PARIS: Private European rocket company Arianespace has posted a heavy operating loss of between 50 and 60 million euros (dollars) in the fiscal just ended. The company's COO Jean-Yves Le Gall has been quoted in an AFP report warning of provisions following the failure of flight 157 in December 2002.

The company's operating losses stand at around 50 to 60 million euros but the failure of flight 157 has forced it to raise the level of provisions, initially fixed at 50 million euros, to cover loss making launches in 2003.

Arianespace recorded sales of 1.3 billion euros last year, up from 807 million in 2001, with twelve launches.

In the report, Le Gall has been quoted as saying that Arianespace won 11 out of the total of 15 contracts up for grabs on the world satellite launch market and has 41 satellite launches on its order books. He disagreed with predictions that the company will see only two or three contracts in 2003. He noted that several satellite deployment failures in the last years have meant replacements are needed.

The company usually publishes final results in June.