Virgin Galactic says each spaceport it launches from is a $1 billion annual revenue opportunity

Virgin Galactic’s spacecraft exterior Spaceport America in New Mexico.

Virgin Galactic

Virgin Galactic CEO Michael Colglazier outlined his long-term objectives for the house tourism enterprise on Thursday, saying he sees the corporate bringing in as much as $1 billion in annual revenue per spaceport within the years forward.

“The first chapter of Virgin Galactic has been to accomplish an incredibly difficult task, creating a spaceflight system that can fly humans to space,” Colglazier stated whereas discussing the corporate’s third quarter outcomes on a convention name. “The next chapter of Virgin Galactic is to use this system to bring thousands and thousands of people to space and deliver our purpose of opening space to change the world for good. To reach this objective, we are embarking on a multi-year effort that will lead to flights not once a month, or even once a week – but targets flying 400 flights per year per spaceport.”

A each day launch tempo is years away nonetheless for Virgin Galactic, as the corporate is working to finish growth of its SpaceShipTwo spacecraft. To date, the corporate has carried out two spaceflights – one in December 2018 and the opposite in February 2019 – and plans to fly two extra take a look at flights to house within the coming months earlier than it flies founder Richard Branson.

Additionally, Colglazier famous that reaching 400 flights per 12 months would require a number of spacecraft working in Virgin Galactic’s fleet. Currently the corporate has one in testing, spacecraft Unity, and expects to finish manufacturing and rollout its second spacecraft within the first quarter of 2021. Colglazier emphasised the Virgin Galactic second and later spacecraft have been up to date “to have a better turnaround time” between flights, saying they’ve a extra “modular” design to enhance the effectivity of inspection and maintenace.

It’s engaged on a third spacecraft, with Virgin Galactic in a regulatory submitting on Thursday estimating it will price between $35 million and $55 million to finish manufacturing on the second and third spacecraft.

Because of Virgin Galactic’s air launch strategy to spaceflight – it makes use of a jet-powered provider plane to carry the spacecraft as much as an altitude of about 45,000 ft for launch – Colglazier additionally famous that the corporate is “going to need several motherships” at a spaceport to succeed in a flight charge of 400 per 12 months. The firm says it is “in the early planning stage to develop and build a second carrier aircraft.”

“In order to now pivot to be able to supply the demand that we expect, we are going to have to ramp up manufacturing in that regard. But I think it will be on the order of a few motherships, many spaceships and … a rocket motor for every flight as we go,” Colglazier stated.

Given that each spacecraft can carry as much as six passengers, UBS analyst Myles Walton highlighted in a word to traders on Friday that $1 billion in annual revenue and 400 flights per 12 months implies a ticket worth of about $400,000. The firm beforehand bought about 600 tickets, reserved largely at a worth between $200,000 and $250,000 each. Virgin Galactic has not but confirmed how a lot tickets will price when gross sales reopen, however the corporate’s management has indicated it expects to cost tickets greater than earlier than because of important demand.

Virgin Galactic’s spacecraft Unity glides in for a touchdown after a flight take a look at in New Mexico on June 25, 2020.

Virgin Galactic

Virgin Galactic is working in the direction of starting industrial service flights from Spaceport America in New Mexico. But the corporate’s management has had discussions with different nations about establishing extra spaceports around the globe, together with with Abu Dhabi, Italy, the United Kingdom, Australia and Sweden.

“I am very bullish on the transformational experience that we intend to deliver and the price points we believe we could command for this one-of-a-kind supply-constrained product,” Colglazier stated.

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