The first part of the paper describes the structure of the analytical cost estimation model (1982 edition) for launch vehicle development, fabrication and launch operations cost. Especially the new approach for a cost assessment of operations cost including refurbishment (in case of reusable vehicles), direct and indirect operations is presented for discussion and subsequent improvements by introduction of more reference values. The model uses the Man-Year (MY) as cost unit which is independent from inflation and currency exchange rate changes. The second part of the paper deals with its application to future systems analysis and cost comparison with the example of a potential future European launcher (Post-Ariane-4) with 15 tons LEO payload capability: ten different two-stage launch vehicle concepts (expendable, semi-reusable and fully reusable) with storable and cryogenic propellants are analysed with respect to development cost and cost per launch. The key problem for a future European launch vehicle is the optimum solution between the (limited) development effort and the desired minimum launch cost. More advanced (partially) reusable systems could provide an essential reduction in cost per launch, require, however, a higher development effort. In such a case an analytical cost model based on realistic reference data can provide important data for the vehicle concept selection process.