from suborbital space tourism to commercial personal spaceflight 2010 acta astronautica
TRANSCRIPT
-
7/23/2019 From Suborbital Space Tourism to Commercial Personal Spaceflight 2010 Acta Astronautica
1/8
From suborbital space tourism to commercial personal spaceflight
Walter Peeters
International Institute of Space Commerce (IISC), Douglas, Isle of Man, International Space University (ISU), Strasbourg, France
a r t i c l e i n f o
Article history:
Received 27 May 2009Received in revised form
15 October 2009
Accepted 19 October 2009Available online 4 December 2009
Keywords:
Space tourism
Commercial spaceflight
Point-to-point
Product life cycle
Customer requirements
a b s t r a c t
Excellent essays have been recently published on the profitability and the future of
space tourism. This paper is intended to supplement the considerations in this field andemphasizes the further potential evolution of commercial personal spaceflights. Indeed,
based upon work done at the International Space University (ISU) the oligopolistic
character of suborbital space tourism has been linked to marketing and product life
cycle (PLC) considerations and has led to the thesis that space tourism as a profitable
sector will require a follow-on strategy. Orbital space tourism, on one hand, could
become an extension of the PLC but, on the other hand, it is assumed that point-to-point
(P2P) commercial space transport will become the long term sustainable market.
Without ignoring technical challenges, this paper will mainly concentrate on marketing
and commercial aspects of personal spaceflight.
& 2009 Elsevier Ltd. All rights reserved.
1. Introduction
Let us examine the parallelism between the develop-
ment of commercial air transport and the emerging
development of commercial spaceflight. Although first
flights of some 300 m with Avion III were performed by
Clement Ader in 1897, these early attempts were less
publicly known as they were performed under strict
terms of military secrecy. More publicly known is The
Flyer, the first motorized plane constructed by the Wright
Brothers, which made its first memorable flight in Kitty
Hawk on 17 December 1903. On 15 September 1908 the
first passenger, E. Zens, was taken on board of the Flyermodel A, a bi-passenger plane developed for the US Signal
Corps.1 Already in 1909 the first piloting school was
established in Pau, France, graduating the first private
pilots in early 1910.
Certainly the threatening world conflict accelerated
the development of aviation considerably and in 1914,
only a decade after the first flights took place, a
considerable number of planes and pilots were already
present, as can be noted from Table 1.
Production rates rapidly increased during the next few
years under war conditions, reaching e.g. productions of
more than 1000 DH-4 aircraft monthly in USA alone, with
plans to double this production rate after 1918[1, p. 125
a.f.]. Already France on its own, at that time the leading
aircraft nation, is reported to have produced nearly 68,000
aircraft during WW1, from which not less than 52,640 are
recorded to have been lost!
2
Evidently, the availability of this large surplus of
aircraft, trained pilots and airports from 1919 onwards
led to the birth of the first commercial passenger flights.
Many military pilots offered short duration air trips to
passengers as a side activity to stunt flying (also known as
flying circuses and barnstorming). An interesting paral-
lelism to note also is that many of the first point-to-point
(P2P) air-routes were the result of Prizes, such as the 1919
Contents lists available atScienceDirect
journal homepage: www.elsevier.com/locate/actaastro
Acta Astronautica
ARTICLE IN PRESS
0094-5765/$- see front matter & 2009 Elsevier Ltd. All rights reserved.doi:10.1016/j.actaastro.2009.10.026
Tel.: +33388655024; fax: +33388655447.
E-mail address: [email protected] It is worth mentioning that this plane was developed under an
incentive contract for a Heavier-than-Air-Flying Machine, whereby the
target speed was stipulated at 40 mph. As the Flyer reached a speed of
42.68 mph a premium of 5000$ (20%) was awarded in accordance with
the incentive scheme[2]. 2 See www.century-of-flight.net
Acta Astronautica 66 (2010) 16251632
http://-/?-http://-/?-http://www.elsevier.com/locate/aahttp://localhost/var/www/apps/conversion/tmp/scratch_7/dx.doi.org/10.1016/j.actaastro.2009.10.026mailto:[email protected]://www.century-of-flight.net/http://www.century-of-flight.net/http://www.century-of-flight.net/http://www.century-of-flight.net/http://www.century-of-flight.net/mailto:[email protected]://localhost/var/www/apps/conversion/tmp/scratch_7/dx.doi.org/10.1016/j.actaastro.2009.10.026http://www.elsevier.com/locate/aahttp://-/?-http://-/?- -
7/23/2019 From Suborbital Space Tourism to Commercial Personal Spaceflight 2010 Acta Astronautica
2/8
Northcliffe Prize (to Ireland) or the 1927 Orteig Prize for
the transatlantic ParisNew York crossing.
The first regular service offered by the Farman
company between Paris and London, starting as early as
1919, proved not to be financially viable due to the high
ticket prices. However, soon after government support
was provided for such routes and from 1920 commercial
passenger flights took off with, among others, the then
reputed Franco-Romaine group with LondonParisCon-
stantinople routes.
So even if we can note a number of interesting
parallelisms there are also a number of considerable
differences between airflight and spaceflight develop-
ments:
Difference in timeline: If we consider the evolution in
technological know-how it is rather remarkable that it
took only 15 years between the first experimental
aircrafts and a commercial passenger service. With the
first human spaceflight in 1961, it took until 2002
(more than 40 years) before the first paying passenger,
Dennis Tito, could participate in a spaceflight.
Government support: Most analysts agree that the
birth of commercial air traffic would not have taken
place without considerable PPP (publicprivate-part-
nership) type governmental support. Besides some
isolated attempts, such as the US-DOD supported DC-X
development and minor ESA and NASA technology
development contracts, the same impetus has not
taken place in the space era.
Customer orientation: The aforementioned Farman
Company fitted the interior of its F60 Goliath planes
in accordance with tourist requirements. As one can
see, e.g. fromFig. 1, the (five) front seat passengers in
particular had an excellent and undisturbed view.
Similar customer considerations have only been
recently introduced in commercial space tourism
projects.
2. Customer requirements for personal spaceflight
Ignoring the customer requirements has very often led
to commercial failures. Recently, the space sector has
become increasingly aware of the necessity of this and, in
particular under impulse from very customer oriented
companies such as Richard Bransons Virgin Galactic, we
note increased emphasis in the design phase of commer-cial oriented spacecraft.
The potential size of the market for public space travel
will depend, in part, upon the attractive features
which designers of spaceflight experiences incorporate
into their spacecraft and related operations. Until re-
cently, the question had not been asked what do
passengers require and how can we adapt our planes to
these desiderata?.
Several market surveys have been undertaken and
several opinions have been presented[3,4]. In general, the
expectations of future space passengers include:
viewing space and the earth;
experiencing weightlessness and being able to float
freely in zero gravity;
experiencing astronaut training and other sensations;
communicating from space;
being able to discuss the adventure in an informed
way; and
having astronaut-like documentation and memora-
bilia.
These objectives need to be combined withsometimes
conflictingconstraints such as:
guaranteed safe return;
limited training time; and
minimum medical restrictions.
The first group of objectives requires adapted interior
design but also some additional features. Fig. 2 shows
some of the potential solutions as envisaged at ISU [5]
whereby we note:
the chairs are designed to adapt/move in accordance
with different g-loads in the different phases of travel.
windows are foreseen to ensure visibility at all phasesand seating positions;
ARTICLE IN PRESS
Fig. 1. Model of Farman F60 passenger plane (1919) (Source: Musee de
lAir, Le Bourget).
Table 1
Number of aircraft and planes in 1914[1].
Country Aircraft Trained pilots
France 260 171
Russia 100 28
Germany 46 52
Great Britain 29 88
Italy 26 89Japan 14 8
United States 8 14
W. Peeters / Acta Astronautica 66 (2010) 162516321626
-
7/23/2019 From Suborbital Space Tourism to Commercial Personal Spaceflight 2010 Acta Astronautica
3/8
a safety bar is designed to assist passengers back into
chairs before re-entry;
communication devices are built into the individual seats;
cameras on board, to be operated by the co-pilot, to
record the different phases; and
wearing of astronaut-type suits and helmets to mini-
mize potential injury.
Medical considerations are particularly important.
Whereas the traditional astronaut-selection philosophy
was based upon select-in principles, a paradigm shift will
be needed to concentrate on select-out approaches (since
all selection criteria will influence the eligible market).
This has influence on, amongst others [6]:
the pre-medical check, to be concentrated on select-
out criteria (whereby psychological issues will play a
paramount role), as covered by the FAA guidelines[7];
the medical facilities on board, such as an adapted
medical kit; and
telemedicine support. In view of the necessity of anastronaut like suit (mainly for marketing reasons), this
could be combined with built-in telemedicine (and
GPS) sensors.
Also in the case of training for the participants, the
technical aspects of the training are not the only
consideration. Spaceflight participants will also wish to
be fully informed. The educational dimensions of the
experience will therefore be important as well.
Last but not least a number of legal issues will need to
be considered well in advance, such as:
liability aspects and informed consent forms;
regulatory issues on certification and licensing (see
first FAA drafts);
environmental aspects (propellant pollution and sound
pollution); and
export control issues.
just to quote a fewy
Increased use of space for commercial transportationwill even lead to more advanced regulations such as the
ARTICLE IN PRESS
Fig. 2. Interior design proposal (Doule, ISU).
W. Peeters / Acta Astronautica 66 (2010) 16251632 1627
-
7/23/2019 From Suborbital Space Tourism to Commercial Personal Spaceflight 2010 Acta Astronautica
4/8
ones proposed in Space Traffic Management (STM)
proposals[8].
An attempt to merge the market requirements and thedesign consequences is summarized in Table 2.
A number of these assumptions have been studied in
detail in ISU and evidently can be contested by other
approaches; just to highlight a few of these items:
astronaut suits and helmets are suggested not only as
memorabilia but also to add safety related equipment
as well as to reduce chances for injuries (helmets);
also from a liability point of view substantial training is
suggested emphasizing on safety aspects such as
egress under different emergency conditions. More-
over this period may be used for medical examinations
and observation as well as the necessary familiariza-tion with the spaceflight and plane (responding to the
requirement of candidates to be well informed parti-
cipants, not only passengers); and
the short flight will reduce the need for extensive
medical aid on board, but for injuries and emergency
situations, a limited small medical kit is proposed to be
used by the co-pilot, trained to handle medical
emergencies.
3. Commercial evolution and outlook
3.1. The product life cycle (PLC) concept
The product life cycle (PLC) is a marketing theory
explaining the expected phases which each product and
service will pass, from design to obsolescence.
The PLC indicates that products have four things in
common: (1) they have a limited lifespan; (2) their sales
pass through a number of distinct stages, each of which
has different characteristics, challenges, and opportu-
nities; (3) their profits are not static but increase and
decrease through these stages; and (4) the financial,
human resources, manufacturing, marketing and purchas-
ing strategies that products require at each stage in thelife cycle varies[9].
Whereas many sectors are used to this cycle and have
adopted their strategy to it (think of model philosophy in
the automobile sector), more technological oriented
sectors have sometimes ignored this reality and failed to
prepare for successor products.
A typical PLC is depicted inFig. 3and consists of four
phases
In the introduction phase the product or service sales
are growing slowly in view of the fact that customers are
unfamiliar with the quality. In this phase, due to the need
to amortise the investments made in the developmentphase, there will be basically no profit.
In the growth phase, sales are booming if the market
accepts and appreciates the product, and profits are rising.
In many cases, in particular when technological products
are concerned, the market leader will have a competitive
advantage as any market followers will first need to
acquire the technological and production know-how.
Unavoidably this is followed by a maturity phase. New
competitors will enter the market, attracted by the profit
margins. This does not only mean that the market will
have to be shared between more parties, but it also often
leads to forced price reductions due to competition. As an
overall result the net profit will start to decline. Importantto note is also the fact that competitors may have learned
ARTICLE IN PRESS
Table 2
Space tourism marketing/system interrelation.
Phase Market requirement System consequence
Medical selection Allow maximum number of candidates Medical select-out criteria with waivers
Training Minimum duration Remote familiarization phase, tailored 10-days training
Informed passenger Appropriate introduction using astronaut-like material
Insurance Solid cross-waiver of liability and commercial insurance Reliability assessment and development of consent forms
Spaceport Safe and touristy attractions Location and infrastructureEasy access Good connection to major airports
Minimum of cancellations Location in terms of weather conditions
Minimum interference Distant from commercial airline routes
Flight Experience acceleration Trajectory, propulsion, admissible g-loads
Viewing possibilities Window design, also in relation to different positions
Experience microgravity Free floating space, easy unstrap/strap mechanism
Safety on board Fixation handles, medical kit, helmets, easy strapping
Documentation Filming on board. Positioned cameras
Communication Communication devices, possibly built in the seats
Return Memorabilia Astronaut suit, filming material, certificate
Fig. 3. Typical product life cycle curve (source: Perrault, William D. Jr. &
E. Jerome McCarthy, Essentials of Marketing, 7th Edition, 1997. Chicago:
Richard D. Irwin Company.)
W. Peeters / Acta Astronautica 66 (2010) 162516321628
http://-/?-http://-/?- -
7/23/2019 From Suborbital Space Tourism to Commercial Personal Spaceflight 2010 Acta Astronautica
5/8
from the market leader and may come up in this phase
with improved products.
At the end, during the decline phase, sales tend to
reduce very rapidly. This can be due to the fact that the
market/consumer behaviour has changed but in many
cases it is the result of a new product with improved
features. In this phase remaining stocks often have to be
sold at strongly reduced or even dumping prices.We should not fail to mention here that technology is
playing a paramount role in these cycles. Products can
become rapidly obsolete e.g. after the introduction of a
superior standard, as we witness presently in the case of
video standards, photography and IT products.
For some of these technological driven products we
should rather use the technological life cycle (TLC)
concept[10].
3.2. The PLC and suborbital space tourism
Let us apply these principles to our present Space
Tourism scenario. As a starting assumption we can
assume that we will follow a rather traditional PLC and
not as much a TLC approach, as the development of new
technologies will not happen rapidly.
As in any product life cycle, we have to assume a
strong reduction in profitability after a few years of space
tourism operation. There are two particular reasons for
this:
Ticket price reduction: All forecasts show that only the
first group of customers will be prepared to pay the
relatively high ticket price of, say 200,000 USD. Futron[3]
suggests a reduction to 175,000 USD after 3 years ofoperation, followed by a further reduction to 150,000 USD
2 years later and a continued gradual decline in the real
price to 50,000 USD over time as shown inFig. 4.
Competition: Depending on the strategies for market
development adopted by the first operators, in a mono-
polistic or oligopolistic environment, profits may be
rather high during the first years as shown in simulations
based upon the Hopper and Kankoh Maru projects [11].
Every product life cycle then comes into a phase ofsaturation when other competitors will enter the market,
putting pressure on prices.
This risk is rather high in our specific case. With some
16 known projects at the time of writing this article, some
of them funded by financially strong Business Angels, we
can reasonably assume that more than a few will enter
the market rapidly one after the other. It is evident that
not all competitors will have the cash-flow capacity to
sustain operations, but four or five likely ones will
certainly influence the ticket price structure.
3.2.1. Resulting PLC effectThe combination of a declining market, which will
require ticket price reductions, and the increasing com-
petition, may lead to a point where declining profitability
of this suborbital tourism product results in a shake-out of
the market, as can be observed in the early years of other
new industries. We can therefore assume that we are
dealing with a highly profitable but potentially volatile
market in the mid-term.
Estimating the points in a PLC is very difficult, unless
historical benchmark data are available (like the average
lifetime of a car model).
An attempt was made in ISU using standard economic
concepts measuring the market structure. In particularthe MES factor was used as a key indicator, whereby MES
ARTICLE IN PRESS
Fig. 4. Forecasted declining ticket price[3].
W. Peeters / Acta Astronautica 66 (2010) 16251632 1629
-
7/23/2019 From Suborbital Space Tourism to Commercial Personal Spaceflight 2010 Acta Astronautica
6/8
stands for minimum efficient scale, defined as the
smallest output level where long run average costs
minimized [12]. Developing a tailored simulation model
for this specific case this exercise concluded[13]:
maximal return is reached with a capacity of 2000
passengers per year;
maximum profits are assumed between 5 and 7 yearsof operation (end of growth phase in Fig. 3); and
the market will then have evolved from a monopolistic
to an oligopolistic structure.
As with each product and service, the next step will
therefore be to look for further evolution and diversifica-
tion. Whereas in the exclusive segment orbital flights can
be assumed to be the next market segment, point-to-
point suborbital transport seems the next logical step
after the initial market boom. Note that this will also be in
line with the evolution in the aeronautical sector, where-
by the first flights were event oriented before evolving to
regular point-to-point travel.
4. Point-to-point (P2P) space travel: a sustainable
market
4.1. The P2P space travel concept
In order to evaluate the feasibility of the market, an
extensive study was made in ISU on the different
parameters. As a starting point Concorde flights were
taken in terms of time savings and potential markets. The
results of the study[14]can be summarized as follows:
only distances of minimum 3500 km shall be consid-
ered for suborbital flight patterns. Formore econom-
icballistic flights this minimum distance starts from
7000 km onwards;
flight apogees shall be limited to max. 500km height to
avoid radiation exposure;
vehicles and trajectories shall be designed to reduce g-
loads for passengers;
the triangular trajectory New YorkLondon/Paris
Tokyo is presently considered as the most promising
one, although other links could be considered as
evolutive, as shown inFig. 5; planes to cover this trajectory require high develop-
ment cost (SUBORB-TRANSCOST calculation: 4.3B$,
unit cost 680M$) with ticket pricing in the order of
75; 000$;
a market of 50 passengers per day is assumed (based
upon Concorde equivalence), on the prime trajectory
LondonNew YorkTokyo (New YorkTokyo: 90 min.
flight time);
a viable cargo market will be limited to specific items,
for which the time value is high (such as transplants);
extensive work is needed on environmental propulsion
and noise level reduction, compliant with departures
and arrivals at conventional airports close to urbanregions; and
hybrid bilateral agreements are recommended, before
full ICAO standards are in place.
Special emphasis needs to be given to the spaceport
operations in the case of P2P travel.
Dedicated spaceports will certainly have the advantage
of being more independent from commercial interfer-
ences but risk being further from town centres for
environmental reasons. Moreover they will require addi-
tional airport to airport transfer in the case of an
additional hub. Such additional time constraints willmake this solution rather non-compatible with the time
driven business model described hereafter.
This leaves the preferred option of using conventional
airports. However, in order to have a competitive
ARTICLE IN PRESS
Fig. 5. Prospective routes for P2P travel [14].
W. Peeters / Acta Astronautica 66 (2010) 162516321630
-
7/23/2019 From Suborbital Space Tourism to Commercial Personal Spaceflight 2010 Acta Astronautica
7/8
approach linked to the value of time saving, a dedicated
check-in and disembarking/custom clearance service (like
was done with Concorde flights) will therefore have to be
envisaged.
4.2. Towards a P2P business model
It is important at this stage to point out that there is a
considerable difference between space tourism and P2P
space travel. The first category of activities falls under the
category of adventure tourism, defined as[15].
A variety of self-initiated activities utilizing an interaction
with the natural environment that contain elements of real
or apparent danger, in which the outcome, while uncertain,
can be influenced by the participant and circumstance.
Hence, space tourism:
is a once-in-a-lifetime experience;
will attract people who are not risk averse;
the trip may have some level of discomfort as part of
the experience;
will require a separate spaceport infrastructure (high
class hotels, simulators,y);
tourists want to be a part of the astronaut experience
and are willing to undergo (limited) training; and
the ticket price will be strongly supply oriented (no
competitive offering).
For commercial space travel, however
time saving will be the paramount factor;
the trip shall be comfortable and without risks;
connections to other airports and business centre
infrastructures are important (hence landing at com-
mercial main airports);
the space aspect is of interest but not the main
motivator; and
the ticket price will need to be competitive withalternative transport means (like private jets).
The latter difference brings us to the business case aspect.
If we assume in a first iteration that the passengers will
be present first class travellers with, in most cases,
additional VIP service facilities (check-in/out), we may
conclude that the time savings will be merely the flight
time difference, not the on-ground processing.
Table 3 provides a comparison between normal
(present) flight durations and the calculated suborbital
flight durations[14].
The situation becomes even more expressive if we
consider, e.g. a LondonSydney route, which requires astop-over and therefore travel times in the order of 22 h.
The target market group we are considering are time-
poor, cash-rich people, who are obliged to travel, such as:
top executives;
board members;
sports stars (golf, tennis, formula-1); and
celebrities (movie stars, musicians).
Evaluation of the first two categories result in hourly cost
figures (in terms of opportunity cost, i.e. the alternative
income generated by other options than travel time) in
the order of 4500$, with the latter two categories evenreaching levels of 30,000$/h[16].
It is clear that for the second category a trade-off,
purely based upon the time savings, can easily be reached,
whereby other factors such as the effect on physical
fitness will add a distinct but less tangible advantage.
The first category of travellers represents the more
frequent user group, and is therefore important for a
sustainable market, hence could be used as a prime basis
for a business model approach.
Let us base our assumptions on the New YorkTokyo
trajectory.
We can compare for this specific case:
the present, normal flight including a first class ticket
at 11,800$3; and
an alternative spaceflight with a time saving over 11 h
at 4500$/h opportunity cost.
Resulting in a theoretical break even space ticket price of
49,5004+11,800=61,300$.
Hence, based upon the previously estimated ticket
price of 75,000$ we are reaching equitable levels, but with
the intangible asset of having at the same time y been in
space as an extra bonus!
Evidently, in cases where stop-overs are presently
involved, the case for a direct P2P space trip will be even
stronger due to the additional time savings.
An additional comfort element can be illustrated as per
Fig. 6. P2P flights between London (or Paris) and New York
would allow the executive to leave around 10 am in
London (or Paris), have a 4 h meeting in New York and be
back the same day, around 11pm in London/Paris.
Certainly this will be a real asset for frequent travellers.
It seems evident that many aspects, in particular
technical ones, will require a debugging phase before we
can implement this business case, in particular in the
ARTICLE IN PRESS
Table 3
Comparison of flight durations.
Route Distance (km) Aircraft duration (h) Suborbital duration (av. min.) Time saving
London-New York 5900 7 h 30 70 6 h 20
London-Singapore 9560 11 h 30 76 10 h 14
New York-Tokyo 10,900 12 h 50 83 11 h 27
3
BA ticket in January 2009, according to website.4 Conservative 11 h timesaving at 4,500$/hr.
W. Peeters / Acta Astronautica 66 (2010) 16251632 1631
http://-/?-http://-/?- -
7/23/2019 From Suborbital Space Tourism to Commercial Personal Spaceflight 2010 Acta Astronautica
8/8
fields of flight comfort and safety. In many cases a number
of elements will be the same and it is assumed that the
suborbital flight experience will provide us with strong
feedback.
It would therefore be an added advantage for the
market evolution if the present design of suborbital
vehicles could to some extent be coherent with the
ultimate goal to develop a new generation of P2P space-
craft. The present EADS design (seeFig. 7) is undoubtedly
a first step in such a direction.
5. Conclusion
There is no doubt that the present plans for suborbital
space tourism will result in a flourishing market over the
next few years. The large number of potential competitors
and the limited market will most probably result in
reaching maximum profitability after some 57 years of
operation.
Entering, in terms of the product life cycle, in to the
maturity phase, orbital space tourism can then extend the
lifecycle considerably.
The real sustainable market, in analogy with what
happened in the aeronautical sector will be point-to-point
(P2P) regular space travel, whereby the relatively high
ticket prices will be compensated by the considerable
time savings, important for a select but tangible time-
poor, cash-rich target public.
However, this market segment will have higher safety
and comfort requirements compared to the previous,
more adventure tourism targeted group. It is therefore
important that the suborbital space tourism experience is
mirrored towards the later phase of space travel and
assists in debugging the early problems by appropriate
design and operational experience.
References
[1] I.B. Holley, Ideas, Weapons, Yale University Press, 1998, p. 29.[2] H.J. Herten, W.A. Peeters, Incentive contracting as a project
management tool, International Journal of Project Management 4(1) (1986) 3439.
[3] FUTRON Corporation, Suborbital Space Tourism Demand Revisited,Futron, Bethesda, 2006.
[4] G. Crouch, J. Laing, Space tourism attributes and implications forconsumer choice, in: Conference on Cutting Edge Research inTourismNew Directions, Challenges and Applications, Universityof Surrey, UK, June 69, 2006, ISBN 1-84469-012-1.
[5] O. Doule, Passenger Safety on Personal SpaceflightSpacecraftInterior Concept Design, IAC, Glasgow, 2008 IAC-08-B3.2.-D2.7.5.
[6] S. Adebola, Emergency Medicine for Human Suborbital Flight,Personal Assignment, ISU, 2008. Available from /www.iisc.imS.
[7] FAA, Guidance for medical screening of commercial aerospacepassengers, Federal Aviation Administration, Report DOT/FAA/AM-61/1, January 2006.
[8] K.-U. Schrogl, Space traffic management: the new comprehensiveapproach for regulating the use of outer space. Results from the2006 IAA cosmic study, Acta Astronautica 62 (2008) 272276.
[9] P. Kotler, K.L. Keller, Marketing Management, 12th ed., PearsonEducation, Upper Saddle River, NJ, 2006.
[10] W. Peeters, Space Marketing, Kluwer, Dordrecht, 2001.[11] R. Goehlich, A ticket pricing strategy for an oligopolistic space
tourism market, Space Policy 21 (4) (2005) 293306.[12] G.N. Mankiw, Principles of Economics, third ed., Ohio, South
Western, 2004.[13] J. MacLeod, Estimating suborbital market structure, Personal
Assignment, ISU, 2008. Available from /www.iisc.imS.[14] ISU, Great expectations: an assessment of the potential for
suborbital transportation, MS08 Team Project, ISU, Strasbourg,2008. Available from /http://www.isunet.eduS.
[15] J. Naisbitt, Global Paradox, Avon, New York, 1994 p. 163.[16] C. Druce, Business planning considerations for successful commer-
cial point-to-point sub-orbital space travel operations. Paperpresented at IAA Symposium, Ref. AA-1-2008-044, Arcachon,France, May 2008.
[17] C. Iwata, Pricing of suborbital PTP using opportunity cost, PersonalAssignment, ISU, 2009. Available from /www.iisc.imS.
ARTICLE IN PRESS
Fig. 6. Possible travel schedule London/ParisNew York[17].
Fig. 7. Artist impression of the EADS suborbital spacecraft (Source:
EADS).
W. Peeters / Acta Astronautica 66 (2010) 162516321632
http://www.iisc.im/http://www.iisc.im/http://www.isunet.edu/http://www.iisc.im/http://www.iisc.im/http://www.iisc.im/http://www.iisc.im/http://www.iisc.im/http://www.isunet.edu/http://www.iisc.im/http://www.iisc.im/http://www.iisc.im/http://www.iisc.im/http://www.iisc.im/http://www.iisc.im/http://www.iisc.im/http://www.iisc.im/