Concept of commercial launching

If one assumes, that any paid off launch of space rocket is commercial, then according to this definition practically all the presently executed launches of launch vehicles worldwide can be classified as commercial ones. It is possible to call «non paid» the launches of Soviet launch vehicles manufactured at enterprises of the Ministry of General Machine-building, with satellites of the same ministry and executed within framework of the same ministry. In this case even the payments between ministries were absent and the term « commercial » relating to such launches is far to be pertinent. Launches for other ministries (for example. Ministry of Defense) required already interdepartmental accounts, i. e. turned out to be « commercial » ones. The Soviet scheme of «non-commercial» booster launches had been functioning and until now exists only in People's Republic of China. In any other country of the world, for each particular launching of satellite the order for a launch vehicle is placed at a manufacturing company. Hereby, the customer ordering a carrier rocket (be it. State's space agency. Ministry of Defense or private firm must forward an appropriate payment for launch vehicle.

Now, in Russia the commercial launches predominate, however, the cases of FOC transmission of rockets from military arsenals are still observed on behalf of the Russian Space Agency. Certainly, when the stocks of the Ministry of Defense's arsenals will be empty, such a practice successively will disappear.  In a narrower sense the term “commercial” is presently used, when it comes to launches of satellites belonging to private firms. However, in the space industry interests of private and state subjects sometimes are practically impossible to discern. There were cases wherein satellites have been built financed from the funds of private firms, but under the program of state space agency. And conversely, in a number of cases, the rocket developed and paid with funds from government agencies was transferred to private company for exploitation.

The Russia possesses a various stock of launch vehicles of all classes  Mainly there are "carriers" created in Soviet times. Among them are heavy rockets “Proton-K”, the launch vehicle medium class “Soyuz-U” and “Molnia-M”, and light launch vehicle “Kosmos-3M”. On the basis of ballistic missiles RS-18 and RS-12M “Topol” already in post-Soviet Russia have been developed light conversion spacecraft carriers “Rokot” and “Start”, respectively One should also mention Ukrainian launch vehicles “Zenit-2” (medium class), “Cyclon-2 and 3”, and conversion model “Dniepr” (all of light class). All the mentioned rockets are intended also for commercial launching.

Heavy launch vehicles

The first from Russian launch vehicles to enter the international market was “Proton-K”.. It became the most attractive for foreign customers. In order to promote this booster on the world market of special services has been established ELS joint-venture (International Launch Services), which now is the leader of commercial launchings. It offers for launching launch vehicles both of American (Atlas-2 and - 3) and Russian (Proton-K and -M) make. At present, the portfolio of ILS comprises contracts for launching 24 rockets Atlas (for a total sum of 2,14 mlrd dollars) and 19 “Protons> (1,41 mlrd dollars). Hereby, the enterprise achieved its first goal claimed when having been created in June 1995: ILS has taken the first position in volume of contracts ahead of its principal competitor - Arianespace (3,42 mlrd dollars) and such a giant, as Booing with rockets « Delta-2 and -3 » was left behind (respectively 48 and 17 launches worth a total sum of 2,055 and 1, 31 mlrd dollars).

«Proton -M» proved to be a launch vehicle, which managed right away to meet successfully conditions of international market. It is sole among Russian rockets to achieve the task of putting communications satellites on a geostationary orbit (HST; the altitude of this orbit, 36 000 km, allows to fix satellite on the constant point above the equator, that facilitates the orientation thereupon of customers' antennae). The task of putting Soviet satellites on HST has been achieved already in 1975 by “Proton-K”.. The same task is being achieved now also for foreign customers.

Manufacturer of “Proton-K” - State Scientific-industrial Space Center «Khrunichev» - had right away discarded a dumping policy and fixed relatively high prices for its services. The price of one launch of “Proton-K” varies within limits 65 to 80 million of dollars. Using “Proton-K” already 12 commercial launches were executed. And although one of them was unsuccessful (in December 1997 the satellite had not been put on the designed orbit because of failure of the accelerating block constructed by RKK «Energia»), the launch vehicle continue to be a success on the market: in 1999, 11 launches from the Baikonur space base (Kazakhstan) are planned yet

The orders filed today on launches of this rocket, taking into account Russian launches, secure for the enterprise a coverage of the total industrial capacity for the period ending in 2001. Because the demand for launches of telecommunications satellites is bigger than the offer, further growth of order number on launches is expected Therefore, the Khrunichev center plans to increase the output of its rockets manufacturing, and in 1998 were made the industrial investments of the 06 million dollars value, thereof 60 million dollars the Center brought from its own funds and 36 million dollars were allocated by ILS.

In order to keep ahead of its foreign competitors, the Khrunichev Center is carrying out now the modernization of to augment its carrying capacity without detriment for reliability decrease. The measures already adopted have provided for the rise of engine power of the first stage by 7 percent. In summer 1999, the first testing launch of “Proton-K” with new accelerating block, (the fourth stage) “Briz-M”, should take place. The installation of this block will permit increase the mass of launched satellites. The Krunichev Center expects to have “Briz-M” more reliable, than the block «DM-2» used presently, made by RKK “Energia” Korolev (only in 1996-97, this block had three failures). And in 2000, would take place the first launch of completely modernized “Proton-M”, which shall be able to put on orbit the heaviest among existing advanced satellites, as well as to carry out the launches simultaneously of two satellites of the kind being currently launched with “Proton-K”.

Sea Launch Project

«Zenit-3SL», Russian-Ukrainian rocket can in the nearest future become a competitor of “Proton-K”.. 70 % its components (in particular the engines and the accelerating block DM-SL) are being manufactured in Russia, but assembling of launch vehicle is carried out in Ukrainian town – Dnepropietrovsk. The rocket has been developed within program “Energia-Buran”. For this reason, the side block of “Energia” rocket has been equipped with the second stage. Such a launch vehicle, using in both stages kerosene as fuel and liquid oxygen, would be able to put on low orbits 13,7 ton loads. Project has been developed in Dniepropetrovsk KB “Yuzhnoye”.. The rocket manufacturing has been mastered by the Yuzhnoye machine-building plant in same town. Two launchers have been built in Baikonur space base for “Zenit-2” launching.

As first useful loads of launch vehicle “Zenit-2” were used military intelligence satellites and civil installations for prospection of Earth natural resources. Gradually, Ukraine began to offer «Zenit-2» also for commercial launches Originally, as a supplementary load micro-satellites have been used. Thus, in July 1998, “Zenit-2” for the first time put on orbit the Russian satellite for Earth remote scanning, “Resurs-01”, and simultaneously five micro-satellites belonging Australia, Germany, Israel, Thailand and Chile. The total amount of the contract on launching this “mix” made up 720 thousand dollars.

During 13 operations years, “Zenith” proved to be an extremely unreliable launch vehicle: from 31 launches held, 8 were unsuccessful. The last failure in September 1998 was a very blow to the prestige of Ukrainian launch vehicle: because of “Zenit-2” failure, 12 systems of satellite low-orbit telecommunication Globalstar could not be put on orbit. This launch was paid 30 million dollars.

Since any broad utilization of “Zenit-2” in Russian space programs is impossible because of Ukrainian origin of this launch vehicle, KB “Yuzhnoye” found a successful solution of this situation by creation of international project. Together with American company Boeing Commercial Space, Norwegian Ship-building company Kvaemer S.A. and Russian RKK “Energia” NPO “Yuzhnoye” created on the 4 May 1995 a joint-venture Sea Launch in order to carry out commercial launches of «Zenit-3SL» launch vehicle version from a floating platform on Pacific Ocean. The first successful launch has been held in March 1999. Sea Launch has already signed the contracts for launching 18 satellites during 5 years from floating launcher for a total of 1,25 mlrd dollars.

However, recently, Boeing, a principal “locomotive” of the program, has cooled the enthusiasm for the project Sea Start. Lastly, after the fusion with McDonnell Douglas, it has to its disposal the rockets of “Delta-2 and – 3” family. Moreover, Boeing is developing a crucially new series of modular launch vehicles “Delta-4”, which are assembled from unified blocks and, depending on completion variant, will be of light, medium or heavy carrying capacity. Despite the success of the space launch of 4,5-ton DemoSat on “Zenit-3SL” in March of this year, due to Boeing's separate plans, now Sea Launch is considered rather as experimental program allowing to obtain new technologies, than commercial one, capable to generate essential profits.

Medium launch vehicles

Amarket of commercial launch vehicles of middle class is for a while few mastered. Its main share is detained by satellites of low- and medium-orbital systems of global telecommunication. This business sphere is also beginning to produce profits, and this fact is attracting attention of state organizations and private companies. Moreover, the medium launch vehicles can also be used for putting on orbit not only a principal satellite but also accompanying commercial loads, for example, micro-satellites.

In recent years, has appeared one more business sphere, in which are used launch vehicle of medium class. These are manned space flights. Such form of business activity is practiced in Russia with spacecrafts “Soyuz”.

Russia disposes, in the category of medium launch vehicles, of the rocket family having good references, created on the basis ofP-7A ballistic missile. First of them is three-stage “Soyuz-U” capable to put on low orbit 6900 kg loads. To the same family belongs the four-stage launch vehicle “Molnia-M”, capable to put satellites of 1,9-t max. mass on strongly elongated orbits. All the launch vehicle of this family are manufactured by the State scientific-industrial space rocket center “TsSKB-Progress” (Samara). There are still two launchers in the space base Baikonur and three - in Plesetsk space base (Arkhangelsk region) for launching these rockets.

The first commercial rocket launch of this series took place on 17 March 1988. The launch vehicle of earlier model “Vostok” has orbited the Indian satellite designed for remote earth scanning, IRS-1A, for 7,5 million dollars. However, the worth of this contract has been specially undervalued in order to attract foreign customer. The IRS-1C launch on the rocket “Molnia-M” cost already 12,8 million dollars. In 1996, the P-7A rockets marketing was carried out by French within framework of joint-venture Starsem, to which belong the center “TsKB-Progress” (25% of shares), the Russian Space Agency (25%), French Aerospatiale (35%) and Arianespace (15%). Now, Starsem has the contracts for 8 launches of “Soyuz-U” rockets for the total of 310 million dollars (first three launches of “Soyuz-U/Ikar” were successfully executed in February-March). On the average, one launch of “Soyuz” is estimated at almost 40 million dollars.

With the help of launch vehicles “Soyuz” Russia is carrying out “commercial” manned flights. The prices are not fixed by launch vehicle owners, but by owners of transport ships “Soyuz TM” and station “Mir” - RKK “Energia” Korolev. The prices are relatively low. For example, a disclosed price of 179-day flight of European spaceman Thomas Wrighter in the station “Mir” in 1995-96, was 69 million dollars. For 16-day flight of French spaceman in 1997, the space agency KNES paid “Energia” 74 million francs (13,7 million dollars). Six subsequent long term space missions of American astronauts (1996-1998) of the total duration about two and half year cost NASA 480 million dollars. However, the astronauts were transported to “Mir” by American shuttle, not by “Soyuz” spaceship.

“CycIon”

In the first half of 90's, Ukraine was actively promoting on the international market commercial launches of its rockets of medium class “Cyclon” . This series of rockets, as also many other Russian launch vehicles, has been developed from the ballistic missile P-36. Such a reasonable form of conversion had been widespread in the USSR already in the years 50-60. A conversion design of the military into a space rocket is carried out by Dniepropetrovsk KB “Yuzhnoye”, and the manufacturing has been mastered by Yuzhny machine-building plant. The two-stage version of launch vehicle is known as “Cyclon-2”.. The first launching took place on 6 August 1969  All the rocket launches have been carried out from the space base Baikonur “Cyclon-2” has been exclusively used for launching military satellites. However, the launch in December 1995 comprised on the military satellite board an experimental instruments complex “Konus-A” having the mass 131 kg, designed for investigation of gamma-ray outbursts A further installation practice of accompanying equipment on “Cyclon-2” would be continued, but the production of “Cyclons” in Dnepropietrovsk was stopped by Ukraine. After exhausting the stock of rockets in the arsenal of the Defense Ministry, by the end of 1998, the crew employed at their launches in the space base Baikonur was disbanded.

The same fate was reserved also to the three-stage rocket “Cyclon-3”. Its launches were carried out only from Plesetsk space base. The first launch took place on 24 June 1977. The commercial application of “Cyclon-3” was wider. In July 1992, this rocket has orbited six satellites, two of them were “Goniets” satellites for a low-orbit communications satellite system. During launch of “Cyclon-3” in January 1994, simultaneously with satellite “Meteor-3” had been orbited German experimental micro-satellite “Tubsat-B”. When launch in August 1995, besides the Ukrainian satellite “Sich-l” the Chilean micro-satellite “FASat-Alfa” was put on the orbit, however, this time the subsatellite was not separated from basic satellite and its exploitation was impossible. Many times on basic satellites launched by “Cyclon-3” foreign experimental installations were installed. However, the stock of “Cyclon-3” has been completely exhausted, and due to this fact, the exploitation of this launch vehicle has been stopped.

Light launch vehicles

In recent years, on the market of commercial space launches appear in increasing numbers so-called micro-satellites. These are small apparatuses, weighting, as a rule, from dozens up to one hundred kilograms. However, thanks to wide application of recent developments of microelectronics, they may execute sufficiently various functions These are scientific devices investigating the Earth surface and near-Earth space, the universe, and small interplanetary stations and low-orbit telecommunication satellites. This last type of micro-satellites attracts the greatest interest of business circles presently. Several alternative low-orbit satellite systems providing radiotelephone or packet computer communication have been already developed worldwide. A market of such satellites is still being under development. Here, there are no definite leaders yet, although some circle of companies capable to take key positions in launches of small satellites is already beginning to emerge. Among them there is also Russian companies. The market of small satellites launches, as any new sector of business, is full of attractions for those, who are first to find a sector for themselves.

Among Russian space launch vehicles of light class, the first to come on the international market was “Kosmos-3M”. It was designed in the middle of sixties in the Krasnoyarsk Production Scientific Union of Applied Mechanics on the basis of ballistic missile 8K65 (designer - KB “Yuzhnoye”, Dnepropetrovsk). The manufacturing of “Kosmos-3M” is located in Omsk Industrial Plant “Polyot”. This two-stage rocket has been launched from three national space bases : Plesetsk, Kapustin Yar and Baikonur.

Although the first missile takeoff was executed in 1967, its commercial use began only in January 1995. Then together with the main useful load (satellite “Cycada”) two micro-satellite have been launched : American experimental telecommunication satellite Faisat-1, belonging to Final Analysis, Inc. (FAI) and Swedish scientific satellite Astrid developed by Swedish Space Corporation and Swedish Institute of Space Physics.

The cost of this launch was not disclosed then, but the FAI corporation of FAI has noted that the Russian launches are not at all “inexpensive”, especially if to take into consideration all the additional expenses incurred in connection with business relations with Russia. Their attraction consists not in price, but in high reliability of “Kosmos-3M” and possibility of offering short deadlines of launches. The representatives of Final Analysis stated that they would wish in particular to use “Kosmos-3M” also in exploitation and deployment of all the system composed of 26 Faisat satellites. The second satellite of this series has been launched in 1997. The price of one “Kosmos-M3” launch is 12-16 million dollars. Its marketing is carried out by WAC “Launching services” created by the Russian Space Agency. However, “Rosvooruzhenie” operating together with the Defense Ministry has intercepted from “Launching services” the initiative of commercial launches of “Kosmos-3M” on rights of legal launch vehicle owner (the serial manufacturing of this rocket was stopped because of the absence of financing in 1994 and the rockets launched now are taken from the arsenals of the Ministry of Defense). Until now, have been signed 4 contracts for use of this launch vehicle for satellites launching for a total sum of 60 million dollars. In December of last year, “Kosmos-3M” was successfully used for launching Swedish satellite Astrid from Plesetsk, which gave the beginning of «Rosvooruzhenie» presence on the market of launching services. In April, followed the second launch, this time from the polygon Kapustin Yar (Astrakhan region), where a payload were successfully transported the German satellite Abrixas and Italian MegSat.

Conversion projects

Though the rockets of light class can be very small launch vehicles, their commercial use can become as profitable, as the exploitation of the rockets of heavy and medium class. For quite understandable technical and economic reasons, today in Russia is observed a practice to create launch vehicles of light class on the basis of military ballistic missiles. A large number of orders can be expected for new Russian launch vehicle of light class “Rokot” created on the basis of ICBM PC-18. Its designer and manufacturer, State Space Scientific-industrial Center Khrunichev has advanced on a commonly used road and created in May 1994 the joint-venture Eurockot Launch Services GMBH for commercial exploitation. This time with affiliated firm of Daimler-Benz concern - Daimler-Benz Aerospace AG (DASA). The shares of Eurockot are distributed evenly between partners. Until now, three completely successful launches of “Rokot” from shafts on the space base Baikonur have been executed. Soon, the existing silo launchers on Baikonur space base will be supplemented by ground launching device on Plesetsk space base (it will be the re-equipped installation for rocket “Kosmos-3M”). The first start of from Plesetsk would take place late in 1999. According to plans of Eurockot, in 1999 will be made two «Rokot» launches, in 2000 - four. Beginning with 2001, the joint venture expects to carry out annually 6 commercial launches of this launch vehicle. Presently, Eurockot has the contracts for 3 launches worth in total 39 million dollars, as well as 23 launches booked, the contracts will be signed in the near future. Average cost of one «Rokot» launch is within range 12-15 million dollars.

The exploitation of launch vehicles of “Start” family need not any special launching devices to be created. This satellite launch vehicle inherited a mobility from its prototype - ICBM PC-12M “Topol”.. The rocket in container and the launcher can be easily transported to any point of the world The family was developed by the Scientific technical center “Kompleks-MIT”.. This independent enterprise was created specially for conversion of products designed by the Moscow Institute of Thermal Equipment.

Today, NTTs “Komplex-MIT” has developed two models of rockets: 5-stage «Start-1» (carrying capacity - 390 kg on low orbit), the flight tests have been successfully passed in March 1993, and 6-stage “Start” (600 kg on low orbit), the first launch of which in March 1995 was a failure. 250 thousand dollars worth Israeli satellite Gurvin-1 was installed on board and perished with the launch vehicle. After that failure, there were two more launches of this launch vehicle from Svobodny space base (Amur region), both were successful.

Characteristics of Russian launch vehicles used in commercial launches

L EO - low orbit

S SO - sun-synchronous orbit

G TO - geotransitory orbit

G SO - geostationary orbit

During the last launch of “Start-l” from the space base “Svobodny” in December 1997, the launch vehicle carried on the orbit the satellite Early Bird-1 of American company Earth Watch Inc. Although the satellite stopped its operation several days after launch, this was not because of the fault of launch vehicle. The financial conditions of this launch had not been disclosed. However, according to available data, NTTs “Kompleks-MIT” has one more contract for launch in 1999 of Swedish satellite Odin worth 8 million dollars. The marketing of “Start” launchers family is carried out by “Launch services” and “Rosvooruzhenie”.

Ukrainian-Russian rocket “Dniepr” (“Dnipro”) is created on the basis of the biggest and heaviest intercontinental ballistic missile ever deployed and put into combat readiness, PC-20 (according to Western classification - SS-18 Satan). It was developed and manufactured in the Ukrainian Dniepropetrovsk. Over 150 these rockets, which should be destroyed conforming to treaty -2, can be re-equipped to obtain the rocket “Dniepr”. This modification costing ca. 100 million dollars, was officially approved by the Ukrainian and Russian Governments in January 1997.

The marketing of “Dnieper” is carried out by joint venture “Kosmotras (Space Transport Systems). This enterprise was established in November 1997, with participation of the National Space Agency of Ukraine and Russian Space Agency. 50 % of the company capital belong to Ukrainian enterprises: Production scientific union “Yuzhnoze” including the Machine-building Plant “Pivdenmash” (former KB “Yuzhnoye”). 50% of the capital are Russian, belonging to joint-stock company “Rosobshchemash”, joint-stock company “Askond”, TsNIImash, Production scientific union of special machine-building and Production scientific union of transport machine building.

“Dnieper” launches will be executed from silo launchers in Baikonur space base. The first “Dniepr” launch was executed in April 1999. The useful load was the English satellite UoSat-12. According to unofficial data this launch cost in total 2 million dollars. Most likely, this is an advertising price in order to attract potential clients. Until now, none commercial contract on “Dnieper” launches has been concluded. In plans of “Kosmotras” there are ca. 150 launches of«Dniepr» until the end of 2007. If these launches will not take place, then up to 31 December 2007 all remaining rockets, in any way, are to be destroyed according to the treaty START - 2.