Jonathan Andrew Goff wrote:
Here's some more sundry about RLVs and economics as
I see them.

Ian Woollard wrote:

  
Yes. Or you find a very rich guy like Beal who 
will fund most or all of the development.
    

Most rich guys don't get rich through being million
dollar philanthropists.  They can be more long-sigthed
than VCs, and more patient, but they still expect to
make ROI.
Hey, I never said it would be easy ;-)
  Development costs need to be held within
reason or it will take too long to make returns for
it to be worth their efforts.
  
Yes, of course. The trick is to come up with a killer business plan and spend little of the serious money until you are sure you can do it.
Actually, I think that the first RLVs will have to 
be profitable at a small fraction of current total 
launch mass (or nearly so).

If you make the RLV a minimum size, then launching 
100x, might only launch as much mass as one Shuttle.
    

While this may work in the long run, you'll still
have a long time before it makes sense.  Very few
companies make 300lb satellites.
No, no. The main idea is to launch fuel a bit at a time, and then refuel a GEOsat on orbit before boosting it. The GEOsat goes up on a conventional ELV; Ariane or whatever. The essential point is for it to be a win/win proposition for every company involved, and I think that that is possible.
  Without some very
significant vertical integrations (basically also
building an orbital assembly facility),
No. It's just a docking between a taxi service and the GeoSat. It does require some redesign of the satellite, but it's minor.
You may get a few
tourist flights (as you could fit another person
into something that size), but odds are that you
couldn't make return quick enough.
I'm reasonably convinced that you're wrong; it seems likely that you could capture a small part of the GEOsat market and achieve pay back, getting tourist flights on top would be gravy. Pay back seems faster at the lower rates than with a bigger vehicle.
  Making a RLV
that can fly 100 times in a year is not trivial,
and in fact a lot of the design *doesn't* scale 
down with size (though construction and handling
costs do scale a bit).
True. But many things are easier too. It doesn't seem to be impossible- there are launchers about this size already; but more expensive because they aren't reusable. Minimum orbital size is about 50kg payload (you can launch smaller payloads, but vehicle size doesn't vary much).
In the long run, it may make sense to break things
up this small, but it'll be a while before it does.
  
Yes, well it will take a while to build the vehicle ;-)
No. It would take a few years to design a new vehicle
anyway. Whilst you are doing that, you can be trying
to sell contracts. If you don't manage to sell any;
you might as well pack up and go home.
    
Here's the problem that you missed.  If you are 
talking about some ultra small RLV, you'll have a
hard time getting anyone to commit to you.  This
is due to the fact that if your system doesn't 
work, they're left completely stranded.
Actually, I thought about this. If they have designed their system for separate fuel and payload you can always launch the fuel on a separate expendable anyway. That's still cheaper because the taxi doesn't need launching each time.
Now, you
may be able to pull off convincing them, but if 
you don't succeed, they take a huge hit.  People
don't like betting the farm on an unknown like that.

Now, Dave Salt idea (slightly bigger RLVs in the
7000lbs to orbit size) might make sense for the
current market, but then you also have to design
transfer vehicles etc.  This is a lot closer to
making business sense, as it doesn't require the
customer to make drastic changes in their billion
dollar systems to launch on your vehicles, and it
doesn't necessarily require orbital infrastructure.
That is an RLV system that *might* actually make
sense at current flight rates (which was kinda
my point).
No. It's too big. That makes it more expensive to construct, design and test. And it violates the launch-really-often paradigm, which is the main reason to go to RLVs in the first place (there just isn't a big enough market at the moment to support it). Also, his idea is a direct and immediate threat to the existing Geosat launchers, so basically whenever he brings it up with anyone in say, Arianespace, they never go for it.

The point of this small RLV idea is that it is clearly NO threat. There's no way this vehicle could launch a Geosat on its own, but it can reduce the costs and improve profits of the existing launchers, and it may well be suitable for space tourism- and that is the bigger market. Even launching 1000 people (easily achieved with a small fleet of vehicles) would pay back all of the development costs and allow entry into the large profit regime that lies beyond.
Yes, but if your test flights generate an asset that
you can borrow against, it helps. For example the 
RLV company buys a bunch of rocket fuel at a few 
dollars a kilogram. They stuff it in the nose of the 
test vehicle. Launch it. If it makes it; great, you
can potentially sell that payload; it's now worth 
about $1000-4000/kg. If it doesn't- it didn't 
actually cost you anything except the test flight, 
which you were going to do anyway.
    

While this sort of strategy is wise, you're overlooking
some issues.  First off, that fuel must be stored in
some way that is useful.  You'll need to design the
system to keep it in orbit, to transfer it to others,
to store it, to allow docking or grappling, etc.  All
of these are quite doable, but take more than a few
bucks per kilogram.
Reasonable points. Still, as long as it's not a few thousand bucks per kilogram ;-)

But I don't see why it would be that high.
Coupling this to your RLV development just adds 
unneeded risks,
I don't see this. Being able to launch useful (extremely cheap) materials on test flights, with no significant upfront cost, and no prior customer  money, seems to me to be of benefit.
 and having an asset that can't
be sold for a long time isn't always that wise.
It may be that you could sell the material well before the end of the testing. That depends on the salesmanship and the market, which until you investigate you cannot know whether it is there.
~Jon
-- 
-Ian

Motto: "You're Not Authorized to Know Our Motto."
So, like, how many lives DOES Shroedinger's cat have anyway?

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