The Hubble Space Telescope has become collateral damage in the wake of President Bush's plan to send manned missions to the Moon and Mars. Bush's plan calls for the Shuttle to be retired in 2010, with virtually all remaining Shuttle flights until then scheduled to be used to complete the International Space Station. (One assumes, and hopes, that the plan also includes having a Shuttle replacement flying by 2010.) As a side-effect of this plan and of safety requirements established after the loss of Columbia, all remaining Hubble servicing missions have been canceled.
The Hubble Telescope is expected to continue operating until 2007 or 2008, and is planned to be safely de-orbited in 2011 or 2012. NASA plans to launch a more capable James Webb Space Telescope in 2011 to replace Hubble; no word yet as to what NASA plans to launch it on.
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About the only ways I can see right now of the US having a Shuttle replacement flying by 2010 is if Jack Northrop and Burt Rutan go for broke and say, "OK, the government may not want to give Northrop Grumman any contracts, but if we build an SSTO hauler they'll HAVE to come to us for launch capability after the Shuttle is EOL'd," or if Lockheed Martin tells NASA and the Pentagon to bugger off and says, "The hell with you guys, we're going to build an SSTO to our specs, and it's going to WORK."
A privately-designed, privately-funded spacelift capability like these is feasible, though it's a hell of a short timeframe. Boeing has a working linear aerospike engine, for instance, that might be used as the basis for a conventional-takeoff orbiter.
Of course, it also would not totally shock me if the Jack Webb Space Telescope got cancelled. "There's no profit in basic science, which is all it would be good for, and anyway, we don't have anything big enough to launch it on."
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BIll Gates would be well-advised to throw a billion or so at someone who is building an SSTO hauler. World domination is obviously his goal, right? Once the shuttle is gone, he'd have a stranglehold on space travel.
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Yes, I know there's a huge difference betwixt a gaming console and a spaceship :P
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Of course, I'm also told the damned thing weighs about twice as much as one each of every other game console on the market put together.