Arianespace is to ask its shareholders for a cash injection of some Fr2 billion ($325 million), which president Jean -Marie Luton says is needed to help the consortium maintain its position in an increasingly competitive world market for satellite launches.
The Arianespace board will put the proposals to the consortium's 53 partners at an extraordinary general meeting in March. Luton says that the cash is also needed to fund new developments.
The launch rate is also due to increase significantly from the original plan of five a year to as many as 14. Arianespace has already committed to series production of 14 launchers, and is negotiating a procurement of a further 20 - but contingent upon a 40% reduction in unit costs.
Luton says that the capital increase will not change the balance of Arianespace's ownership, which is principally the French space agency CNES(32.2%), Aerospatale and SEP(7.7% each), Daimler-Benz Aerospace and MAN (7.5% each) and Fiat Avio (6%).
Source: Flight International