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Hughes Cancels HIIA Block-Buy Launch Contract

More Information:

Hughes Space and Communications International, Inc. has canceled a contract with Rocket System Corporation to launch satellites using the next-generation H-2A rocket being developed by Japanís National Space Development Agency. According to the terms of the contract, signed in 1996, Hughes planned to launch 10 satellites at a combined cost of nearly US$830 million (90 billion yen). Hughes was planning to start launching satellites with H-2A rockets in 2001, though the November 1999 failure may have pushed back the first launch to the second half of 2002 or later. The contract reportedly contains a clause stipulating that Hughes can unilaterally cancel the contract if the launches of two consecutive H-2 or H-2A rockets fail. Hughes is demanding the return of about US$28 million (3 billion yen) it has already paid as an advance to Rocket In 1996, Space Systems/Loral signed a similar contract, also for 10 launches.


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May 29, 2000

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