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Technology Stocks : Loral Space & Communications

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To: Ok2Launch who wrote (4927)11/30/1998 3:28:00 PM
From: Valueman  Read Replies (1) of 10852
 
More information on the Zenit from the Kyiv Post 11/27/98--note the reference to a March G* launch.

Final countdown for space industry

By Stefan Korshak
POST STAFF WRITER

    Clouded  with  yellow  smog  and  dotted  with  stagnant
factories, the gritty industrial city of Dnipropetrovsk  was
once the heart of the Soviet Union's race  with  the  United
States into space.
    Today the city's massive white brick Yuzhmash complex  -
Pivdenmash  in  Ukrainian,  which  isn't   heard   much   in
Dnipropetrovsk - is one of the few Ukrainian companies  left
still  employing  thousands  in  high-tech  engineering  and
manufacture.
    But if Yuzhmash doesn't quickly turn around its flagship
product's reputation for low reliability, space technologies
could well  be  added  to  the  long  list  of  21st-century
industries Ukraine should have had.
    A Yuzhmash Zenit-2 rocket is scheduled to hurl a Russian
Cosmos  telecommunications   satellite   into   orbit   from
Kazakhstan's Baikonur Cosmodrome sometime in December.
    If that  mission  flies  as  scripted,  Ukrainian  Space
Agency officials expect to be tossing satellites into  orbit
by the covey before the century is out.
    "As international communications moves toward  low-level
satellite systems with global coverage, demand is  high  for
launch vehicles like  Zenit,"  said  Aleksandr  Negoda,  the
agency's general director. "We see great  possibilities  for
the Ukrainian space industry."
    But if December's mission ends in a ball of fiery debris
as the last Zenit launch did on Sept. 9, Ukrainian  rocketry
is likely going nowhere but down.
    Aboard were a dozen  Globalstar  satellites  worth  some
$190 million, Ukraine's second  commercial  payload  in  its
history as an independent space power.
The timing could hardly have been worse.

Nowhere to go but up
    The ill-fated mission was a minuscule piece of  some  of
the biggest action on the planet. The likes of Motorola  and
DirecTV - never mind Bill Gates and  Rupert  Murdoch  -  are
racing furiously to stuff the  Earth's  skies  with  between
1,700 and 2,500 low-orbit satellites by the end of the  next
decade.
    Globalstar is a $2.5 billion player aiming for  a  slice
of just one of the markets all those  satellites  will  open
up: handheld satellite telephony. Globalstar once  hoped  to
be the first company to offer handheld  mobile  phones  that
work equally well in remote parts of Siberia and the  Amazon
rain forest as on the streets of Manhattan. The crash handed
that history-making achievement to Globalstar's  competitor,
Iridium, a consortium led by Motorola.
    An international consortium  led  by  the  U.S.  company
Loral Space and Communications, Globalstar plans to fire  48
satellites into orbit by the  end  of  1999.  It  originally
planned to launch 36 of those satellites on  Zenits  by  the
end of this year.
    The first four Globalstar  birds  uneventfully  achieved
orbit aboard a McDonnell Douglas Delta rocket launched  from
Cape Canaveral, Florida, on April 24.
    The Delta is a tried-and-true delivery system. Over  the
years and dozens of  launches,  the  U.S.  rocket  has  gone
erratic - blown up in flight, fallen over  on  the  pad,  or
zoomed off on a tangent - roughly one shot in 20,  which  is
pretty good by most standards.
    But the roughly $50 million that Loral paid to get those
four satellites in space was not the best deal  going,  some
industry analysts argue.
    "The Delta-2 (6925 and 7925 configurations)  has  proved
reliable, but it is too small," Josh  Hopkins,  an  industry
researcher, wrote in article posted on the Internet. "It  is
not the most efficient way to throw significant weight  into
space."
    France's Ariane-4 and  U.S.  Martin-Marietta's  Atlas-2a
are fairly comparable to the Delta in cost and capacity.
    Ukraine's hulking, two-stage  Zenit  is  not.  A  direct
descendant of the SS-18, a missile designed to  fly  several
tons of nuclear warheads from a Soviet silo to a  capitalist
target, the Zenit  can  catapult  two  to  three  times  the
tonnage out of the Earth's atmosphere as current versions of
Delta or Ariane.
    Made of inexpensive Russian and Ukrainian components and
assembled   by   dirt-cheap    Yuzhmash    technicians    in
Dnipropetrovsk, Ukraine's rocket costs about half as much as
the Western competition.
The down side is reliability.
    In 29 shots since 1985, Zenits have  failed  six  times,
according to  Ukrainian  Space  Agency  officials.  (Western
industry-watchers count two early test flights, putting  the
tally at eight failures out of 31 launches.)
    But at the end of the 20th century, all launch  vehicles
remain unpredictable, the Zenit's designer points out.
    "A failed launch is an unpleasant  thing,  but  that  is
part of doing business in space," said Yuri Smetanin of  the
Yuzhnoye State Design Bureau. "It  has  been  that  way  for
everyone: for us, the Chinese, the Americans. No  technology
works perfectly all the time."
    A bluff, craggy-faced man,  Smetanin  has  designed  and
built rockets for the last four decades. He and most experts
agree that the world's most reliable launch vehicle  is  the
U.S. space shuttle, which has worked 98 percent of the time.
    But the space shuttle is expensive  -  prohibitively  so
when it comes to launching satellites.
    Rockets are a better choice for  the  thrifty  satellite
launch shopper. American and French rockets  function  about
95 percent of the time, but they're not the cheapest on  the
market.
    That claim belongs  to  Zenit,  Ukrainian  Space  Agency
officials say.
    Which Globalstar understood perfectly well when it chose
Zenit to launch birds 5  through  16  two  months  ago.  The
launch, which cost an estimated $32 million, would have  set
a record for placing the largest number of  satellites  into
space on a single rocket.

Big Bang Theories
    The Sept. 9  mission  failed  spectacularly,  scattering
about $190 million worth of super-high-tech gear across  the
Altai mountains of central Siberia.
    The loss was insured, but industry analysts say the cost
of insuring a commercial Zenit-2 launch will be much  dearer
as a result of the crash.
    A   Russian-Ukrainian   commission   investigating   the
accident decided  a  computer  glitch  was  the  cause.  The
Zenit's on-board computer failed to recognize a  millisecond
shutdown   of   the   rocket's   primary    and    secondary
communications  frequencies  as  temporary,  the  commission
found. The  software  concluded  the  Zenit  was  no  longer
talking to  ground  control  and,  as  programmed,  cut  the
engines.
    Assigning blame was complicated. The computer was  built
in Ukraine but some of its circuitry was Russian.  About  40
percent of Zenit's  parts  are  Ukrainian;  60  percent  are
Russian. The rocket was assembled in Dnipropetrovsk.
    The  report  studiously  avoided  finger-pointing,   but
Smetanin felt the heat.
    "Before that launch, no one knew Professor Smetanin  was
the 'Father of the Zenit,'"  Smetanin  said.  "But  the  day
after the launch, everyone knew."
    For the 74-year-old scientist, on-the-job stress  levels
have been rising for the last 18 months.
    On May 20,  1997,  a  Zenit  with  a  Russian  Tselina-2
communications  satellite  aboard  exploded  shortly  before
second-stage ignition.
    But two months later, a  Zenit  flawlessly  orbited  six
birds for Israeli and European customers.
    "That was an extremely  important  shot,"  Negoda  said.
"That was our very first  commercial  mission,  and  it  was
absolutely successful."
    Unfortunately, next came the September  1998  Globalstar
launch, which wasn't.
    Out of 15 launches since 1990, Zenits  have  failed  six
times - twice the official 20 percent failure rate. Only one
of the last three missions was successful.
    Yuzhmash specialists realize a successful December  shot
is essential.
    "Our reputation is on the line," Smetanin said. "It  has
to work."
    The U.S. aerospace giant Boeing will also be watching to
see how far the next Zenit gets.
    The Seattle-based  firm  is  the  lead  company  in  Sea
Launch, an ambitious $1.5 billion project that combines  the
disciplines of rocketry and off-shore drilling.
    Sea Launch plans to launch satellites from  a  souped-up
off-shore drilling rig set down in an equatorial  region  of
the Pacific Ocean. The location will take advantage  of  the
Earth's gravity field to  slingshot  heavier  payloads  into
orbit more economically than from land-based launch pads.
    Norway's Kvaerner Shipping Company  built  the  platform
and ships to carry the rockets and their payloads.  Russia's
Energia and Ukraine's Yuzhmash and  Yuzhnoye  design  bureau
are jointly building the Zenit-3, a new three-stage  vehicle
to be transported in segments and assembled at the platform.
    Yuzhmash and the design bureau Yuzhnoye own  15  percent
of the venture. Boeing owns 40  percent,  Kvaerner  Maritime
owns 20 percent and Russia's Energia owns 25 percent. Hughes
Aerospace, PanAmSat and Loral Space Systems are all  slotted
for multiple launches.
    But delays have dogged the program. While Ukrainian  and
Russian officials argued  about  customs  duties  on  rocket
parts, the U.S. State Department slapped a $10 million  fine
on Boeing for not following bureaucratic procedures meant to
insure that sensitive American rocket technologies are  kept
secret. The first Sea Launch liftoff was  pushed  back  from
October 1998 to March 1999.
    Then,  after  the  September   Zenit-2   crash,   Boeing
announced the first launch would be  a  test.  News  reports
said PanAmSat, which was to  place  its  satellites  on  the
first Zenit-3, now wants to see a successful launch first.
    "We will have an inert  payload  aboard,"  Negoda  said.
"That will show customers what we can do."
    Meanwhile, PanAmSat announced last month  its  next  two
satellites will go with France's Ariane.

A Bigger Brother
    Americans and Europeans aren't the only ones offering to
launch satellites for those wary of Ukrainian rockets.
    Russia's gigantic Proton competes directly  with  Zenit,
in many ways outmatching it.
    Now  built  in  cooperation  with  America's   Lockheed,
Protons have flown more often than any other booster on  the
planet - 259 times since 1965. Over the years  Protons  have
glitched 15 percent of the time, a  slightly  better  record
than the Zenit's.
    As Russian and  Ukrainian  rocket  scientists  get  paid
about the same and the rockets use many similar  components,
the cost of a Proton satellite launch is  roughly  analogous
to that of a Zenit launch.
    On June 18,  1997,  a  Proton  successfully  sent  seven
Iridium  satellites  into   orbit.   Two   more   successful
Proton-Iridium launches followed  on  Sept.  14,  1997,  and
April 7, 1998.
    Not that Protons,  or  the  men  who  launch  them,  are
perfect. In 1990 a forgotten rag led to  a  crash;  in  1993
contaminated fuel brought down a rocket. On Dec. 24, 1997, a
Proton  third-stage  engine  failed,  leaving   an   AsiaSat
satellite in a loopy orbit.
    But low cost, large payloads and 21  Iridium  satellites
in orbit to its credit give Proton a firm  position  in  the
satellite launch market.
    For the Ukrainians to  compete,  they  must  demonstrate
that they can keep up with the Russians.  To  date,  Ukraine
has not been able to do that.
    Globalstar says it still plans to use Zenit  next  March
to launch 12 satellites, assuming the December  launch  goes
well. Globalstar's contract with Yuzhmash gives  it  a  free
launch in compensation for the failed one in September.
    In the meantime, Globalstar has  moved  forward  planned
launches on Russian Soyuz rockets. The Soyuz  is  a  smaller
rocket comparable to the Delta or Ariane but with a somewhat
lower price tag.
    "Everyone will be watching Baikonur this December to see
what happens," Smetanin said. "Especially Globalstar."
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