Boeing losses total almost a billion dollars this quarter

The hits to Boeing keep coming: In addition to the $1.5 billion it has had to write-off because of problems with its Starliner capsule, Boeing is now reporting losses in the third quarter totaling almost a billion dollars, with half those losses coming from overruns on its fixed price contract to provide Air Force One to the U.S. government.

The $482 million loss on the high-profile presidential plane was due to “higher estimated manufacturing costs related to engineering changes, labor instability and the resolution of supplier negotiations,” Boeing Chief Financial Officer Brian West said during the company’s third-quarter earnings call Wednesday.

Boeing has faced numerous problems with the VC-25B program, including shortages of workers and parts, that have delayed delivery of the first of two Air Force One jets until 2027. To date, the company has lost over $2.4 billion on the program, according to a company spokesperson. CEO Dave Calhoun said last year that Boeing should have never agreed to the fixed $3.9 billion price tag.

The second-largest contributor to losses for Boeing’s Defense, Space & Security (BDS) business was a satellite program that cost the company $315 million in the third quarter. The company wouldn’t identify the program, but West said the loss is “tied to customer considerations and higher estimated cost to deliver a highly innovative satellite constellation contract that we signed several years ago.” [emphasis mine]

Let me translate what CEO Calhoun was really saying in the highlighted sentence: “We want a blank check! Boeing is incapable of producing anything based upon a standard fixed price, and wants the federal government to go back to open-ended cost-plus contracts that put no limit to overruns and schedule delays.”

Whether Boeing gets that blank check or not really depends on Boeing. It is very possible our corrupt legislators in Congress — who think money grows on trees — will bring these cost-plus contract back, but I doubt Boeing will win many such contracts in the near future, based on its horrible performance on all levels technically. It needs to completely clean house, with major shake-ups in management and staff, as whoever is working there now is simply doing a terrible job.

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SpaceX gets ESA contract to launch up to four of its Galileo GPS-type satellites

The European Space Agency (ESA) this week announced that it has awarded SpaceX a launch contract to put up to four of its Galileo GPS-type satellites into orbit. Though the deal is signed, approval must still be obtained by ESA’s members and executive commission.

This will be the first time SpaceX will launch any ESA satellites, and the first time in fifteen years that a Galileo satellite will launch outside of Arianespace operations. Previously the Russians had done a number of Galileo launches, using its Soyuz-2 rocket launching out of Arianespace’s French Guiana spaceport, but that partnership ended with Russia’s invasion of the Ukraine.

For the ESA the situation is even worse. It needs SpaceX to launch its satellites because at present it doesn’t have any of its own rockets to do it. The Ariane-5 is retired, and the new Ariane-6 (meant to replace it) is long delayed, and will not have its first test launch until next year, at the earliest. The Vega-C (too small for Galileo anyway) is also grounded due to design defects in the nozzle of its upper stage, while the Vega rocket it replaces has only one more launch before its own retirement.

Much like the Axiom-UK deal posted below, the American commercial space industry is once again making money from others, solely due to the capabilities developed in the past decade due to competition and freedom.

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Axiom signs deal with the United Kingdom to fly all British mission

The space agency of the United Kingdom today announced that it has signed a deal with Axiom to fly an manned mission in space, with four astronauts spending up to two weeks in space (likely in a SpaceX Dragon capsule).

The flight, estimated to cost around £200 million, is being organized in cooperation with the European Space Agency (ESA), though all the astronauts will be British. The announced commander, Tim Peake, spent six months on ISS in 2015, and has come out of retirement to do the flight.

It is also unclear at this moment whether it will fly to ISS, or simply remain in orbit. In fact, few specific details have yet been released.

The bottom line however is that the new American space industry is going to make money from Britain’s desire to be a space power. Seems like a good deal to me.

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No Starship/Superheavy launch likely until January?

No Starship test launch until 2024
SpaceX is ready but the federal government says “No!”

We’re from the government and we’re here to help! In describing the effort of Senator Ted Cruz (R-Texas) to help SpaceX prod the federal bureaucracy into approving a new launch license for the company’s Starship/Superheavy rocket, space writer Mark Whittington included this significant but not previously mentioned tidbit that might help us predict when Fish & Wildlife (FWS) might finally give its okay for a launch:

The FWS has as long as 135 days to complete its review.

Let’s review the situation to understand what this tidbit means. At present it appears the FAA is ready to issue a launch licence, having closed its own investigation into the April Starship/Superheavy test flight on September 8, 2023.

At the time the FAA however was very clear: No launch license until Fish & Wildlife gave its environmental approval as well. Never before had this environmental agency had veto power over launches, but under the Biden administration it now has it.

Though Fish & Wildlife could have begun its own investigation in April, and met the 135-day deadline to give its approval for a launch the same time as the FAA, in September, it now appears that it did not start its clock ticking until after the FAA closed its work. If so, it appears Fish & Wildlife has until early January to complete its investigation.

Since FWS admitted in April, right after the failed test launch of Starship/Superheavy, that it caused no harm to wildlife, there appears no reason for this long delay.

The delay therefore can only be for two reasons, neither good. Either the people at Fish & Wildlife are utterly incompetent, and need eight months to write up the paperwork (even though in April they already knew that there was no reason to delay), or they are vindictive, power-hungry, and wish to exercise an animus against SpaceX in order to hurt the company.

Mostly likely we are seeing a combination of both: The bureaucrats at Fish & Wildlife are incompetent and hate SpaceX, and are using their newly gained power over issuing launch licenses to hurt it.

Either way, if Fish & Wildlife uses its entire 135-day window to issue its launch approval to SpaceX, no launch can occur this year. SpaceX will be stymied, and the development of this new heavy-lift reuseable rocket, possibly the most important new technology in rocketry ever, will be badly crushed. Not only will NASA’s Artemis program be damaged (it wants Starship as its manned lunar lander), SpaceX might face huge financial loses, as it needs Starship to launch and maintain its Starlink communications constellation.

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ULA sets Christmas Eve as launch date for first Vulcan rocket launch

In an interview for CNBC, ULA’s CEO revealed that the company has now scheduled the first orbital launch of its new Vulcan rocket for December 24, 2023, Christmas Eve, with a backup launch window in January.

The rocket will carry Astrobotic’s Peregrine lunar lander, targeting the western edge of the lunar mare dubbed Mare Imbrium. It will also carry human ashes to be buried in space, from the private company Celestis.

Vulcan was also originally supposed to carry Amazon’s first two test Kuiper satellites, but the delays in developing Vulcan forced ULA to use an Atlas-5 rocket instead, that launched on October 6th.

If the launch is successful, the company will try to quickly ramp up its launch pace to 24 times per year, in order to meet the contract for 47 launches it has with Amazon to launch Kuiper satellites, as well as its contract obligations to the Pentagon to launch military satellites.

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Varda signs deal with Australian private spaceport operator to land its capsules

Blocked from landing its American-built space capsules by the American government, the startup Varda has now completed negotiations and signed an agreement with Southern Launch, an Australian private spaceport operator, to land its capsules at the Koonibba Test Range northwest of Adelaide.

Varda’s business plan is to launch unmanned capsules in which pharmeceuticals and other products that can’t be made on Earth are manufactured, then return the capsule to earth where they are sold for a profit. This deal will allow Varda to land its next capsule there in 2024.

Meanwhile, Varda first capsule, presently in orbit after manufacturing pharmeceuticals for HIV, appears to be a total loss because the FAA and the Pentagon refused it permission to land in the U.S., for what appear to be purely bureaucratic reasons.

There was no single specific issue that held up the reentry, he said. “It was ultimately a coordination problem amongst three different groups that had not worked through this operation before.” He added that there were no safety concerns with Varda’s spacecraft or its ability to meet requirements for an FAA license. An additional challenge is that Varda is the first company to seek an FAA reentry license through a new set of regulations called Part 450. Those regulations are intended to streamline the process but, on the launch side, have been criticized by companies for being difficult.

The U.S. government is now the enemy of its citizens, so incompetent that it actually works to block them from achieving their goals.

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Space Perspective unveils restroom for its high altitude tourist balloon

Neptune's restroom
Click for original image.

The Florida company Space Perspective yesterday unveiled the restroom for its high altitude tourist balloon, Neptune, that intends to take passengers on six to eight hour flights to nineteen miles elevation.

The goal was to provide an environment closer to a spa than to a typical aircraft setting, said Dan Window, who oversees all aspects of design at Space Perspective alongside Isabella Trani. “Overall, we embraced softness and optimistic color tones in the Space Spa, which play nicely with the contrasting colors you will see through its two windows,” Window said in the same statement. “We’re also using light washes, for example, to create ambience and allow for customization of the environment as well as discourage reflections in the windows. Soothing soundscapes will be unique to what you experience in the Space Lounge, and we brought in plants as a callback to the experience that Space Perspective’s founders had in Biosphere 2.

Based on the artist’s renderning to the right, the restroom is still a very small space, smaller than the smallest bathroom in most homes.

Space Perspective says it has received deposits for more than 1,600 flight tickets at 125K each, representing $200 million in potential income. It hopes to complete its first test flight next year.

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SpaceX successfully completes two Starlink satellite launches today

SpaceX today successfully completed two Starlink satellite launches, first putting 21 satellites in orbit from Vandenberg in the early morning hours and then launching another 23 satellites from Cape Canaveral in the evening.

Both first stages successfully landed on their drone ships, respectively in the Pacific and Atlantic. The first completed its sixteenth flight, the second its fourth flight.

The leaders in 2023 launch race:

76 SpaceX
46 China
13 Russia
7 Rocket Lab
7 India

American private enterprise now leads China in successfully launches 88 to 46, and the entire world combined 88 to 74. SpaceX by itself now leads the entire world combined (excluding American companies) 76 to 74.

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The reshuffling of Blue Origin’s management continues

With the announcement yesterday that another high level executive was leaving the company — the third in less than a month — Blue Origin does appear to be making major changes in its management as well as its entire organizational structure.

Blue Origin CEO Bob Smith told employees in an email on Friday that Mike Eilola, the company’s senior vice president of operations since 2021, “is leaving the company for personal reasons” on Nov. 3 and will have his unit split into two new organizations.

Eilola’s departure follows plans announced last month by Bezos to replace Smith, who has been Blue Origin’s CEO since 2017, with longtime Amazon executive Dave Limp by the end of the year. And Brent Sherwood, the head of what had been the company’s research and development unit, will depart next month, Reuters has reported.

This is not the only management restructuring. It has also shifted its lunar lander project into its own division, as well as created a new separate division for developing in-space robotic servicing and orbital tug products.

It finally appears that Jeff Bezos is taking action to get his company working again, after more than a half decade of non-achievement since Bob Smith took over in 2017. Hopefully these changes finally will produce results.

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Japan awards Ispace $80 million to develop larger lunar lander

The Japanese government, not its space agency JAXA, today announced it has awarded the commercial company Ispace an $80 million grant to develop a larger lunar lander, following its failed attempt earlier this year to land its first Hakuto-R1 lander on the Moon.

Japan will provide a subsidy of up to 12 billion yen ($80 million) to moon exploration startup ispace (9348.T) as part of a grant programme for innovative ventures, industry minister Yasutoshi Nishimura said on Friday.

The new lander is targeting a 2027 launch, and according to the company’s own statement [pdf] will replace the Hakuto-R lander being used on its first two lunar missions, as well as the Apex lander the American division of Ispace is now building for NASA. It also appears that the contract is fixed price, and will only be paid out when the company achieves actual milestones of development.

In other words, the Japanese government is doing what NASA is now doing, moving away from a government model, where its space agency JAXA builds and controls everything, to a capitalism model, where it buys what it needs from the private sector. That JAXA did not issue this award demonstrates this transition, in that until now all such space contracts were through that agency solely.

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Musiquizzers – Guess that song: 60’s

An evening pause: It is amazing how many of these short clips (as well as the full songs) are still so familiar and well known, considering its more than a half century since they were first played on the radio. Speaks well to their originality and uniqueness.

But how many of the songs and performers can you guess?

Hat tip Diane Zimmerman.

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At Senate hearings numerous launch companies complain of regulatory bottleneck

At a hearing in the Senate yesterday officials from SpaceX, Blue Origin, and Virgin Galactic all expressed strong concerns about how the regulatory bottleneck at the FAA is damaging the entire launch business.

Gerstenmaier emphasized that the FAA’s commercial space office “needs at least twice the resources that they have today” for licensing rocket launches. While he acknowledged the FAA is “critical to enabling safe space transportation,” Gerstenmaier added that the industry is “at a breaking point.”

“The FAA has neither the resources nor the flexibility to implement its regulatory obligations,” Gerstenmaier said.

…The other four panelists’ testimonies largely echoed SpaceX’s viewpoint on the need to bolster the FAA’s ranks and speed up the process of approving rocket launches. Phil Joyce, Blue Origin senior vice president of New Shepard, said the FAA “is struggling to keep pace” with the industry “and needs more funding to deal with the increase in launches.”

Likewise, industry expert Caryn Schenewerk, a former leader at SpaceX and Relativity Space, said that the FAA’s recent changes have yet to “streamline licensing reviews” and instead have “proven more cumbersome and costly.”

Wayne Monteith — a retired Air Force brigadier general who also led the FAA’s space office — said that Congress should consider consolidating space regulations. “I believe a more efficient one stop shop approach to authorizing and licensing space activities is necessary,” Monteith said.

As always, the focus is on giving the government agency “more resources”. No one ever suggests that maybe its inability to meet the demand is because of mission creep, in which the government continually grabs more regulatory power than it is supposed to have, which then requires it to have additional resources, which then allows it to grab even more power, which then requires more resources, and on and on the merry-go-round goes.

To really solve this problem we need to trim the regulatory framework. The FAA’s responsibilities must be cut, not enhanced. It must be told it “will issue” launch licenses, rather than take the position it “might issue” them. It also must be told to cut back on the checklists it is demanding from companies. All that should concern it is scheduling and arranging air traffic and the launch range to prevent conflicts. Beyond that any regulation is simply overreach, and is something that was never under its control in the past.

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SpaceX to push for more than 140 launches in 2024

At a Senate hearing yesterday, a SpaceX official revealed the company is aiming to achieve 144 launches in 2024, an almost 50% increase from the record-setting pace it is maintaining this year.

“This year, we’re going to attempt to fly 100 flights,” Bill Gerstenmaier, the vice president of build and flight reliability at SpaceX, said on Wednesday (Oct. 18) during a hearing of the U.S. Senate’s Subcommittee on Space and Science. “As we look to next year, we want to increase that flight rate to about 12 flights per month, or 144 flights,” he added during the hearing.

Getting to 12 launches per month will be a challenge, but not an unreasonable one. So far this year the company has routinely launched more than six times per month, but it has been pushing that rate since the summer, with it many times trying to do launches almost daily for a stretch. Often its biggest problem isn’t the company or rocket, but the weather and scheduling at Cape Canaveral, as there are others that wish to launch there.

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Israel negotiating with SpaceX to use Starlink

Israel is now in negotiations with SpaceX to get use of its Starlink constellation for communications, especially in the region around Gaza where the present conflict is ongoing.

Starlink currently isn’t available in Israel, so this would be the first time the service is introduced in any capacity. As it seeks to bolster its own communications during wartime, it is also looking into halting cell and internet communications in Gaza, that same official said.

“The activity of coordinating the Israeli company Starlink is taking place, enabling the operation of communication terminals by the company SpaceX, which will allow a wide broadband internet connection in Israel,” Israel Minister of Communications Shlomo Karhi said on X. “Additionally, under the guidance of the minister, the ministry promotes the purchase of these satellite devices for the benefit of regional councils and community leaders in conflict zone settlements.”

By having Starlink available, Israel could use it as it shut down the cell and internet capabilities being used by Hamas.

Whether a deal will be made remains unclear, as Musk has shown ambivalence about Starlink’s contribution in the Ukraine war.

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India rocket startup Agnikul raises $26.7 million in new private investment capital

The new colonial movement: The Indian rocket startup Agnikul has now raised an additional $26.7 million in private investment capital, bringing its total cash on hand now to about $40 million.

The company hopes to complete the first suborbital launch of its Vikram-S rocket in mid-November. If successful, it will be the second private rocket startup in India to do it, joining Skyroot, which did its first suborbital test flight last year. Both companies plan orbital versions of these rockets, and are also likely bidding to take over the SSLV (Small Satellite Launch Vehicle) rocket from India’s space agency ISRO. The Modi government is offering to literally give it to a private company to operate for profit.

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SpaceX launches another 22 Starlink satellites, using a first stage flying for the 16th time

SpaceX today successfully launched another 22 Starlink satellites, its Falcon 9 rocket lifting off from Cape Canavera with a first stage flying for the 16th time.

The first stage successfully landed on a drone ship in the Atlantic. By my count SpaceX now has two stages that have flown seventeen times, and one that has flown sixteen times. While not there yet, its fleet of first stages is getting close to accumulating more flights than NASA’s space shuttle fleet.

The leaders in 2023 launch race:

74 SpaceX
46 China
13 Russia
7 Rocket Lab
7 India

American private enterprise now leads China in successfully launches 86 to 46, and the entire world combined 86 to 74. SpaceX by itself is once again tied with the entire world combined (excluding American companies) 74 to 74, with another launch scheduled for late tomorrow.

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