Ariane space project in doubt after explosion

Europe's troubled space programme was yesterday plunged into a new crisis after its most powerful rocket exploded shortly after take-off, sending more than $600m (£380m) worth of satellite equipment crashing into the ocean.

An unspecified "anomaly" was blamed after the Ariane 5 rocket disintegrated just three minutes after lift-off from the European Space Port on the coast of French Guyana on Wednesday night. Early reports suggest motor failure was to blame.

The explosion could be a fatal blow to the reputation of Ariane-5 rockets, which have a history of technical problems. It is also likely to hinder efforts by Arianespace, the European consortium, to return to profitability in the face of fierce competition from the US and Russia.

The space transport market is suffering from overcapacity due to a fall in demand from the financially stricken telecoms firms that form the bulk of its customer base.

The European Space Agency immediately launched an investigation into the failure, the second aborted attempt to get Ariane airborne in less than a fortnight.

Last month, Ariane and its business partners chartered an Air France jumbo to fly more than 100 dignitaries to the heart of the French Guyanan jungle to watch Ariane 5 take off. At the end of a dramatic countdown the rocket failed to ignite.

Jean-Yves Le Gall, Arianespace's chief executive, apologised for the loss. "We've been through difficult times before and we will overcome this challenge," he insisted.

The launch was seen as a test of Arianespace's abilities to cut costs by placing two heavy satellites into geostationary orbit at a time. Satellite insurance premiums are likely to rise as a consequence of the explosion.

Last month, the largest communications satellite ever built was lost after failing to reach orbit after being launched on a Russian rocket.

The Ariane 5 launch programme was only restarted in March when it successfully launched a weather-monitoring satellite.