"We plan to offer our governments a mutual backup agreement between Europe and Japan," Jean-Yves Le Gall told a press conference.

"I think 2004 will be a key year for this negotiation," he told reporters later, when pressed on the timing of the accord.

The "back-up" agreement would enable a European satellite supposed to be launched by Arianespace to be launched on a Japanese rocket in the case of technical problems or other hitches, and vice versa.

Last year Arianespace inked in a similar alliance covering private sector satellite launches with Japan's Mitsubishi Heavy Industries and US giant Boeing.

Le Gall argued Japan and Europe were in a similar situation with relatively small space budgets and few launch vehicles, in contrast to the United States where the Department of Defense needs numerous launches.

"This is why such an agreement is possible only between Europe and Japan," he said.

Arianespace has already signed two launch contracts with Tokyo this year, and expects to seal two or three more before the end of the year, according to Le Gall.

The European company's launch contracts are split roughly evenly between Asia, Europe and the United States.

Out of a total of 17 satellites put into orbit last year, Arianespace was responsible for launching eight, and expects to account for half the global launch market of 15 to 20 payloads this year, a quarter of which will be related to high-definition television according to Le Gall.

That proportion is expected to rise to half of all satellite launches in four years, said Arianespace's senior vice president for sales and marketing, Philippe Berterottiere.

"I think there is a huge potential in this field," said Le Gall, adding that the development of flat-screen televisions in Japan was contributing to this trend.

Arianespace has been picked up 21 of the 29 satellite launch contracts signed by Japan so far.

SPACE.WIRE