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The heat of competition: Virgin Galactic’s Arab investors have decided to hold off further commitment to the project until the investigation of the SpaceShipTwo crash is completed.
The backing of deep-pocketed Aabar Investments, run by the Abu Dhabi government, may be crucial to Virgin Galactic as it struggles to recover from the accident, which killed one test pilot and left another seriously injured. “As an investor, Aabar is concerned of course. It is a challenge – nothing can be decided until investigations are over,” the source said, declining to be named because of the sensitivity of the subject. “For now, it is a wait-and-watch situation.” Asked if Aabar was still committed to Virgin Galactic, the source said only: “There is time to make an assessment of the future strategy.”
This is hardly a surprise. Nor does it guarantee an end to Richard Branson’s company. What it signals is a recognition that Virgin Galactic has had a serious problem and must demonstrate that it can fix that problem before it will regain the trust of its investors.