, it will jeopardize funding for Ares/Orion, by making them seem superfluous. Of course, the traditional argument is that they are designed for the lunar mission, whereas a station crew transfer capability wouldn’t have that additional capability. And Orion is supposedly not just for going back to the moon but for use in a Mars mission as well (though it is never explained what its role is in such a mission). I can’t believe anyone seriously believes that a Mars mission would be performed in a glorified Apollo capsule–it’s simply too small, and the crew would go nuts. If it’s meant as the means to return them to earth upon return to earth orbit, well, OK, but it’s pretty pathetic to think that, seventy years after the first lunar landing, we would still be returning people to the planet in a capsule on a chute (particularly if they end up with a water landing).

Of course, the real danger is that we’ll get the worst of both worlds–a continuation of Ares/Orion, which are supposedly being built because they are necessary to go to the moon, but we drop the lunar mission from the policy, so they revert to simply replacing (or competing with) COTS crew capability. And unfortunately, as devoted Democrat Greg Zsidisin has discovered in a one on one, that seems to be exactly Obama’s plan. The only saving grace of it is that, in delaying the development by five years, it really means that the program will die. But it betrays a fundamental lack of understanding of the nature of space policy, and space hardware and development, on the part of Obama and/or his advisors. You can’t “delay” a program like this and have any hope that it won’t end up costing much more over the long run, particularly because you’ll lose many of the key personnel for it, who aren’t going to sit around twiddling their thumbs at no pay for half a decade while Obama solves the education problem. It’s really quite absurd. But then, most of his proposed policies are–one of the many reasons that he isn’t going to be elected.

As an aside, Jim Muncy said during the wrap-up panel last week in Phoenix that NASA has a bigger problem with the Iran Non-Proliferation Act than buying Soyuzes to replace Shuttle. Because the facilities are in the Russian segment, the ISS astronauts won’t even be able to use the potty if they don’t get a waiver, which could get pretty interesting on a six-month tour. The notion brought up the obvious jokes: “You’ll just have to hold it,” and “You should have gone before you launched…”

[Tuesday morning update]

Jon Goff has further thoughts:

…if you were a congressman or senator with a limited amount of money available, and you have two risky ventures to pick from to try and reduce the gap, what would you do? Would you place all your money on the one option where your money is going to be a relative drop in the bucket, and that even then has little or no chance of actually reducing the gap? Or would you invest at least part of your money in a much smaller program where it has a much higher probability of actually hastening the day when the US once again has manned spaceflight capabilities–and better yet, commercial manned spaceflight capabilities?

You do the math.

Unfortunately, the only math that interests most congresspeople is the number of jobs in their district or state, with “the Gap” a distant second place. Mike knows that, which is why he can get away with this stuff, or at least why he has to date.

Business, Space

More Propellant Depot Thoughts

8 Comments

Jon Goff has a wrap up of the issues (mostly technical) that came up in the panel discussion last Friday in Phoenix.

As he notes, there was little discussion of what other markets we can find than DoD and NASA. The problem is that until the capability is demonstrated, it’s going to be very hard to sell it to the conservative comsat industry. The nearest-term plausible private market that I can conceive of is Bigelow, if he still wants to do his lunar cruises. It would be interesting to put together a business model using Genesis modules swinging around the moon, and see if it’s greater or less than projected NASA Constellation needs.

Business, Space

The New Space Race

12 Comments

Jeff Foust has a story today on the current real space race (as opposed to the fantasy one between the US and China)–the new race for customers in the suborbital market. It’s basically a compilation of last week’s XCOR press conference announcement and this past weekend’s Space Access conference, both of which I attended. This to me is the key point:

“Quietly, this has turned into a horse race,” said conference organizer Henry Vanderbilt during a wrap-up panel at the conclusion of the Space Access conference. “There are a lot of people who could be the first to fly a passenger to suborbit at this point. Two years ago I’m sure the money would have been on Virgin Galactic. It isn’t necessarily so at this point.”

“What struck me about the events of this week was that we have finally, with all due respect, broken the mystique of Burt [Rutan],” Rand Simberg, an aerospace engineer and blogger, said. “He has had setbacks”–referring to the engine test accident last July that killed three Scaled Composites employees–“and, this week, now he has a competitor.” The growing awareness of companies other than Virgin “is going to be very good for the industry.”

“This perception of a horse race is probably a really, really good thing for investment,” said Joe Pistritto, an angel investor. “Ninety-nine percent of the people who could invest in this industry don’t know about this industry” but may start to learn about it as the find out about these competing companies.

If it is a horse race, who will win the ultimate prize: not just the first vehicle to enter the market, but the one that wins the market in the long run? The diversity of technical approaches, from the takeoff and landing techniques to the number of passengers, makes any predictions difficult. “If there’s four different operators flying people into space, their offerings are going to be a little different,” said Pistritto. “So you see an actual segmentation of the market around the experience you want, how much money you have, and where you are.”

What I meant about the “mystique of Burt” was the notion that the winning of the X-Prize was some kind of fluke, enabled only because the most brilliant aeronautical engineer in the world applied his genius to it. Many have used this as an excuse to denigrate the efforts of others building suborbital vehicles, which hasn’t made it any easier to raise money for such ventures.

Many seem to believe that it really takes the genius of a Rutan to build a suborbital vehicle. As evidence of this proposition, they point out that no other suborbital vehicles have been flown since 2004.

But in so doing, they display a fundamental ignorance of the nature of the technology and the requirements. There is no “one way” to skin that cat, and never was. Burt’s design was clever, and perhaps intrinsically safer, but it was not necessary, and there are other, better ways to do the job that are safe enough. It’s not at all clear that the SS1 approach is the best one for a commercial application, and if one includes in that the hybrid propulsion, it’s already caused delays (though those are partly due to Scaled taking on a project outside their area of expertise–they’re an aircraft manufacturer, not a propulsion house) in their development program, and it’s certain to result in higher operational costs and increased turnaround time.

The real point is that if only Burt could win the X-Prize, it wasn’t because he was the only guy smart enough to design a vehicle to do it. It was because he was the only guy with the reputation of being smart enough to be able to raise the money to do it. When it comes to space ventures, the hardest part is always raising the money. The technical challenges generally pale in comparison.

So, with schedule delays in SS2, now comes XCOR. XCOR has a reputation of its own, hard won over the past eight years, of underpromising and overdelivering. So when they have a (rare, almost unheard of) press conference announcing that they have the design and the cash to build a suborbital vehicle, with an endorsement from the Air Force Research Laboratory, the world listens, and suddenly it’s a real race.

Evidence that the mystique has been broken is this CNBC story by Jane Wells from last week, after XCOR’s announcement, with the hed “Branson And Northrop May Be Backing “Wrong” Rocket Man!”

Burt is no longer God, other companies are getting serious attention from both business journalists and investors, and it’s been a very good week for the new space industry and space age.

Science And Society, Space

The Evidence Continues To Mount

16 Comments

I remember when I first started blogging, over six years ago, it was considered quite controversial to state that being hit by extraterrestrial objects was a legitimate concern, and one in which we should invest resources to prevent. But over the past few years, evidence continues to accumulate that there have been significant events within historical times that, had the occurred today, could cause millions of casualties. For example, some researchers are now quite confident that if God destroyed Sodom and Gomorrah, He did it with an asteroid.

On the other hand, a half-mile-wide object would make a hell of a bang that should be pretty obvious from orbit today, so one has to be a little skeptical. I’d like to see how they arrived at that diameter.

Space

Sam on Suborbital

1 Comment

Virgin

It occurs to me that with hundreds of millions being spent on crewing Virgin’s air fleet that spending a few tens of millions to build and operate Space Ship Two might be justified on personnel policy grounds. Giving the Virgin airlines pilots a chance to go to an elite school to learn to be White Knight pilots or Space Ship Two pilots might make them happier, more productive workers who spread good cheer and promote good labor relations. The same could be true for customer and aircraft ground personnel. So the Virgin Galactic investment might make sense for labor morale and not just for marketing and to keep the owner happy.

XCOR

I like Lynx (see The Space Review this week). At $17 million, it needs operating profit of $4.25 million to achieve a 25% return for investors. I don’t think XCOR has been seeking debt financing (contrary to the philosophy of take the smallest possible risk) so strategic investors can invest with their heart and be happy seeking a slightly lower monetary return. $4.25 million assuming 1/3 going to the space line and 1/3 going to cost would leave 1/3 to pay investors so XCOR would need to capture $12.75 million/year of the market. At $100,000/flight that’s 128 flights or about 5% of their annual capacity assuming three vehicles and 50% up-time for each vehicle and 4 flights/day.

With some predicting a 15,000 seat market ($3 billion/year at $200,000 which is closest to EADS’s estimate) and Futron at 500 seats growing to thousands of seats over a couple of decades ending at about $700 million/year in 2021, XCOR’s required fraction of the market to achieve a 25% investor return is about 25% of seats or 14% of money given their initial price point in a 500-seat/year market 2% of the money in a $700 million/year market or 1% of a 15,000 seat market (0.5% of the money).

—

If either of these teams is to begin test flights in 2010 and service in 2011 or 2012, I’d look for announcements like “fully funded”, regulatory hurdles met, various announcements about engineering hurdles, then an actual test flight program. It would be nice if they gave a public timeline of minimum time from each event to first paying participant flight. I don’t think more secrecy than is necessary for mystery and buzz is beneficial with each team taking a different approach and offering a well-differentiated product that requires extensive disclosure to meet regulatory hurdles and attract customers.

Business, Space

Wrap Up

1 Comment

Joe Pistritto: We have a couple teams (Virgin and XCOR) that are planning to fly in a couple years, about the same time as the Shuttle is retired. At that point, the NewSpace industry will be the only way that Americans can get into space, and in that first year more people may fly into space on the new vehicles than have flown in space to date. At that point everyone in the country will have a better idea what this new industry does.

Henry Vanderbilt: Also, they’ll see that there is a horse race. A year or two ago it was assumed that Virgin would be first to market. That’s no longer the case.

Joe: There are going to be different types of experiences at different price points, and as the horse race becomes more clear, it will expose the business to a lot of potential investors who haven’t been paying attention up to now. This is good not just for investment, but for creating a supply chain of suppliers that are needed. Still thinks that this is an individual investor market. Venture funds can’t justify this investment in the current business environment. Can do it with their own money, but not someone else’s. For someone with their own money, there’s no industry that is more exciting than this one.

Henry: Not important who comes in first. Emphasis needs to be that there is competition and that we’re in for exciting times.

Muncy: Difference between spaceflight participants (passengers) and Russ Blink strapping on an oxygen tank and flying out of the atmosphere on an Armadillo vehicle. Markets are wonderful magical things. We have no idea what the possibilities are (who knew that someone would program Doom eventually when Bill Gates said 640K would be plenty). Smart guys in the military might figure out what to do with these things once they’re flying. NASA may want to replace the T-38s now that they’re not flying the Shuttle any more (I think he means Gulfstream), or they might want to practice lunar simulations.

Challenge is to figure out how to get customers interested beyond the tourist flights. It will be different flying in the back of SpaceShipTwo than flying in the cockpit of the Lynx. We’ll see what the market wants. Lord willing the market will want both, and other flavors. The good things about markets is that if you offer something out there of value, it will be rewarded. Thinking about package tours of all the vehicles: Grand Slam of rockets.

[Update]

At that point, I got pulled up to join the panel by Muncy, so I couldn’t blog it.

Anyway, another conference is history. More thoughts later.