Used satellite for sale: only $80M

Press, 30 August 1984, Page 21

Used satellite for sale: only $80M

The world’s first sale of secondhand satellites is to be held this year — and the used spacecraft salesmen will be British. London insurance underwriters intend to become spaceage Arthur Daleys after agreeing to back a November shuttle rescue of a derelict Palapa B communications satellite. A similar stricken Westar 6 satellite may also be retrieved. Back on Earth, the satellites will be given a quick once-over of their electrics, a solar panel respray, and will then be sold to the highest bidder. Reconditioned, low-mileage spacecraft could become the nice little earners of tomorrow.

“At the right price these satellites will be good buys. There is a big demand for them at the moment,” says Mr John Howes, of Crawley Warren, one of the

From

brokers involved in the deal. The insurance groups have even arranged a knock-down price for the salvage flight, about $9.2 million, exploiting the United States National Aeronautics and Space Administration’s anxiety to carry out a space spectacular, after the recent dismal performance of its shuttles.

The satellites — only one previous owner — will then each be sold for about SBOM, which should help to offset the $373M compensation that underwriters had to pay out after the craft were lost in February when their launch from the shuttle Challenger failed. Two-

ROBIN McKIE,

in London

thirds of this money was arranged through the London insurance market. Likely buyers for the craft would be Governments, national postal departments, and international communications com-, panies.

Palapa’s owner, the Indonesian Government, has signed over property rights to underwriters led by Merritt Syndicates of London. A similar deal is being worked out with Western Union, the owner of Westar 6.

This paves the way for the November rescue when astronauts Joseph Allen and Dale Gardner will use space backpacks to haul

the satellites back to their shuttle, Discovery, scheduled to make its belated maiden flight next week. Spacecraft retrieval has only been carried out once, when a Solar Maximum Mission satellite was repaired in orbit in April. It was designed for orbital repair — communication satellites are not. Retrieving two is extraordinarily ambitious.

However, N.A.S.A. is desperate to demonstrate the advantages of its sophisticated shuttle craft and has agreed to undertake the task, almost free of charge. If successful, the rescue could mean similar missions, N.A.S.A. believes. However, thoughts of a second-hand satellite lot being built at the Kennedy Space Centre are premature.

“Apart from Westar and Palapa,

there is only one other satellite — a remote sensing satellite called Landsat 4 — which is orbiting low enough for the shuttle to rescue it,” says N.A.S.A.’s chief lawyer, Neil Hosenbaum.

However, N.A.S.A. is currently preparing plans for a robot tug — called the Orbiting Manoeuvring Vehicle — which will fly to high orbit 36,800 kilometres above Earth, to retrieve the expensive communication satellites that hover there. Returned to low orbit, they could then be repaired and refuelled at the projected United States space station which is to be built in the 19905, before they are returned to high orbit. Then we will truly have arrived at the day of the space breakdown truck. Copyright—London Observer Service.