PanAmSat Corp.’s [SPOT] newest satellite, the PAS 8, last week became the company’s latest bird to malfunction due to a manufacturing flaw.

Space Systems/Loral [LOR] engineers are trying to identify the scope of an anomaly aboard the FS-1300 model bird they built that now prevent 25 percent of the satellite’s Ku-band transponders from operating properly. The PAS 8, launched Nov. 4, could spur PanAmSat to file an insurance claim of $20 million-$25 million if the damaged transponders cannot be fixed, said Vijay Jayant, a satellite analyst with New York investment firm Bear Stearns.

The PAS 6, another Space Systems/Loral-built FS-1300 model bird, incurred unrelated trouble last year after its launch that. Two of the PAS 8’s three Ku-band antennas were pointed improperly during manufacturing. If so, PanAmSat may have the grounds to file a lawsuit against PanAmSat. The PAS 8’s Southeast Asia and North East Asia beams are not pointed at their coverage area, possibly making 12 out of the 48 transponders on the PAS 8 useless, Jayant said.

The 24 Ku-band transponders have three movable beams, a Northeast Asia beam, of 6-12 transponders, a Southeast Asia beam, of 6-12 transponders, and an Australia Beam, with 0-12 transponders. The PAS 8 footprint serves the Asia-Pacific region and carries 24 Ku-band and 24 C-band transponders.

…PanAmSat Is Becoming A Haven For Sick Birds

PanAmSat has suffered malfunctions on a host of satellites during the past year, but virtually all of them except the PAS 6 last year and the PAS 8 had been built by its sister company, Hughes Space and Communications [GMH] (SN, Dec. 7). The biggest disaster occurred when PanAmSat’s Hughes-built Galaxy IV failed completely last May after its satellite control processor and backup processor went haywire. PanAmSat also has had battery problems aboard its PAS 5 and Galaxy 8I. The PAS 4 and Galaxy 7 birds continue to operate on backup satellite control processors following the failure of primary processors.

The latest failure involving the PAS 8 highlights quality control issues that seem to be plaguing Loral and all the other major satellite manufacturers, said Tom Watts, a satellite analyst with New York-based Merrill Lynch.