Virgin Galactic Chairman Chamath Palihapitiya was on a financial news network yesterday denying the stock was a bubble, a claim that hasn’t aged well in the short term.
With shares soaring to a high of $41.55 only a week ago, they are hovering at around $23 as I writing this story. The shares were offered at $12 when Virgin Galactic went public last Oct. 28 and rose sharply in recent weeks.
The shares slid after Virgin Galactic reported a larger than expected loss for the fourth quarter 2019 and hinted at delays in the start of commercial suborbital flights, which were to have started in June. Analysts have downgraded the stock based on the earnings report.
Officials from New Mexico, the federal government and Virgin Galactic met last week behind closed doors for the state’s first Space Valley Summit to form a “collaboratory” to promote Spaceport America and the state’s aerospace economy.
The one group not invited: taxpayers who have forked over about $250 million to build the spaceport where Virgin Galactic is the anchor tenant. As the Las Cruces Sun News dryly noted
Minutes after [Gov. Michelle Lujan Grisham] exhorted the summit to “make sure every New Mexican … knows exactly what is happening here,” all reporters were asked to leave.
NMPolitics.net and its publisher, Heath Haussamen, have settled a lawsuit against the secretive New Mexico Spaceport Authority (NMSA) that runs Spaceport America. The authority agreed to release a group of fully unredacted leases of tenants at the spaceport and to pay the website $60,000.
Today, Sept. 27, marks the 15th anniversary of Richard Branson announcing the launch of Virgin Galactic Airways. It’s been a long, winding road between that day and today, filled with many broken promises, missed deadlines, fatal accidents and a pair of spaceflights.
This year actually marks a double anniversary: it’s been 20 years since Branson registered the company and began searching for a vehicle the company could use to fly tourists into suborbital space.
Below is a timeline of the important events over that period.
Fourteen years ago, Virgin Galactic and New Mexico promised “tens of thousands” of tourists would fly to space from Spaceport America by 2019. Total thus far: 0.
by Douglas Messier Managing Editor
When they announced in December 2005 that Virgin Galactic would locate its space tourism business in New Mexico, Virgin Founder Richard Branson and Gov. Bill Richardson made a number of eye-popping claims about why taxpayers should back a plan to build the Southwest Regional Spaceport to serve as the space tourism company’s home base:
$331 million in total construction revenues in 2007;
2,460 construction-related jobs;
$1 billion in total spending, payroll of $300 million and 2,300 jobs by the fifth year of operation; and,
$750 million in total revenues and more than 3,500 jobs by 2020.
Virgin Galactic would sign a 20-year lease as anchor tenant and pay fees based on the number of launches it conducted. New Mexico would use the spaceport, Virgin’s presence and the funds generated to develop a large aerospace cluster.
Surprisingly, New Mexico would spend more money, $225 million, to develop a facility now known as Spaceport America than the $108 million that Branson planned to spend on developing a fleet of five SpaceShipTwos and WhiteKnightTwo carrier aircraft.
Among all the big numbers in the announcement, there was a truly astounding one that was deemed so important it was mentioned twice. (Emphasis added)
Sometime in 2020, if all goes according to plan, British billionaire Richard Branson will board Virgin Galactic’s SpaceShipTwo VSS Unity at Spaceport America in New Mexico and take the first commercial suborbital space flight in history.
The landmark flight, which Virgin has been trying to conduct for 15 years, will also be the culmination of a 30-year effort by New Mexico to become a commercial space power.
Bill Richardson, who pushed through the construction of the world’s first purpose-built commercial spaceport as governor of New Mexico, has been accused of involvement in a sex trafficking ring run by the deceased financier Jeffrey Epstein and socialite Ghislaine Maxwell.
The Daily Beastreports on court documents that were unsealed last week in a defamation suit against Maxwell by a woman who claimed she was forced to have sex with Richardson and other prominent figures:
The nonbinding memorandum of understanding involving $1 billion in investment from Saudi Arabia is Richard Branson’s latest success in obtaining financial support from governments for his Virgin Group’s space companies.
The table below shows funding invested directly into the group’s space ventures and indirectly for infrastructure.
VIRGIN GROUP SPACE COMPANIES — DIRECT & INDIRECT GOVERNMENT INVESTMENT
Custom built spaceport named Spaceport America constructed on 18,000 acres of land — Virgin Galactic signed 20 year lease to serve as anchor tenant
Government-owned sovereign wealth fund Aabar Investments obtained 31.6 percent share of Virgin Galactic — plans for a spaceport where SpaceShipTwo would fly in Dubai — future commitment of $100 million more when Virgin Galactic developed viable plan for small-satellite booster (LauncherOne)
Aabar Investments increased share of Virgin Galactic to 37.6 percent
Under non-binding MOU, government-run Public Investment Fund (PIC) would obtain undisclosed share of three Virgin Group space companies: Virgin Galactic, Virgin Orbit and The Spaceship Company — Virgin Group to maintain majority ownership
PIC has an option to invest nearly a half-billion more in Virgin Group space services
“This business will mark a milestone in world history, and it will launch a new space industry — a private space industry, driven by innovators and entrepreneurs and new technologies and bold thinkers.” — Richard Branson
“What we are calling the second space age will open up a wide range of commercial opportunities, including point-to-point cargo delivery, with personal and business travel.” — Gov. Bill Richardson
Ten years ago today, Virgin Galactic and New Mexico announced a deal for development what became known as Spaceport America. New Mexico would built a $225-million spaceport with taxpayer’s dollars in the desert near Truth or Consequences. Sir Richard Branson’s new space company would sign a 20-year lease to fly tourists aboard SpaceShipTwo from the facility beginning in 2008. New Mexico also expected the spaceport to be used by UP Aerospace, Starchaser Industries, and Peter Diamandis’ Rocket Racing League and X Prize Cup.
SANTE FE, NM, Dec. 14, 2005 (New Mexico Economic Development Department PR) — Governor Bill Richardson and Sir Richard Branson, Chairman of the Virgin Companies, today announced that Virgin Galactic, the world’s first commercial space tourism business, will locate its world headquarters and Mission Control in New Mexico. The agreement between the State of New Mexico and Virgin Galactic calls for New Mexico to build a $225 million spaceport in the southern part of the state, on 27- square miles of state land.
Richard Branson is beginning to take a pounding in the British media as the 10th anniversary of his announcement of SpaceShipTwo approaches next Saturday.
When he announced SpaceShipTwo on Sept. 27, 2004, Branson promised to be flying in only three years. “Within five years, Virgin Galactic will have created over 3,000 new astronauts from many countries,” Branson said.
Commercial flights are now running more than 7 years behind schedule, with the first flight unlikely before next February and possibly much later. Now the British media are beginning to notice.
Deep in the American West lies a vast, arid desert plain known as ‘Jordana de Muerto’, or ‘Journey of the Dead Man’. The desolate, sun-beaten expanse of deepest New Mexico is flat and deeply inhospitable.
Yet it is here, four hours’ drive from Albuquerque, that a security gate marks the entrance to perhaps the world’s most spectacular white elephant….
Talk your way in and you’ll find a huge futuristic glass, steel and concrete building designed by the superstar architect Sir Norman Foster.
No expense was spared. Indeed, it cost local taxpayers, who footed the entire bill, almost a quarter of a billion U.S. dollars.
Remarkably, every penny of this huge sum, every brick that was laid, and every tonne of publicly-funded concrete poured into the desert, has been devoted to a singular cause: putting Sir Richard Branson into space.
The $80m Virginauts stranded on Earth London Sunday Times (Subscription Required) SIR RICHARD BRANSON is facing a backlash from aspiring astronauts who have booked a $250,000 seat on his space rocket after he revealed on an American television chat show the latest in a series of delays to the inaugural flight.
News of the latest setback to Branson’s commercial space programme came in an interview last week with David Letterman, the programme’s host, when the entrepreneur said he hoped to take the first commercial trip into space on Virgin Galactic in “February or March or next year”. He has previously said that he would be travelling into space by the end of this year.
The latest delay led to claims that the project was in crisis with some customers questioning whether the rocket would ever get into space.
WHEN will Sir Richard Branson launch himself into space? “What people forget is that it is rocket science,” he quipped in February. “It is complicated. But now every box has been ticked and we’re nearly there.” Er, how nearly? “We have a launch date this summer… By September, I hope to have gone to space.”
September is upon us, so presumably Beardie Lightyear is now aboard his rocket, preparing to slip the surly bonds of earth with a cry of “To infinity and beyond!” Or, on past form, perhaps not…
Eager to convince skeptical southern New Mexico voters to approve a tax hike to help fund the construction of Spaceport America, then-Gov. Bill Richardson promised that the revenues would bring millions of dollars in direct support to local schools.
Voters in Sierra and Dona Ana counties approved a quarter-cent increase in the local use tax, and Richardson kept his promise. The tax has raised $32 million in revenues so far, with a quarter of it — $8 million — going to local schools to fund additional teachers and new programs.
Now, with Richardson gone due to term limits, that deal is in danger of unraveling as legislators from other areas of the state are eying the revenue.
Mojave Air and Space Port CEO/General Manager Stu Witt has set the record straight about the hiring of former New Mexico Gov. Bill Richardson.
It had been widely reported that the East Kern Airport District (EKAD) Board of Directors would be meeting on Wednesday to consider an agreement to hire Richardson to help strengthen California’s informed consent law, which covers commercial spaceflights.
Witt told the EKAD board that these reports are incorrect. The Mojave spaceport did hire Richardson earlier this year as a consultant to help get the original legislation approved. That work is now over, and there are no current plans to hire Richardson, who was paid $10,000 for his services.
The EKAD board did meet in special session on Wednesday to approve an expenditure for improvement work on two of the airport’s main roads. Witt said there’s a need to get the work done now because Mojave is currently experiencing a spell of warm weather that will make the repairs more effective.
The EKAD board will meet for a regularly scheduled session next Tuesday.
New Mexico Gov. Susana Martinez will make a renewed push to have an informed consent law extended to spacecraft manufacturers and supplier in order to make Spaceport America more competitive. An effort earlier this year failed due to the oppositi0n of trail lawyers.
The renewed push, set for next year’s legislative session, comes as news broke that the Mojave Air and Space Port in California is hiring former New Mexico Gov. Bill Richardson is being hired as a consultant to get similar legislation pushed in the Golden State. The Albuquerque Journal reports:
Scott Darnell, a spokesman for Republican Gov. Susana Martinez, said, “Richardson is certainly free to consult or help with the spaceport activities of another state, but in New Mexico, this just highlights how important it is for us to ensure that we continue to lead in this industry by passing legislation in the upcoming session that prevents lawsuit abuse.”
UPDATE: The Bakersfield Californian reports that this is old news. Richardson was paid $10,000 earlier this year for acting as a consultant in helping to get the informed consent law passed. “It’s done. It’s over,” says Mojave spaceport CEO Stu Witt.
The Mojave Air and Space Port has signed up a heavy hitter in an effort to strengthen California’s spaceflight informed consent law:
Former Gov. Bill Richardson will be going to work for a California spaceport to help push lawmakers there for an expanded “informed consent” law protecting manufacturers and suppliers of private spacecraft from most civil lawsuits.