SpaceX undercut ULA rocket launch pricing by 40 percent: U.S. Air Force
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Re: SpaceX undercut ULA rocket launch pricing by 40 percent: U.S. Air Force
#2The cynic in me assumes the 40% savings will just get shoveled into the F-35 furnace.
Re: SpaceX undercut ULA rocket launch pricing by 40 percent: U.S. Air Force
#3This is exactly how the market is supposed to work - SpaceX is delivering the same service for a lower price and now ULA is finally forced to put serious effort into competing. I'm curious what they intend to do once the reusable first stage program gets going and launch costs drop even further.
Re: SpaceX undercut ULA rocket launch pricing by 40 percent: U.S. Air Force
#4This is exactly how the market is supposed to work - SpaceX is delivering the same service for a lower price and now ULA is finally forced to put serious effort into competing. I'm curious what they intend to do once the reusable first stage program gets going and launch costs drop even further.
You're exactly right, except that I don't think ULA is going to have much trouble matching SpaceX's prices. They were in a monopoly situation before where they could name their own price (not really, but close enough).
I could see even ULA's pricing pendulum swing all the other way: they could start bidding for contracts at a loss, using their other business sectors to prop up the space division until they drive SpaceX out of business.
Exciting times...
Re: SpaceX undercut ULA rocket launch pricing by 40 percent: U.S. Air Force
#5This is exactly how the market is supposed to work - SpaceX is delivering the same service for a lower price and now ULA is finally forced to put serious effort into competing. I'm curious what they intend to do once the reusable first stage program gets going and launch costs drop even further.
You're exactly right, except that I don't think ULA is going to have much trouble matching SpaceX's prices. They were in a monopoly situation before where they could name their own price (not really, but close enough). I could see even ULA's pricing pendulum swing all the other way: they could start bidding for contracts at a loss, using their other business sectors to prop up the space division until they drive Spac…
> I could see even ULA's pricing pendulum swing all the other way: they could start bidding for contracts at a loss, using their other business sectors to prop up the space division until they drive SpaceX out of business.
That would be blatantly anticompetitive dumping, by the textbook definition.
Re: SpaceX undercut ULA rocket launch pricing by 40 percent: U.S. Air Force
#6This is exactly how the market is supposed to work - SpaceX is delivering the same service for a lower price and now ULA is finally forced to put serious effort into competing. I'm curious what they intend to do once the reusable first stage program gets going and launch costs drop even further.
You're exactly right, except that I don't think ULA is going to have much trouble matching SpaceX's prices. They were in a monopoly situation before where they could name their own price (not really, but close enough). I could see even ULA's pricing pendulum swing all the other way: they could start bidding for contracts at a loss, using their other business sectors to prop up the space division until they drive Spac…
Definitely a possibility. Do you have any info on what their actual manufacturing & launch costs are? I've heard SpaceX's current manufacturing costs are about $40M per rocket (+ fuel, transportation, launch fees, etc.), but have no idea on ULA.
Re: SpaceX undercut ULA rocket launch pricing by 40 percent: U.S. Air Force
#7Earlier quoted context omitted.
You're exactly right, except that I don't think ULA is going to have much trouble matching SpaceX's prices. They were in a monopoly situation before where they could name their own price (not really, but close enough). I could see even ULA's pricing pendulum swing all the other way: they could start bidding for contracts at a loss, using their other business sectors to prop up the space division until they drive Spac…
> I could see even ULA's pricing pendulum swing all the other way: they could start bidding for contracts at a loss, using their other business sectors to prop up the space division until they drive SpaceX out of business. That would be blatantly anticompetitive dumping, by the textbook definition.
Well, they wouldn't exactly put it that way in the press release.
An alternate end-game would be ULA stringing together a few contract wins, pushing SpaceX to the brink, and then ol' Elon gets a nice offer from Boeing and Lockheed...
Re: SpaceX undercut ULA rocket launch pricing by 40 percent: U.S. Air Force
#8This is exactly how the market is supposed to work - SpaceX is delivering the same service for a lower price and now ULA is finally forced to put serious effort into competing. I'm curious what they intend to do once the reusable first stage program gets going and launch costs drop even further.
You're exactly right, except that I don't think ULA is going to have much trouble matching SpaceX's prices. They were in a monopoly situation before where they could name their own price (not really, but close enough). I could see even ULA's pricing pendulum swing all the other way: they could start bidding for contracts at a loss, using their other business sectors to prop up the space division until they drive Spac…
It seems like 'buying first stage engines from Russia' will have a hard time undercutting the 'reuse the first stage entirely' strategy, no?
Re: SpaceX undercut ULA rocket launch pricing by 40 percent: U.S. Air Force
#9I like that they "decided to open up the launch contracts" which is code for "Oh we got sued and lost." :-)
This is a great move for SpaceX and while painful for ULA the results of solid competition has usually been better product from all suppliers. Let's hope that helps make for better rockets.
Re: SpaceX undercut ULA rocket launch pricing by 40 percent: U.S. Air Force
#10Yet, SpaceX cries about getting undercut by ISRO.