Despite a complete lack of any customers, Spaceport America in New Mexico now plans to build a “reception center.”

The New Mexico Spaceport Authority has decided it needs to build another building at Spaceport America, even though that spaceport has seen no significant business in its almost two decades of operation, and has little indication of any future business to come.

The Spaceport Technology and Reception Center’s mission “will be to become the welcoming face to staff, visitors, and prospective customers visiting or working at Spaceport America. The proposed 30,000 square foot STARC building will be a multi-use facility; it will house the Spaceport’s core IT server center, staff offices and conference rooms, an Auditorium, food preparation and dining area, virtual experience center, and 2nd and 3rd floor lounge and viewing areas,” according to a request for proposals (RFP) issued by the New Mexico Spaceport Authority (NMSA). “The new building will provide modern, comfortable work and meeting spaces for NMSA staff and a means to receive, entertain and educate groups of visitors and/or potential customers,” the document added.

The article goes on to detail how NMSA has spent millions of tax dollars for years, with the promise of billions of revenue from space launches and thousands of local jobs, all of which have turned out to be pie in the sky. Other than Virgin Galactic, which remains a very questionable customer, no major rocket companies have shown any interest in launching from this spaceport.

To propose spending more on another building that will likely sit empty most of the time is absurd. As the article notes, New Mexico has many much more compelling issues to spend its taxpayer money. This boondoggle should be shut down.

NM legislators propose sales tax on Virgin Galactic tourist flights

We’re here to help you: A bi-partisan proposal by two New Mexico legislators would create a 6% to 9% sales tax on any Virgin Galactic space tourist flights that take off from Spaceport America.

“If the flights really became regular, that could be a nice source of income, not only for the state but also from the GRT shared with the local communities,” [one of] the bill’s … sponsors, Democratic Rep. Matthew McQueen, said.

…”I can’t think of a particularly good reason why we wouldn’t tax this activity,” McQueen said.

McQueen might be too stupid to think of a reason, but I can think of dozens, and they are called the many other airport runways across the globe where Virgin Galactic can launch tourists and bypass this tax. The company already has agreements with several.

The stupidity of this legislative proposal at this time is compounded in that Virgin Galactic, the only customer Spaceport America presently has, is struggling badly. It has yet to fly any commercial flights, and is facing investor lawsuits and an aging fleet. Adding a tax on top of these problems could kill it, thus making this bill a perfect example of killing the goose that laid the golden egg, before the goose is even born. Moreover, it will certainly discourage anyone else from launching from New Mexico, especially as there are so many other spaceport options popping up worldwide with no such sales tax.

More Spaceport America corruption allegations flung about in New Mexico

New allegations of corruption and lawbreaking against Michelle Lujan Grisham, the Democrat Party governor of New Mexico, were revealed in a lawsuit filed this week by the former chief financial officer of Spaceport America, Zach DeGregorio.

Zach DeGregorio, the former Chief Financial Officer of Spaceport America, alleges that one of Grisham’s political appointees, Alicia Keyes, encouraged him to falsify an economic impact study. He also alleges that Keyes mishandled a bond refinancing for the purpose of defrauding the state. When DeGregorio attempted to report the wrongdoing, he claimed, he was threatened with investigations and a firing.

…The lawsuit also alleges that Spaceport America’s chief client, Virgin Galactic, and its CEO, Richard Branson, bribed Lujan Grisham in exchange for “essential business” status during COVID-19 shutdowns. The governor’s office met with Virgin Galactic shortly before Grisham “ma[d]e changes to the NM Spaceport Authority board,” “ma[d]e staffing changes at the NM Spaceport Authority,” and “made operational changes at the NM Spaceport Authority that benefited Virgin Galactic at the expense of other customers and the NM taxpayers,” according to the lawsuit.

You can read the actual filing here [pdf].

DeGregorio resigned in 2020 after filing an earlier complaint alleging that the CEO of Spaceport America, Daniel Hicks, had broken several laws in operating the spaceport. In the new lawsuit DeGregorio also alleges that Hicks tried to illegally access his email account to read private emails concerning these allegations.

Spaceport America was established a previous Democratic Party governor, Bill Richardson, based on Richard Branson’s false promises that Virgin Galactic would soon be flying hundreds of tourist flights yearly, thus attracting other space-related business to New Mexico. Since then all the state has gotten from the spaceport is expenses, almost no business, and a lot of scandal. This story is not the first, and I suspect it will not be the last, especially if Virgin Galactic goes bankrupt in the next few years (something I personally expect).

What Spaceport America will likely not get is actual business. It can’t work for orbital flights, being in the interior, and there isn’t enough orbital runway business to sustain it, especially since there are thousands of other runways to choose from.

Spaceport America in New Mexico fires its head

The board of Spaceport America, Virgin Galactic’s launchsite for its SpaceShipTwo suborbital manned spacecraft, yesterday fired its long time Executive Directory Dan Hicks, at the same time governor of New Mexico removed one board member.

Hicks, the spaceport’s CEO since 2016, has been on administrative leave since June while allegations of mismanagement and abuse of authority have been under investigation by the New Mexico State Auditor and the New Mexico Spaceport Authority, the public body governing the spaceport.

The McHard Accounting Consulting firm, a forensic accounting firm based in Albuquerque, conducted an investigation which was then referred to the state auditor. Keyes informed a state legislative committee this summer the allegations included potential criminal activity.

Spaceport American had been made gigantic promises by Richard Branson back in the mid-2000s, including hundreds of tourist flights per year on SpaceShipTwo, all of which would bring lots of cash to the spaceport and to New Mexico. All came to naught. I suspect those failed promises are somehow connected to the accusations here.

EXOS to test fly reusable suborbital rocket in New Mexico

Capitalism in space: EXOS Aerospace has chosen Spaceport America in New Mexico as the location where it will test fly its reusable suborbital rocket dubbed SARGE.

EXOS has completed the design, test and build; has received its FAA launch license and completed the final integration and test hovering for the rocket. A successful test flight is needed to solidify the company’s plans to use the technology as the basis for a planned reusable Orbital class vehicle, the company said in a pres release issued Tuesday.

“We are excited to enter into the testing phase of our SARGE platform at Spaceport America, and even more excited to reveal our plans for our Jaguar Reusable (first stage) LEO launcher,” EXOS COO John Quinn said in a prepared statement. “We look forward to enabling space research, manufacturing and educational opportunity for the world by providing frequent suborbital flights that provide fast and affordable access to space.”

Spaceport American CEO Dan Hicks said a successful test flight could lead to further testing and development at the spaceport.

EXOS is another one of the host of new smallsat rocket companies vying for expected large launch needs in the 2020s. For Spaceport America, a state-run spaceport that was built for Virgin Galactic and its hyped surge in space tourism that never happened and thus has seen practically no activity for the past decade, this announcement is helpful in its effort to attract other launch business.

Virgin Galactic test flights to resume in 2015?

I’ll believe it when I see it: The executive director of the New Mexico Spaceport Authority, which runs Spaceport America, said Tuesday that she hopes Virgin Galactic will resume test flights of a SpaceShipTwo suborbital ship sometime in 2015, with commercial flights beginning in 2016.

She claimed that work on the new ship is about 80% completed, with construction of another ship also underway.

Forgive me if I have my doubts. Virgin Galactic has spent more than a decade making these promises, with no results.

New Mexico legislature advances spaceport sale bill

A state bill to sell Spaceport America, New Mexico’s spaceport built to service Virgin Galactic’s oft-delayed space tourism business, has advanced out of its first committee.

The bill still needs to clear two more committees before it gets a floor vote, but considering the lack of progress at Virgin Galactic, I would not be surprised if it passes. The high hopes that created this spaceport a decade ago have now faded into a boondoggle that New Mexico probably can no longer afford.

New Mexico wants out of the spaceport business

A state law-maker in New Mexico has introduced a bill to sell off the state’s spaceport, Spaceport America.

New Mexico spent $220 million to build it and Senator Munoz now says the state has come up short. “It’s not a revenue stream and they don’t know how to get that revenue stream and that’s what needs to change,” he said. He said a private company would do a better job behind the controls and believes there is a buyer out there.

The heart of the problem here is the long delayed first flight by Virgin Galactic. Spaceport America essentially has this one customer, and Virgin Galactic has simply failed to get off the ground with its commercial flights.

Virgin Galactic and the FAA on Friday reached agreement allowing the company to fly its suborbital flights from Spaceport America in New Mexico.

The competition heats up: Virgin Galactic and the FAA on Friday reached agreement allowing the company to fly its suborbital flights from Spaceport America in New Mexico.

I suspect that Virgin Galactic wants to hurry its debut in New Mexico in order to help quell the doubts that have been building about the company’s future.

The next test flight of a version of SpaceX’s Grasshopper could occur in New Mexico in December.

The next test flight of a version of SpaceX’s Grasshopper could occur in New Mexico in December.

The story says this test will be with Grasshopper, but I think that is a mistake. Unless SpaceX is using this name for all its vertical landing test vehicles, the company had said the test vehicle to fly in New Mexico would be a full scale Falcon 9 first stage, with nine Merlin engines, not one as has Grasshopper.

SpaceX is moving its Grasshopper test program to New Mexico’s spaceport.

SpaceX is moving its Grasshopper test program to New Mexico’s spaceport.

The move confirms big plans for the test bed. Flights to date have been conducted at SpaceX’s engine test site in McGregor, Texas. SpaceX received a waiver from the FAA to fly Grasshopper up to 11,500ft from McGregor, but Spaceport America is an FAA-certified spaceport where no where no waivers are required. “Spaceport America offers us the physical and regulatory landscape needed to complete the next phase of Grasshopper testing,” says SpaceX president Gwynne Shotwell.

A (new) Mexican standoff at the old spaceport.

A (new) Mexican standoff at the old spaceport.

Messier not only provides a detailed analysis of the negotiations on-going between Virgin Galactic and Spaceport America over liability issues, he also provides context, much of which is not encouraging. For example,

SpaceShipTwo is set to begin its first powered test flights later this year using a “starter motor” that will be smaller than the full-scale hybrid engine that will be used for flights into space. The motor will allow pilots to test the space plane in the transonic flight region, which would be a major step forward.

Whether the full-scale RocketMotorTwo engine, powered by nitrous oxide and rubber, will be ready to fly this year is an interesting question. There have been stories for years – persistent, consistent and never really denied – that the motor just doesn’t work very well. Hybrid motors can function effectively for smaller vehicles, such as the smaller SpaceShipOne vehicle that flew in 2004, but are difficult to scale up. SpaceShipTwo is three times larger than its predecessor.

Meanwhile, there are the liability questions which might force Virgin Galactic, and all other private space companies, to flee New Mexico. The analysis suggests that the taxpayers of New Mexico might have paid for a very expensive spaceport that might never pay for itself.

Virgin Galactic hosts an industry day at New Mexico spaceport

Virgin Galactic announced today that it will co-host an industry day at Spaceport America in New Mexico on October 18 in order to locate suppliers for its space tourism business.

“This is a fantastic opportunity for companies ranging from local New Mexico firms to national corporations to understand our unique needs for goods and services, including our requirements in building and servicing multiple commercial spaceships as the market further develops,” said Virgin Galactic’s President and CEO George Whitesides. “Our intention is to establish these relationships and emphasize our desire to hire locally as much as possible.”