The contract signed in December for the production of 18 Ariane 5 rockets and valued at about $3 billion reflects only a 5 percent per launcher cost reduction from a similar contract inked nearly five years ago for the same type of rockets, according European government and industry officials. These officials said the PB-Plus contract for 18 Ariane 5 rockets - but only 13 upper stages - is valued at more than 2 billion euros ($2.7 billion) and highlights the challenge in Europe of reducing the cost of a vehicle now facing more global competition than ever. Entrenched interests in industry and government resist any major price cuts in part because of the incentive structure that has long been part of the Ariane launcher system, officials said.
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