Randall Clague wrote:

>Couldn't have said it better myself.

Thanks.  Over the past six years of shooting my
mouth off, I have managed to increase my S/N ratio
a bit.

>>As I see it, the first RLVs or ultra low cost 
>>commercial ELVs will have to be profitable at 
>>current flight rates.
>
> This, OTOH, is, IMHO, OTL.  (Working on gummint stuff 
> today.  Can youtell?) 

OTL?  What does that mean?

> Current launch rates are about one a week nationwide.  

If that.  Maybe I should have said "at or close to
current flight rates".

> There's no way to make money at that launch rate 
> without charging an arm and a leg.  

Which is ok, because current launchers can charge an
arm, a leg, and a spleen (plus occasionally naming
rights on your first three male children).  If you
charge only an arm or a leg (and especially if you
have some way of intact abort for the payload, so
you can reduce their insurance costs), you can get
enough flights to turn a profit, then over time you
can drop your prices (maybe by offering very steep
discounts if they buy launches in large numbers).

> At that launch rate, it doesn't matter what the 
> vehicle costs, or what the fuel costs.  Overhead 
> eats you alive, because you have to pay your people
> and your landlord whether you're launching once a 
> week or once an hour.

It is possible to design a small orbital ELV, and 
maybe a very small and simple RLV (or maybe a small
partially reusable/recoverable LV) using less than
say 25 people (SpaceX is doing that).  Burn rate 
for a company of that size is likely $2.5-5M/year
fixed rate.  Taking them as an example, if their
Falcon costs say $2M per flight marginal, and they
charge $6M per flight (which is cheaper by over 50%
than you can normally get for small payloads), then
they only need 1-2 flights per year to keep their
cashflow positive, and 2-4 flights per year to pay
back their R&D within a reasonable time (2-5 years).

So, yeah it is possible to make money on the current
market, just you won't likely be able to reduce the
costs very far.  But you can improve the situation,
and get experience doing quick-turnaround processing
that will be needed to validate your RLV claims for
a 2nd gen vehicle.

> I disagree with you, and I somewhat resent your
> statement that because I disagree with you, I smoke
> dope.  I don't smoke dope, never have, never will.
> Let us *reasonably* disagree.

I'm sorry, I was being sarcastic.  I understand that
there really is a lot of room to disagree here, and
I didn't intend to offend.  I still think that any
company that expects to nab more than 20 flights in
their first year is being optimistic, and any that
expect more than 100 in their first year are being
fanciful (IMO), but that is just my opinion, and I'd
love to be proven wrong.

~Jon

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