- Press Release
- August 19, 2022
Has The Promise of Space Tourism Started to Fade?
Virgin Galactic boldly goes into small satellites, telling future astronauts ‘you have to wait’, Telegraph
“Before the crash in November last year, there were around 750 “future astronauts” signed up to Virgin Galactic’s space programme, paying $250,000 (160,000) a pop for a seat on a spacecraft SpaceShipTwo that can reach the edge of space at an altitude of 62 miles before returning to earth. Numbers have already fallen to 700. These steadfast customers, believed to include high-profile ticket holders Ashton Kutcher, Angelina Jolie, Kate Winslet and Stephen Hawking, represent $175m in revenue. Whitesides, a former chief of staff for Nasa, is in a difficult position: it is necessary to keep his future astronauts sweet but with no date for the first space tourism mission, and investors to mollify, there needs to be a short-term moneyspinner or Virgin Galactic will run aground. His answer has been to pivot its business model dramatically away from human space travel, and into a burgeoning new sector: small satellite launches. This is why Virgin Galactic has rolled out the welcome mat for the UK firms they are potential customers, partners and advocates.”
Virgin Galactic passenger numbers ‘almost recovered’ after space craft’s fatal accident, Suffield Times
“Over the previous six months, Virgin Galactic has quietly reshaped its enterprise mannequin to give attention to the burgeoning small satellite tv for pc launch market, which it estimates might be equally worthwhile.”
Keith’s note: On one hand, there is nothing at all unusual about this business decision. Air carriers have been mixing passengers, cargo, mail etc. for the better part of a century – for obvious business reasons. Virgin Galactic is simply being smart in trying to diversify its customer base and product offering – while leveraging one against the other. On the other hand, you have to wonder who is going to write huge deposits for a flight with no clearly-known flight date. After a while more people are going to start asking for their money back – or they’re going to Virgin Galactic’s competitors (assuming they succeed where Virgin Galactic has not).