January 23, 1997
                                        Vol. 0 - No. 3
                                        By subscription only

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                  THE ORBITAL REPORT ON-LINE

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             Space Executive's Weekly News Digest


This is an experimental issue of Takyon International's latest
on-line newsletter. OReOL is intended to cover space industry's
news and market trend and provide the necessary background
information for immediate analysis.

         Please feel free to contact us for any comment.


=== HEADLINES ===

* A McDonnell-Douglas DELTA 2-7925 launch vehicle exploded
shortly after liftoff from Cape Canaveral Air Station at 16:28UT
on January 17. The vehicle's self-destruct system was apparently
triggered 13 sec. into flight, at an altitude of 484 m, possibly
due to the separation of the first and second stages or the
failure of one of the launcher's nine Alliant Techsystems-built
GEM strap-on boosters. This is the first total launch failure of
a Delta 2 vehicle in 55 flights since February 1989 and the first
failure of a Delta vehicle since May 1986. The US$55-million
launcher was carrying the first of the 21 NAVSTAR satellites to
be built bty Lockheed-Martin under US Air Force's Global Posi-
tioning System (GPS) Block 2R procurement. The loss of this
US$40-million spacecraft due to take over an older Rockwell-built
Block 2A satellite will not cause any disruption in the GPS
service since a 24-satellite constellation is still operational.
Falling debris caused only minor damage around the launch pad.
An investigation board has been named. All Delta launches will
be postponed until the cause of the failure is identified and
fixed. Sixteen Delta missions were planned this year, including
five launches to deploy 23 Iridium mobile telephony satellites.

* AT&T Skynet's TELSTAR 401 communication satellite (24C, 24Ku)
has been declared lost on January 17, after about one week of
efforts for recovery. The Lockheed-Martin-built spacecraft suf-
fered a major failure on January 11 whilst performing a station-
keeping maneuver. All attempts to restore contact with the
satellite were vain. All services have been transferred to
Telstar 402R and other satellites, some with less capacity.
Telstar 401 was to be transferred by AT&T to Loral Space under a
US$712-million sales agreement also including AT&T's Skynet
business and the three remaining Telstar satellites. Despite the
loss, Loral has confirmed the deal. Pending approval from the US
Federal Communications Commission (FCC), an interim service is
planned with the ageing Telstar 302 satellite, unless the Space
Systems/Loral-built Telstar 5 is launch in May.

* The US NAVAL RESEARCH LABORATORY (NRL) will modify a Titan 4
Launch Dispenser, initially developed for a classified mission
(possibly US Navy's 'Triplet' ocean surveillance system) into an
INTERIM CONTROL MODULE to replace the delayed Russian Service
Module, which is now more than 8 months beyond schedule, in the
early phases of the assembly of the INTERNATIONAL SPACE STATION
ALPHA (ISSA). Refurbishing the module is expected to cost less
than US$100 million.


=== BUSINESS ===

* JAPAN SATELLITE SYSTEMS INC. (JSS), of Tokyo, Japan, has
ordered a sixth satellite from Hughes Space & Communications
International Inc. (HSCI). As JC-Sat 3, 4 and 5, JC-SAT 6 (32Ku)
will be based on HSCI's HS-601 bus. Launch is planned in June
1998 to support News Corporation's JSkyB direct broadcasting
satellite system. JSS will contract separately for a launch
service.

* ORION ASIA PACIFIC CORP., a unit of Orion Network Systems, of
Rockville, Maryland, has signed a contract worth an estimated
US$275 million with Hughes Space & Communications for the procu-
rement of an HS-601HP satellite with launch services and ground
station. ORION 3 (32Ku) will be launched in late 1998 and posi-
tioned at 139°E to cover the Asia-Pacific region.

* CHINA TELECOMMUNICATIONS & BROADCASTING SATELLITE CORP.
(CTBSC), a division of China's ministry of P&T, has contracted
with SPACE SYSTEMS/LORAL (SS/L), of Palo Alto, California, for
the procurement of the CHINASAT 8 (16Ku, 36C) communication
satellite. The spacecraft, to be delivered in orbit in late 1998,
will be based on the high-power version of SS/L's FS-1300 bus.

* SPAR AEROSPACE LTD, of Mississauga, Ontario, has received a
US$115-million contract from National Research Council of Thai-
land's Small Satellite Program Office to build a 300-400-kg THAI
REMOTE SENSING SMALL SATELLITE (TRSSS) and the associated ground
segment. Launch to a 550-km polar orbit is tentatively planned
for the year 2000.

* DELCO ELECTRONICS, of Goleta, California, manufacturer of Delta
and Titan vehicles' guidance units, has been transferred from
HUGHES ELECTRONICS to another General Motors branch, DELPHI AUTO-
MOTIVE SYSTEMS. Following the sale of its defense activities to
Raytheon E-Systems, Hughes Electronics will now focus its busi-
ness on satellites and communication systems and services.

* NASA's JOHNSON SPACE CENTER (JSC), in Houston, Texas, has
awarded a contract potentially worth up to US$128.2 million to
BRSP INC. of Houston, a joint-venture of Brown & Root Services
and Pioneer Contract Services, for Base Operations Support
Services including maintenance, operations, logistics support
and security services at JSC. The contract includes a one-year
base period and four one-year options. JSC's Medical Sciences
Division also contracted with KRUG LIFE SCIENCES INC. (KLSI), a
subsidiary of Krug International Corp. biomedical services in-
cluding flight hardware work. The US$48.3-million contract lasts
for three years with US$33.8-million options for two more years.

* TELESAT CANADA was selected by ASIA BROADCASTING COMMUNICATIONS
NETWORK LTD. (ABCN), a subsidiary of The M Group plc of Thailand,
to operate the L-STAR geostationary communication satellites for
a period of up to 24 months. Both L-Star satellites, built by
Space Systems/Loral, are planned for launch in 1998 on Ariane
vehicles.


=== MARKETS ===

* ODYSSEY TELECOMMUNICATIONS INTERNATIONAL INC. (OTI), a joint-
venture between TRW and Teleglobe Canada, has signed a MoU with
CHINA TELECOMMUNICATIONS & BROADCASTING SATELLITE CORP. (CTBSC),
a division of China's ministry of P&T. The agreement gives CTBSC
exclusive rights to market Odyssey mobile communication services
in China. CTBSC will also operate one of Odyssey's seven regional
Earth stations. The 12 satellites of the US$3.2-billion Odyssey
intermediate circular orbit constellation for global personal
mobile communications is planned to be deployed in 2000 and 2001
provided that OTI can raise enough funding.

* NASA's Jet Propulsion Laboratory (JPL) in Pasadena, California,
plans to award up to five contracts worth about US$700,000 each
for design and definition studies of a SMALL RADAR OBSERVATION
SATELLITE dubbed 'LightSAR'. A selection is scheduled in March
with final reports due in November. The studies will include
market analysis as well as identification of potential industry
cost-sharing for follow-on development activities.

* Upon recommendation from United Space Alliance (USA), NASA
officials have decided that Space Shuttle ATLANTIS' next overhaul
will be performed at Boeing North American's US Air Force Plant
42 in Palmdale, California. This US$50-million ORBITER MAIN-
TENANCE DOWN PERIOD (OMDP) is planned to begin in September after
completion of the STS-86 mission and last 11 months. Atlantis
will be fitted with a new docking adapter and its in-orbit auto-
nomy will be extended with new cryogenic tanks. A proposal to
save US$2 million by performing the OMDP at Kennedy Space Center
in Cape Canaveral was dismissed not to interfere with the heavy
launch schedule. USA, a joint-venture between Lockheed-Martin and
Boeing North American is in charge of operating the shuttle fleet
on behalf of NASA.

* GE AMERICOM, of Princeton, New Jersey, has acquired a 17.25%
stake in the capital of NAHUELSAT SA of Buenos Aires, Argentina.
Incorporated in 1993 by Daimler-Benz Aerospace (DASA), Aero-
spatiale and Alenia Spazio, together with IFC, Telecom Argentina,
Uruguay's Entel and major Argentinean banks and investment funds,
Nahuelsat SA is due to launch its first satellite, NAHUEL 1A
(18Ku), on an Ariane vehicle on January 30. It will cover a foot-
print including most of Latin America and parts of the United
States. An interim service is already available on two Anik
satellites leased from Telesat Canada.

* TELESAT CANADA has renounced to buy TCI SATELLITE's second
TEMPO direct broadcasting satellite. TCI had initially planned to
operate two direct broadcasting satellites over the US but failed
to get the necessary licenses from the US Federal Communications
Commission (FCC). Tempo 1 (32Ku) will be launched on a Proton
vehicle to a US geostationary slot, in April. Tempo 2, to be
launched atop an Atlas vehicle several months later, is planned
to serve as a spare but could be sold to another operator.


=== TECHNOLOGIES ===

* The MARS'96 failure investigation board has concluded that the
lack of telemetry data during critical parts of the mission pre-
vented from identifying the cause of the failure which led to
the loss of the 6,700-kg Martian probe on November 17, 1996. The
failure apparently occurred at the second ignition of the Proton
launcher's Block D-2 upper stage out of range from Russian ground
stations. The US$300-million probe reentered over the Atacama
desert on the border between Chile and Bolivia.

* ALCATEL TELECOM has received a US$30-million contract from CNES,
the French space agency, to develop and build the POSEIDON 2 dual
frequency radar altimetry payload for the Jason satellite. A joint
CNES-NASA mission, Jason will be launched in late 1999.

* US Air Force's PHILLIPS LAB, of Kirtland AFB, New Mexico, has
awarded a US$2-million contract to SATCON TECHNOLOGY CORP. of
Cambridge, Massachusetts, to develop and build a composite
flywheel-based integrated power and attitude control system for
low Earth orbiting satellites.

* NASA's JET PROPULSION LABORATORY (JPL), in Pasadena, California,
has selected a team led by TRW INC. for a four-month architecture
study contract for the future SPACE INTERFEROMETRY MISSION (SIM)
proposed within NASA's 'Origins' program. The team, which will
review JPL's proposed SIM design, is composed of TRW Space &
Electronics Group, Eastman Kodak and Hughes Danbury Optical
Systems (soon to be acquired by Raytheon E-Systems).

* Initial post-flight inspection of Atlantis' SOLID ROCKET BOOSTERS
after the space shuttle launch on January 12 has shown no unusual
erosion of the thermal insulation liner as previously reported on
three SRB nozzles after the last two shuttle launches.

* One of the three available Space Shuttle's MOBILE LAUNCH PLAT-
FORM (ML-1) was damaged during roll-out of Space Shuttle
Discovery from the Vehicle Assembly Building (VAB) to LC-39A on
January 17. A 7-m long crack appeared on the platform's upper
surface but the main frame is intact and repair is planned on pad
with no effect on the launch schedule. Discovery is due to lift-
off on February 11 for the STS-82 mission to the Hubble Space
Telescope (HST).


=== PREVIEW ===

* Jan. 28.   An Ariane 44L (V93) is due to loft GE Americom's
             GE-2 and Argentina's Nahuel 1A to geosynchronous
             transfer orbit for Arianespace's first mission in
             1997.

* Jan. 31.   The investigation board on the loss of the Spot 3
             satellite is due to release its final report.

* Feb. 7.    First launch of Japan's M-5 all-solid vehicle to
             loft the MUSES-B satellite for a radioastronomy
             mission.

* Feb. 7.    Launch of a PEGASUS XL vehicle over the Canary
             archipelago in the Atlantic ocean, to loft the
             MINISAT 0.1 satellite for Spain's Instituto National
             de Tecnica Aeroespacial (INTA).

Erratum: A gremlin turned Space Shuttle Atlantis into its sister
ship Endeavour in our previous issue. Our readers had made the
correction. Atlantis flew to Mir whilst Endeavour is being refur-
bished in Palmdale, California.

        Next issue is tentatively planned for January 30.

The Orbital Report On-Line will be published 40 times per year
        by Takyon International (RCS Paris B 401 465 398)
           34, boulevard Exelmans, 75016 Paris, France
      Phone: +33 (0) 146 566 490 * Fax: +33 (0) 146 561 355
             Editorial hotline: +33 (0) 607 995 056
                  E-mail: orbirep@worldnet.net
                 Chief Editor: Stefan Barensky
              Technical Contributor: Samuel Szdat

             © Takyon International - January 1997
         Subscription information will be available soon.

              Takyon International also publishes
                 The Orbital Launcher Report,
           a monthly space transportation newsletter.

 ------------------ End of issue Vol.0, No.3 ---------------------


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