Richard Branson’s Virgin Galactic and Jeff Bezos’s Blue Origin: the new space race?
Branson has declared space open for business. Is that still a pie in the sky?
Virgin Galactic’s successful test flight last weekend enabled Richard Branson “to claim the crown of the first billionaire to make it into space”, said James Phillipps on Citywire – beating Amazon supremo Jeff Bezos’s Blue Origin venture by a matter of days. “The battle of egos” between the pair, and Elon Musk’s SpaceX, has created “a fresh wave of interest in the commercial opportunities beyond Earth”.
And the Branson coterie has been quick to capitalise on it. A new investment trust, Seraphim Space – chaired by former Virgin Galactic president Will Whitehorn – floated in London this week, providing “the first actively managed way” for the average investor to gain exposure to potentially “stellar” returns. Punters seemed very willing “to explore a new frontier”, said Naomi Ackerman in the London Evening Standard. Shares in Seraphim, which is backed by Airbus, climbed by 5.5% in early trading.
Let’s not get carried away, said Matthew Field in The Daily Telegraph. Branson might have achieved “weightlessness” as he skirted the edge of space, but shares in New York-listed Virgin Galactic fell to Earth with a bump this week on news that the company needs to raise another $500m of equity to fund its commercial launch next year. The 14% plunge was the latest shock for shareholders.
Subscribe to The Week
Escape your echo chamber. Get the facts behind the news, plus analysis from multiple perspectives.
Sign up for The Week's Free Newsletters
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
Branson and Bezos see their flights “as the beginning of a new stage in commercial space travel”, said Sarah McBride on Bloomberg Businessweek. But Virgin Galactic has been a pioneer for the space industry in other ways too. In 2019, it went public after merging with a special purpose acquisition vehicle (Spac) – “a then-obscure financial tool” that has since been adopted by a host of “risky companies”. Branson’s maiden flight may have validated Space Spacs, but it has also helped launch a dicey trend.
Virgin aims to take tourists to the edge of space “at a rate of more than one flight a day”, said Richard Waters in the FT. More than 600 people have so far put down an average of $130,000 to fly. “However, with room for only four passengers on each flight”, there’s “a serious shortage of seats in the short term”, and no firm timetable for when it will scale up commercial operations.
Galactic’s $8.3bn valuation may be hard to justify, said Alex Brummer in the Daily Mail. But fair play to Branson: his “space escapade” is the culmination of a long obsession. A pity that it coincides with such a parlous situation in the terrestrial air industry on which our economies depend. Branson’s Virgin Atlantic, like all the others, is foundering. Arguably, “his most important mission isn’t in outer space but over the Atlantic”.
Sign up for Today's Best Articles in your inbox
A free daily email with the biggest news stories of the day – and the best features from TheWeek.com
-
How secure are royal palaces?
The Explainer Royal family's safety is back in the spotlight after the latest security breach at Windsor
By Chas Newkey-Burden, The Week UK Published
-
Magnificent Tudor castles and stately homes to visit this year
The Week Recommends The return of 'Wolf Hall' has sparked an uptick in visits to Britain's Tudor palaces
By Irenie Forshaw, The Week UK Published
-
I'm a Celebrity 2024: 'utterly bereft of new ideas'?
Talking Point Coleen Rooney is the star attraction but latest iteration of reality show is a case of 'rinse and repeat'
By Irenie Forshaw, The Week UK Published
-
NASA's Europa Clipper blasts off, seeking an ocean
Speed Read The ship is headed toward Jupiter on a yearslong journey
By Peter Weber, The Week US Published
-
Polaris Dawn sets records for private space flight
SpaceX has launched billionaire Jared Isaacman and his crew high above Earth to conduct the first private spacewalk
By Peter Weber, The Week US Published
-
Boeing's Starliner to come home empty
Speed Read Astronauts Sunita Williams and Barry "Butch" Wilmore will return on a SpaceX spacecraft in February
By Peter Weber, The Week US Published
-
Is billionaire's 'risky' space flight about research or tourism?
In the Spotlight Jared Isaacman takes an all-private crew to space
By Joel Mathis, The Week US Published
-
Nasa's astronauts: stranded in space
In the Spotlight Sunita Williams and Butch Wilmore's eight-day trip to the ISS has now stretched into weeks amid concerns over their Starliner spacecraft
By The Week UK Published
-
Why water on Mars is so significant
The Explainer Enough water has been found to cover the surface of the Red Planet – but there's a catch
By Chas Newkey-Burden, The Week UK Published
-
What is NASA working on?
In Depth A running list of the space agency's most exciting developments
By Devika Rao, The Week US Last updated
-
Liquid water detected on Mars raises hopes of life
Speed Read A new study suggests huge amounts of water could be trapped beneath the surface of Mars
By Peter Weber, The Week US Published