View Single Post
  #4  
Old July 3rd 03, 12:47 PM
Herb Schaltegger
external usenet poster
 
Posts: n/a
Default Ariane Economies of Scale

In article ,
Louis Scheffer wrote:

Hop David writes:

Much has been written in this newsgroup how economies of scale could
reduce launch costs.
Recently Ariane ordered 30 Ariane 5 Launchers
http://www.arianespace.com/site/news...ase_index.html
Is 30 enough to enjoy substantial savings due to economy of scale?


Yes, it is. The standard engineering rule of thumb is that unit prices
drop by 30% when the volume doubles. So if you order 32 rather than 8,
the unit price will be only half as much. A factor of 2 is substantial,
though many in this newsgroup think that much larger factors are possible.

Lou Scheffer



And you have sources inside Ariansepace and ESA to determine if your
standard rule of thumb even applies to something as off-the-beaten track
as an expendable launch vehicle? Especially one as fraught with
technical and managerial issues as Ariane V has been?

P.S. As an aside, anyone see that The Carlyle Group (with strong ties
to the current U.S. administration) just bought 70% of Fiat's aerospace
division which apparently (among other things) manufactures the Ariane V
strap-on solids?

--
Herb Schaltegger, Esq.
Chief Counsel, Human O-Ring Society
"I was promised flying cars! Where are the flying cars?!"
~ Avery Brooks