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Aviation History
1985
1985 - 0101.PDF
International Satellite Directory FLIGHT DATA Compiled by Graham Warwick Commercialisation of space is not proving easy. Several US companies have abandoned ambitious plans to operate direct television broadcast satellites. Others with plans to provide business links with high-power spacecraft have several obstacles still to overcome. Space hardware does not come cheap, that is the problem. Companies seeking to break into the satellite business must find massive amounts of finance. An accident on launch and years of work is wasted. Insurance will cover the cost, but a spate of satellite losses in the past year have hiked insurance premiums. If a company wishes to launch its satellite by Ariane, for example, the premium is likely to be 25 per cent of the cost of the satellite, the launch, and any other extras the company wishes to add—perhaps $25 million. This is twice what would have been paid a year ago. More and more underwriters are drop ping out of satellite insurance. Payouts of $300 million on an income of $150 million in the past year are hardly any incentive to stay in the business. Competitive rates are becoming more difficult to find. More seriously, there is now a possibility that full insurance cover cannot always be arranged. Any company seeking financial backing for a satellite project will be required to demonstrate adequate insur ance cover, which may not be available. The past year's events are certain to have an adverse effect on plans to commercialise space, including the latest US move to allow independent operators to compete directly with the 109-nation Intelsat organisation by providing inter national links to the USA. Although President Reagan has protected Intelsat by limiting competition to business data- links (Intelsat traffic is 80 per cent voice), the prospect of competition is not welcomed by the organisation. But the competition may be some time in arriving if recent events are any indication. INSIDE THIS DIRECTORY Commercial Military Earth observation Weather Science Page 30 41 44 45 47 ^FLIGHT International, 12 January 1S85 29
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