The USA and international competition in space transportation

This article discusses the crisis facing the USA in the formulation of its space transportation policy, within the context of its overall national space policy. The author examines developments in international space transportation from 1982 to 1992, and the failure of US policies to meet foreign commercial competition in space launches. Two goals have emerged from the US policy debate: to achieve assured access to space, and to reduce the costs of sending payloads to orbit. Both goals need to be faced within the context of a wider commitment by government and private industry to space investment.     

Rebuilding US launch capabilities

Attempts to rebuild US commercial launch capabilities through stimulating private industry will be constrained by the fact that free-market competition does not really exist in the space industry. As the worldwide supply of launch vehicles grows, the policy now offered by the US government is only likely to fragment the US space launch vehicle industry. The author argues in favour of a proposal to establish a quasi-governmental corporation for space launches which would both safeguard the interests of government and commercial users and ensure that business acumen was applied.     

Federal tax incentives and financing for the reusable launch vehicle

Financing a very large new space transportation system is a major venture. It requires an initial investment of many billions of dollars and will be expected to perform successfully during its lifetime of at least twenty-five years. In the past, space systems of this magnitude have been funded, owned and operated by the government. Today, as the responsibility for opening and maintaining space systems is expected to shift from government to industry leadership, the reusable launch vehicle (RLV) presents the private sector with the challenge of finding ways of financing and building a system that will prove to be a successful private venture. The government, recognizing that it is a major customer of the RLV and that new technology must be developed for the RLV to work and to adequately reduce the cost of access to space, will fund some Initial technology development as well as provide some incentives for a private operator. This paper shows that using the current tax system's corporate investment benefits, coupled with a favorable debt financing arrangement, a profitable privately owned RLV system Is within the realm of possibility.     

NASA's integrated space transportation plan

Improvements in the safety, reliability and affordability of current and future space transportation systems must be achieved if NASA is to perform its mission and if the U.S. space industry is to reach its full potential. In response to Presidential Policy in 1994, NASA, working with our industrial partners, initiated several efforts including the X-33, X-34, X-37 and Advanced Space Transportation programs with the goal of demonstrating the technologies that could enable these goals. We have learned that emerging technologies will enable the needed advancements but that more development along multiple, competing paths is needed. We have learned that developing requirements diligently and in partnership with industry will allow us to better converge with commercial capabilities. We have learned that commercial markets are not growing as fast as projected earlier, but there are still possibilities in the near-term to pursue alternate paths that can make access to space more robust. The goal of transitioning NASA's space transportation needs to commercial launch vehicles remains the key aim of our efforts and will require additional investment to reduce business and technical risks to acceptable levels.     

Between heaven and earth: The legal challenges of human space travel

Since the first space object was launched into orbit in 1957, humankind has been engaged in a constant effort to realise ever more ambitious plans for space travel. Probably the single most important element in this ongoing evolution is the development of technology capable of transporting large numbers of passengers into outer space on a commercial basis. Within the foreseeable future, space will no longer be the sole domain of professionally trained astronauts or the exceptionally wealthy.The prospects for both suborbital and orbital private human access to space give rise to some interesting and difficult legal questions. It also opens up an exciting opportunity to develop an adequate system of legal regulation to deal with these activities. The existing international legal regimes covering air and space activities are not well suited to large-scale commercial access to space, largely because they were developed at a time when such activities were not a principal consideration in the mind of the drafters. The lack of legal clarity represents a major challenge and must be addressed as soon as possible, to provide for appropriate standards and further encourage (not discourage) such activities.This article will examine some of the more pressing legal issues associated with the regulation of space transportation of passengers on a commercial basis, seen in the light of Article 1 of the Outer Space Treaty of 1967, which states that the ‘exploration and use of outer space […] shall be carried out for the benefit and in the interests of all countries […] and shall be the province of all mankind’. An appropriate balance must be found between the commercial and technological opportunities that will arise and the principles upon which the development of international space law have thus far been based.     

Exploration of CASC's Commercial Space

China's commercial space activities started from the launch of Asiasat-1 satellite by a LM-3 launch vehicle on April 7, 1990. As the leading force in China's space industry, CASC has been committed to commercial space for nearly 30 years. The article describes CASC's advantages and activities in commercial space sector, as well as outlook for CASC commercial space development. The author concludes CASC is willing to coordinate and cooperate with state-owned and private companies and will create a new pattern for commercial space, opening up a new industry for space development and achieving more splendid achievement.     

Space product development: bringing the benefits of space down to Earth

In fulfilling the National Aeronautics and Space Administration's (NASA) responsibility to encourage the fullest commercial use of space the Space Product Development (SPD) Program, within the Microgravity Research Program Office (MRPO) located at the Marshall Space Flight Center (MSFC) in Huntsville, Alabama, is managing an organization of Commercial Space Centers (CSC's) that have successfully employed methods for encouraging private industries to exploit the benefits of space-based research. Unique research opportunities of the space environment are being made available to private industry in an effort to develop new, competitive products; create jobs; and enhance the country's quality of life. Over 200 commercial research activities have been conducted in space by the CSC's and their industrial partners during the last several years. The success of this research is evidenced by the increasing amount of industrial participation in commercial microgravity research and the potential products nearing marketability.     

Developing new launch vehicle technology: The case for multi-national private sector cooperation

Space is now a global business, yet the cost of getting to space is still high. Developing new launch vehicles that are cheaper, safer, and more reliable is the key to both rapid commercial growth and to more and better government uses of space. However, the R&D process leading to new launch vehicles is expensive and technically challenging; the past 50 years have seen many government development programs, but no major technological breakthroughs. Perhaps, it is therefore time to think about other ways of developing new launch vehicles. The best expertise in this field resides primarily with private companies and is spread across many actors and nations. A consortium led by space firms might be a better approach to opening up space in the 21st century. Governments will have to develop new policies treating space as though it were a commercial industry, in particular, relaxing export trade restrictions wherever possible. Issues of dual-use may be outweighed by the rapidly growing widespread availability of launch capabilities. Since new launch vehicles will require large up-front R&D expenditures, government support will continue to be needed to supplement private capital funds. Contributions to this effort should be international. However, difficult it might be in today's security conscious environment to reorient government policy, doing so may offer the most efficient and successful way to break the technological and economic barriers to more reliable access to space.     

Improved space safety for astronauts

The 2003 Columbia accident demonstrated that spaceflight remains a risky and dangerous human endeavor, yet there have been few ‘unofficial’ investigations into astronaut safety. This report summarizes the findings of one such study by George Washington University's Space & Advanced Communications Research Institute—e.g. that simplicity of design may be better than complexity, that cargo missions would be better carried out robotically and that all new space transportation systems should be developed to common international standards—before examining ways that international cooperation can advance the cause of space safety. In establishing future space safety standards input from a wider range of participants (industry, universities and private research institutes, as well as space agencies, etc.) will need to be sought.     

Redefining safety in commercial space: Understanding debates over the safety of private human spaceflight initiatives in the United States

In 2009 President Obama proposed a budget for the National Aeronautics and Space Administration (NASA) that canceled the Constellation program and included the development of commercial crew transportation systems into low Earth orbit. This significant move to shift human spaceflight into the private sector sparked political debate, but much of the discourse has focused on impacts to “safety.” Although no one disputes the importance of keeping astronauts safe, strategies for defining safety reveal contrasting visions for the space program and opposing values regarding the privatization of U.S. space exploration. In other words, the debate over commercial control has largely become encoded in arguments over safety. Specifically, proponents of using commercial options for transporting astronauts to the International Space Station (ISS) argue that commercial vehicles would be safe for astronauts, while proponents of NASA control argue that commercial vehicles would be unsafe, or at least not as safe as NASA vehicles. The cost of the spaceflight program, the technical requirements for designing a vehicle, the track record of the launch vehicle, and the experience of the launch provider are all incorporated into what defines safety in human spaceflight. This paper analyzes these contested criteria through conceptual lenses provided by fields of science and technology policy (STP) and science, technology, and society (STS). We ultimately contend that these differences in definition result not merely from ambiguous understandings of safety, but from intentional and strategic choices guided by normative positions on the commercialization of human spaceflight. The debate over safety is better considered a proxy debate for the partisan preferences embedded within the dispute over public or private spaceflight.     

Commercialization of space activities: Legal requirements constituting a basic incentive for private enterprise involvement

Commercialization of space activities requires a legal framework for private investors and entrepreneurs in order to promote and develop this sector of industry into a fully-fledged commercial enterprise. Apart from the already existing international public legal framework of space law, rules should be created to provide a level playing field for all interested parties. These rules should point to transparency of risks and liabilities and liberalization of the various space market segments. Another legal instrument will be that of dispute resolution among participants in the arena of space activities. For the more distant future the Moon Agreement should be reassessed in the light of resources exploration, management and exploitation against the background of private enterprise involvement.     

Space: a challenge for Europe

This Viewpoint presents an industrial perspective of the policies needed to support and advance the capabilities and competitiveness of the European space industry. It is argued that Europe needs a coordinated longterm space policy to help create the climate in which industry can invest in and exploit space. Europe must also accelerate the development of advanced technology products and services, improve its competitiveness in applications and commercial markets including launchers, and secure fair and reliable international partnerships in in-orbit infrastructure and manned space activities. To this end European governments are urged to acknowledge the increasing political, economic and military importance of space and their continuing governance of space activities, and to establish mechanisms that promote industrial competitiveness; the development of the commercial sector; autonomy in key technologies; and international partnerships which are fair and affordable.     

The US national space transportation policy: issues for congress

Below is a summary of what was to be the first in a series of reports produced by the Office of Technology Assessment (now defunct) on policy for the USA's future space transportation technology and industrial base. It examines the Clinton Administration's 1994 National Space Transportation Policy and supporting implementation plans and raises and analyses such issues as conflicts and redundancies within NASA and DoD space transportation development programs; competition and cooperation with foreign launch vehicle and component providers; US government limits on the conversion of long-range missiles to space launchers in the face of Russian activity in this area; and the effectiveness of Administration efforts to include the private sector in space transportation decision making. Some issues not covered in the Policy are also discussed.     

Rethinking public–private space travel

On May 24, 2012 SpaceX's Dragon capsule was launched and in doing so became the first commercially built vehicle to berth with and carry cargo to the International Space Station (ISS). It successfully completed its mission and returned to the Pacific Ocean on May 31, 2012.¹ The docking of Dragon represented a historic moment where a commercial enterprise managed to achieve that which had previously only been accomplished by governments. “In the history of spaceflight – only four entities have launched a space capsule into orbit and successfully brought it back to Earth: the United States, Russia, China, and SpaceX”.² While this is a monumental accomplishment for private industry, we cannot ignore the value of public–private partnerships and the role that government played in enabling this incredible achievement.In this paper I will examine how public–private partnerships are enabling the development of the commercial space industry, viewed through the lens of the Rethinking Business Institutional Hybrid Framework put forward by University of Oxford professors Marc Ventresca and Alex Nichols in their Rethinking Business MBA course. I intend to demonstrate that the NASA versus Commercial Space argument is a false dichotomy and that only by working together can both sectors continue to push the boundaries of space travel and exploration. I plan to do this by first discussing how the NASA-SpaceX partnership came about and the reasoning behind it. I will then explore what a public–private partnership (PPP) is, as compared to other government privatization schemes, and explain why Space Act Agreements are significantly different from anything done previously. I will then analyze the impact of these agreements and outline their benefits in order to demonstrate the value they create, especially in areas of mutual value creation and economic development.     

Future spacelift projections

In 1996 the NASA Advisory Council asked for a comprehensive look at future launch projections out to the year 2030 and beyond. In response to this request NASA sponsored a study at The Aerospace Corporation to develop long-range space transportation models for future commercial and government applications, and to analyze the design considerations and desired characteristics for future space transportation systems. Follow-ons to present space missions as well as a wide array of potential new space applications are considered in the study. This paper summarizes the space transportation system characteristics required to enable various classes of future missions. High reliability and the ability to achieve high flight rates per vehicle are shown to be key attributes for achieving more economical launch systems. Technical, economic and policy implications are also discussed.     

Future spacelift projection

In 1996 the NASA Advisory Council asked for a comprehensive look at future launch projections out to the year 2030 and beyond. In response to this request NASA sponsored a study at The Aerospace Corporation to develop long-range space transportation models for future commercial and government applications, and to analyze the design considerations and desired characteristics for future space transportation systems. Follow-ons to present space missions as well as a wide array of potential new space applications are considered in the study. This paper summarizes the space transportation system characteristics required to enable various classes of future missions. High reliability and the ability to achieve high flight rates per vehicle are shown to be key attributes for achieving more economical launch systems. Technical, economic and policy implications are also discussed.     

Commercial spaceports — a window of opportunity?

The feasibility of building commercial spaceports is being actively investigated in several countries. Potential benefits include boosting economic development and assisting the commercial launch industry. This report finds, however, that commercial spaceport development will probably not be capable of generating a large enough return on investment to attract private sector involvement without significant government assistance. It is also unlikely that the market for large launch vehicles will support spaceport development; however, small satellites may offer better prospects.     

Launch vehicles and the commercial uses of outer space : The underlying economic issues

This article discusses the economics of the demand for and supply of launch vehicles. Demand is derived from both commercial and governmental uses of space, while the supply of launch vehicles is determined by governmental needs which are rarely based on economic criteria alone. Multipurpose launches such as the Space Shuttle should be viewed as a national resource instead of a profit-seeking venture. Because of the mixing of government and private uses for space vehicles, traditional economic analysis provides only a starting point for policy decisions.     

Shaping a legal framework for the commercial use of outer space: recommendations and conclusions from Project 2001

Private and commercial activity in outer space still poses challenges to space law and policy. Within ‘Project 2001’—a legal research project by the University of Cologne's Institute of Air and Space Law and the German Aerospace Center (DLR)—six international expert working groups examined international and national laws, in order to identify gaps and, where necessary, propose improvements to the present legal framework for private space activities. The results were presented and discussed at an international colloquium in May 2001 in Cologne, Germany, where final conclusions have been drawn. This report presents a summary of the project's work and main conclusions, which are documented in full in a comprehensive book to be published in May 2002.