"This alliance will allow each company to continue to sell its individual launch services and to promote its own launchers," it said in a statement.

But the agreement, worked out following negotiations in Tokyo and Los Angeles, also provides a "back-up" in case of technical problems with one launcher, with clients entitled to seek the immediate services of either of the other two companies.

Arianespace general director Jean-Yves Le Gall raised the possibility of such an alliance in early July during a French-Japanese symposium on space cooperation in Tokyo.

Le Gall at the time suggested that the deal would be sealed in September.

"But we resolved issues very quickly and relations among the three companies are excellent," he told AFP on Wednesday.

"I am very pleased."

Added Mitsubishi Heavy Industries counterpart Junichi Maezawa: "We are sure that this initiative will satisfy our clients."

The head of Boeing Launch Services, Will Trafton, was also quoted in the statement as hailing the accord.

The satellite launch sector is currently in crisis. While an average of 30 satellites were put into orbit annually until the early years this decade, their number is expected to dwindle to about 10 in 2003.

"The market today is depressed because of difficulties confronting the telecommunications sector," Le Gall said.

SPACE.WIRE