The commercial satellite market may be improving, but currency exchange rates and a lack of government and corporate research and technology investment in spacecraft and launchers is undermining the European industry for the longer term, says trade body ASD-Eurospace.

The commercial satellite market, while recovering, is still below pre-2000 levels and the euro's strength against the dollar is an obstacle to sales, says Eurospace in its 2005 activity report. "The sector is losing business every year with subsequent employment reduction and industrial restructuring. Some key resources have become under-critical," says Pascale Sourisse, Eurospace president and Alcatel Alenia Space chief executive, in the foreword to the report.

Sourisse cites US Department of Defense spending on satellite technology as a major competitive pressure. Meanwhile, European industry does not expect the European Union/European Space Agency Galileo and Global Monitoring for Environment and Security projects to provide significant returns before 2008-9.

Source: Flight International