US-based launch services provider Sea Launch is putting its operations on hold until mid-2015 as it carries out a series of cost reduction measures to address the upcoming gap in its manifest.
The company plans to carry out staff reductions of 25-30% at…
US-based launch services provider Sea Launch is putting its operations on hold until mid-2015 as it carries out a series of cost reduction measures to address the upcoming gap in its manifest.
The company plans to carry out staff reductions of 25-30% at both its headquarters in Nyon, Switzerland, and its prime contractor, Energia Logistics, in Long Beach, California. It will also take its Sea Launch Commander ship and Odyssey launch platform out of service temporarily during the inactive period.
In the interim, Sea Launch said that it intends to improve certain operational efficiencies, upgrade its launch and support systems, including evaluating shore-based power for the vessels while in port, and finalise internal trade studies relative to available vehicle configuration changes.
More specifically, Peter Stier, Sea Launch’s vice president of sales and marketing, told SatelliteFinance: “Sea Launch is pursuing operational efficiencies primarily in our marine segment of operations. The vessels in normal operational mode are powered in Home Port by running diesel engines. Switching to Shore Power alternatives will allow us to eliminate the recurring diesel fuel costs while the vessels are stationary.
“Another example of an operational efficiency we are pursuing is moving the final assembly operations of our Payload Accommodation Assembly from Seattle to Long Beach.”
Commenting on the measures, Serguei Gugkaev, CEO of Sea Launch, said: “In light of this gap in our launch manifest, Sea Launch is taking the opportunity to pursue all prudent business solutions to realise significant cost savings in labour, maintenance and fuel while maintaining the capability to call-up the vessels as needed.
“Sea Launch continues to aggressively market all available launch opportunities beginning in mid-2015 and will maintain a short launch call-up readiness state. While any reduction in staff is regrettable, Sea Launch will retain key personnel across all corporate and technical functions, allowing the company to ramp-up to meet its next/future launch commitments.”
At present, the company has no manifested launches for 2015, although it does have four whitetail vehicles in various stages of completion that could support a launch as early as June 2015.
Sea Launch has struggled to secure new launch contracts following its emergence from bankruptcy protection in 2011 under the ownership of Russian rocket manufacturer Energia. The company has previously said that it was looking to secure 3-4 launches per year to reach breakeven.
In order to achieve this, Sea Launch is embarking on two strategic initiatives: developing the launch capability for the Zenit rocket, and launching Russian government satellites.
Gugkaev previously told SatelliteFinance that the company will demonstrate its new dual launch capabilities in 2016 with the AngolaSat and Energia 100 satellites.
Stier said the company is also studying fairing modifications, both widening and elongating it, and available performance modifications to increase lift capability to 6,700kgs.
The governmental launch strategy, however, is complicated by the ongoing industry consolidation taking place in the Russian space sector.
The formation of United Rocket and Space Corporation will also have a significant impact on the future of Sea Launch. Both Energia and Khrunichev, producer of the Proton rocket and majority shareholder of International Launch Services, are set to be merged into the new entity.
Indeed, the president and general designer of parent Energia, Vitaly Lopota, recently left the company to become vice president for technological development at URSC. One of his first tasks is to prepare proposals regarding the future of Sea Launch. These are due in September.
