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SpaceX undercut ULA rocket launch pricing by 40 percent: U.S. Air Force

reuters.com

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Re: SpaceX undercut ULA rocket launch pricing by 40 percent: U.S. Air Force

#11

Post by chrisatumd »

hudibras wrote: post #4
mdorazio wrote: post #3

This 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…

SpaceX is competing with ULA for U.S. Government Agency launches but I don't think they could drive SpaceX out of the commercial launch business.

Re: SpaceX undercut ULA rocket launch pricing by 40 percent: U.S. Air Force

#12

Post by TrevorJ »

hudibras wrote: post #4
mdorazio wrote: post #3

This 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…

If you look at the projected numbers for ULA's newer technology that isn't online yet, it still doesn't beat SpaceX's pricing. I think ULA will stick around, but it won't be because they win a price war.

Re: SpaceX undercut ULA rocket launch pricing by 40 percent: U.S. Air Force

#14

Post by rgbrenner »

mdorazio wrote: post #3

This 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.

I'm curious what they intend to do once the reusable first stage program gets going and launch costs drop even further.

ULA is working on reusability of at least the engine in its vulcan rockets that will replace Atlas and Delta in 2019:

https://spaceflightnow.com/2015/04/13/ula-unveils-its-future...

the plan is for vulcan to cost about 50% of an atlas V... so about 80-100m

Re: SpaceX undercut ULA rocket launch pricing by 40 percent: U.S. Air Force

#18

Post by ryanmarsh »

hudibras wrote: post #4
mdorazio wrote: post #3

This 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…

US Gov't is not SpaceX' only customer.

http://www.spacex.com/missions

Re: SpaceX undercut ULA rocket launch pricing by 40 percent: U.S. Air Force

#19

Post by hydrogen18 »

JoshTriplett wrote: post #5
hudibras wrote: post #4

Earlier 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.

It is also illegal to bid contracts below cost when the customer is the DoD.

Re: SpaceX undercut ULA rocket launch pricing by 40 percent: U.S. Air Force

#20

Post by kenferry »

hudibras wrote: post #4
mdorazio wrote: post #3

This 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…

Well, but what do you think they did after they named their price? I'd guess they hired a bunch of people, and their expenses came up to match what they could charge.
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