[Satellite TODAY 03-20-13] It was a unusally friendly launch services panel at SATELLITE 2013, featuring a mostly new set of leaders from Arianespace, International Launch Services (ILS), Lockheed Martin Commercial Services, SpaceX, Mitsubishi Heavy Industries and Sea Launch examining a cooperative approach to increase business and profitability for the entire sector. With increasing pressure from operators for lower cost access to space and a wider variety of options to reach orbit, the commercial launch industry has been tasked to adapt to its customers and identify strategies to solve new challenges presented by an expanding, diverse launch customer base.  

   Sea Launch General Manager Kjell Karlsen was the only executive that had sat on the previous year’s launch panel. It has been a tough start to the year for his company, due to its recent failure to launch the Intelsat-27 satellite. Sea Launch quickly bounced back, however, signing a recent deal with EchoStar Satellite Services to send a satellite into orbit on the Zenit rocket. 

   "We are in middle of an investigation [relating to launch failure of IS-27] and our Russian and Ukrainian partners are completing the investigation,” said Karlsen. “Everyone wants us to be a successful player in the market. We will be back in the market. EchoStar has flown three times with Sea Launch, We are fortunate to continue our discussions with them, and close a deal fairly quickly. This is a signal from EchoStar that they are bringing Sea Launch back into the fold.”

   Robert Cleave, president of Lockheed Martin Commercial Launch Services brought the law of diminishing returns into sharp focus when he responded to comments made by Intelsat CEO Dave McGlade earlier that day regarding the need for more competitive pricing for U.S. launch vehicle alternatives.

   We have some great news on the price point for commercial customers,” said Cleave. “There is a lot of hope and anticipation about what we might do, but our current price will become very competitive in the marketplace. We have not seen great returns over the last 10 years and I don’t see a slew of new entrants coming into the market. Every launch service provider needs a return on that investment, to ensure the reliability you need to pay for it; that is why prices have not come down.”

   Arianespace CEO Jean-Yves Le Gall did not appear on the panel this year, as he continues forward through the process of taking a leadership position at the French space agency CNES. Jacques Breton, senior vice president of sales and customers for Arianespace emphasized its plans to complete 10 launches this year, with six Ariane 5 launches, three Soyuz launches, and one launch on the small- to medium-lift Vega rocket.  

   Phil Slack, the new president of ILS, said his company is looking forward to a very active year, with about 10 to12 launches. While Slack confirmed that the company had no plans to expand its range of vehicles in the near future, he also pointed out that the deal between ABS and Satmex, and Boeing and SpaceX were an example of how operators are looking for a total low cost economic solution from the cost of the satellite through to the cost of the launch.

   Breton noted that one of the key advantages that the company has is its ability to attract new operators to the mix, which more than most, crave the reliability that Arianespace can provide. “In several regions of the world, we see countries and operators which now have the capability to put a satellite into orbit. They want a reliable launch service provider for this. New operators want to go with Arianespace. If you want reliability, you have to pay for it,” he said.

   Mitsubishi Heavy Industries (MHI) General Manager of Business Development Naohiko Abe addressed how Japan would play an increasing role in the international commercial launch sector with its H-2B rockets. Following the successful launch of its H-2B launch vehicle this past July, MHI will now handle all H-2B launches. MHI has been commissioned to launch H-2A rockets since 2007, but the H-2B can perform launches of large-size satellites that are double in weight.

   Sitting in for SpaceX President Gwynne Shotwell, senior vice president of commercial sales and business development Barry Matsumori said that reliability and value would be a critical step for the company. The company, which is set to launch key commercial satellites such as SES-8 and Thaicom-6 this year, aims to bring new business models that can excite the industry in 2013.