Virgin Galactic Holdings Inc will delay the launch of its commercial space flight service to the first quarter of 2023, the space tourism company said on Thursday, citing supply chain crisis and labor constraints.
Due to this announcement, Virgin Galactic could be potentially left behind in emerging space tourism market. Shares of the company fell nearly 2% in extended trading.
“We look forward to returning to space in the fourth quarter and launching commercial service in the first quarter of next year,” Chief Executive Officer Michael Colglazier said.
The Richard Branson-founded company had earlier planned to launch the commercial space flight service in the fourth quarter of 2022.
A handful of companies including Elon Musk’s SpaceX and Jeff Bezos’ Blue Origin are striving to make space tourism a reality, and some have already launched civilian missions.
Virgin Galactic’s net loss stood at $93.1 million during the first quarter ended March 31, compared to a loss of $129.7 million, a year ago.
Francesca Gregory, Analyst in the Thematic Team at GlobalData, said, “From the moment that Richard Branson flew his own spacecraft to the edge of space, it seemed that Virgin Galactic’s position as a leader in the space tourism industry was assured. However, there are fears that the company has lost momentum, with delays occurring to Virgin Galactic’s commercial spaceflight services. Worse still, it has bitten off more than it can chew.
“Virgin Galactic has been struggling to solve the rapid reusability problem, as it endeavours to cut the turnaround time of its spaceplane’s flights. Solving this conundrum will be critical to the long-term success of its sub-orbital tourism business. Although ticket sales remain strong, with a price tag of $450,000 per person, a hit with the billionaire crowd was always the easy part. Virgin Galactic risks severely limiting its potential with the rest of the market.
“It is not just a case of bridging the gulf between a statement space flight and an economically viable space tourism business. Late last month, SpaceX and Axiom Space made history by undertaking the first all-private mission to the International Space Station (ISS). The 10-day trip was an example of the emerging space tourism experiences that could compete with Virgin Galactic’s business. If Virgin Galactic does manage to cut its turnaround time and work through the backlog of ticket holders, a 90-minute flight may not be enough to compete with the other companies increasingly invading its space.”
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