US military risks new monopoly for rocket launches

The US military risks relying entirely on Elon Musk's SpaceX for military launches, swapping "one monopoly situation for another" if there are no changes to a new law on the use of Russian rocket engines, the US air force secretary has warned.

Deborah Lee James was speaking to reporters at the annual Space Symposium in Colorado Springs, which has been dominated by questions about the security of the US's access to space because of upheavals in the space launch market.

Among the many issues has been the interpretation of a budget law passed by Congress dictating how many Russian rocket engines United Launch Alliance, the current monopoly provider, can use before switching to a US-built engine. ULA uses Russian RD180 rocket engines in its workhorse Atlas V launcher but is trying to develop an alternative.

The assumption when the law was passed was that it permitted ULA, a joint venture of Boeing and Lockheed Martin, to use 29 RD180s after its current five-year contract with the US government expires in 2018. However, defence department officials have interpreted the language as saying it can use only a further five beyond 2018.

The new interpretation would force ULA to retire the Atlas V rocket some time in 2018 or 2019, well before it can certify its new Vulcan rocket for military launches in around 2023.

Ms James said she would welcome a "clarification" of the law.

"We want to have two or more providers compete for future space launches," Ms James said. "This is a step back."

There would not be a fully-developed new rocket from ULA ready by 2019, Ms James said. That would leave SpaceX's Falcon 9 rocket - which is due to gain certification for national security launches by June this year - as the sole option to take many satellites to space.

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The potential rocket engine issues are among a series of dilemmas that face the US military as it seeks to introduce competition into satellite launches. The military also wants open competition between SpaceX and ULA while ensuring that both parties win enough work to remain in the market.

Gen John Hyten, head of the US air force's space command, told the Financial Times after Ms James' briefing that the military intended to move to a "pure competitive environment" for launches. However, in some areas - particularly the launching of very large satellites - there might not be enough work to keep two providers in business.

In those cases, the military might have to specify a single provider for all launches to ensure the US enjoyed assured access to space.

"We're going to have to work closely with congress and business partners to make sure that exists," Gen Hyten said.

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