Arianespace taps into Asia-Pacific
By Christiani Tumelap
EVRY, France (JP): France's Arianespace remains upbeat about the market for a commercial satellite launch business in Asia Pacific despite the economic crisis that has rocked the region for the last two years.
Arianespace's director of customer service, Baard Eilertsen, said the region had contributed quite a significant number of contracts to Arianespace's business even during the crisis.
"Of the 41 satellites registered in our current order book for immediate launch, nine are owned by Asia-Pacific countries," he announced last week during a media conference at Arianespace headquarters in Evry, France.
The other satellites include 14 from Europe, 12 from an international consortium and three from the United States.
The nine satellites from Asia Pacific comprise four from Japan and one each from India, Indonesia, Japan, South Korea, Laos and Thailand.
Indonesian Telkom-1 satellite, owned by state telecommunications company PT Telkom, and South Korean Koreasat-3 satellite, owned by Korea Telecom, are scheduled for launch on Aug. 4 and Aug. 26, respectively.
Baard said Asia-Pacific was the second largest market for his company, contributing 36 out of the total 199 launch orders booked by Arianespace from its establishment in 1980 to June of this year.
He said the Asia-Pacific market was even larger compared to other regions such as Europe, which concluded 30 contracts, the United States, 21, and France, 16, over the past 19 years.
Baard acknowledged the economic crisis had unquestionably affected many countries in Asia-Pacific and other regions as well, forcing them to delay or cancel important projects, including high technology and costly ones like satellite procurement and launches.
"The number of satellites registered to be launched yearly declined from 19 in 1996 to 17 in 1997 and to 14 in 1998. The number may decrease further this year."
He added, however, Arianespace remained upbeat that the satellite business, especially in the Asia-Pacific region, would eventually recover along with budding signs of economic recovery in several Asian countries.
"We believe our satellite business in the region will keep on growing because these countries need satellites as the best and most efficient instrument to fulfill the demand for better telecommunications systems and services," he said.
Baard said the company's keen attention to the Asia-Pacific area was reflected by the establishment of two representative offices in Tokyo and Singapore.
Besides its headquarters in Evry which handles marketing for Europe, Arianespace also operates a subsidiary office in Washington to tap the North American market.
Arianespace is a consortium of 53 firms from 12 European countries, of which French companies together hold the biggest share of 55.54 percent, followed by German firms with 18.58 percent, Italian 8.11 percent and Belgian 4.17 percent.
The remaining stocks are held by companies from the United Kingdom, Switzerland, Spain, Sweden, the Netherlands, Denmark, Ireland and Norway.
Arianespace conducts launch operations from its launch site at Europe's Spaceport in Kourou, French Guiana. It does marketing for satellite launch services and acts as the prime contractor for the industrial production and financing of all Ariane rockets deployed to launch the satellites into orbit.
The company booked net sales of Fr7.12 billion in 1998, up from Fr6.56 billion in 1997.
The company has predicted Asia-Pacific projects will contribute around $488 million in sales this year, nearly half of the total turnover it expects.
"This year, between six and seven satellites are scheduled to be launched on Ariane 4 rockets and another three satellites on Ariane 5."
He said 14 Ariane 4 missions and three Ariane 5 missions were prepared to accommodate the entire satellite launch program this year.
"For the year 2000, we plan to have five launch missions on Ariane 5 and between nine and 10 missions on Ariane 4," Baard added but he declined to elaborate. (cst)