Russia’s first private space tourism company shuts down

Capitalism in space? Russia’s first private space tourism company has been forced to close before it even launched its first rocket because of the obstacles placed before by Russia’s government.

Kosmokurs’ operations will cease due to “insurmountable difficulties” in coordinating with local authorities on the cosmodrome project as well as the company’s “inability to obtain needed regulatory documents from the Defense Ministry” for the design of a suborbital tourist rocket, its CEO Pavel Pushkin told RIA Novosti.

However, the government-run Roscosmos, which controls the rest of Russia’s aerospace industry, has graciously announced it will hire Kosmokurs’ fifty employees.

Do you see a pattern? I do. Kosmokurs was cutting into Roscosmos’s territory. That could not be tolerated, and so the government moved to sabotage it. Now that it is dead, the government can absorb it to try to build its rocket and make money using it.

This kind of mob rule by the Russian government is why that country’s space industry is failing to compete with the new commercial industry coming out of the U.S. and elsewhere. It does not tolerate free competition, only top-down control by the government. The result is that while Russia might eventually fly its own space tourism rockets, it will have only one, and it will likely not be as efficient or as competitive. The only cost advantage it will likely have is Russia’s low wages.

Roscosmos approves space tourism project

The competition heats up? Russia’s giant aerospace monopoly Roscosmos has given formal permission for the development of a suborbital space tourism project, proposed by the formally independent company, KosmoKurs.

Russia’s State Space Corporation Roscosmos has admitted the private space company KosmoKurs to working out a project for the development of a reusable system for space tourism flights, KosmoKurs Director General Pavel Pushkin said on Friday. “Our technical design specification was approved by Roscosmos two days ago. The system’s preliminary design will be created with this document,” Pushkin said at the InSpace forum.

According to him, the technical design specification has also been approved by the Central Research Institute of Machine Building (TsNIIMash) and the Keldysh Research Center. In addition, Pushkin said, Roscosmos chief Igor Komarov has already approved the project. “Igor Anatolyevich has taken the project with enthusiasm and gave orders to promote this project”, Pushkin said.

So, if I understand this right, this private company had to get approvals from Roscosmos’s bureaucracy, two other competitive groups within Roscosmos, plus the head of Roscosmos itself, before it would be allowed to proceed with building its independent suborbital operation. I wonder how many bribes KosmosKurs had to pay along the way. I also wonder what kind of quid pro quo deals that had to make in order get those other institutes to give their okay.

With Russia’s aerospace industry function under this kind of set-up, I doubt they are going to get much done in the coming decades.