Amazon files to have shareholder lawsuit dismissed

On December 11, 2023 Amazon requested dismissal of a shareholder lawsuit against it for acting in bad faith by excluding SpaceX in its initial launch contracts with ULA, Arianespace, and Blue Origin to put its Kuiper constellation of satellites into orbit.

The lawsuit claimed that the board performed little diligence on the proposed contracts to launch the 3,236-satellite constellation with the Ariane 6, New Glenn and Vulcan Centaur rockets. The combined contracts were, it stated, the second largest capital expenditure in Amazon’s history at the time, trailing only its $13.7 billion acquisition of grocer Whole Foods.

The lawsuit stated that the board and its audit committee spent “barely an hour” reviewing those contracts, including those that would go to Blue Origin and ULA. Blue Origin is owned by Amazon founder and former chief executive Jeff Bezos, while ULA has a contract with Blue Origin to use BE-4 engines on its Vulcan rocket. The suit estimated that nearly 45% of the value of the contracts goes to Blue Origin either directly or through the BE-4 engine contract with ULA.

Amazon’s call for dismissal disputes these claims, stating that the board spent far more time on the issue, and then documents this. Interestingly, it makes no mention of the recent additional launch contract Amazon signed with SpaceX on December 3, 2023, but it is obvious that this filing was timed to occur afterward in order to strengthen Amazon’s case.

Amazon’s response (available at the link above) is heavily redacted, so some of the company’s claims are difficult to assess. For example, if the board did consider the issue of launch contractors properly, the subject of using SpaceX should have come up and been discussed at length. The redactions make it impossible to determine if this was so. If anything, what can be read suggests SpaceX was dismissed as an option far too quickly.

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A tour of Blue Origin’s Huntsville Machine Shop & Manufacturing Facility

Video below, which is heavily focused on machining and machine shop work. The facility, the Machine Shop & Manufacturing Facility in Huntsville, appears to build the BE-3U engine (to be used for the New Glenn upper stage), though I thought some of the engines shown could be BE-4’s. I hope my readers can help clarify this.

While this video actually reveals very little solid information, one important fact was disclosed near the end, when the tour reached the final engine assembly point. There the Blue Origin employee mentioned that they are assembling three engines at this facility. Considering facility’s size and the number of engines that will be needed once New Glenn begins flying, I was not impressed. Does it really take this much space and equipment to only build three rocket engines? Am I wrong?

Hat tip to reader John Harman, who is himself the owner of an aerospace manufacturing company.

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Amazon signs launch contract with SpaceX

Amazon on December 1, 2023 announced it has signed a three-launch contract with SpaceX to place its Kuiper satellites into orbit, supplementing the launch contracts it presently has with ULA, Arianespace, and Blue Origin. From the Amazon press release:

SpaceX’s Falcon 9 is a reusable, two-stage launch vehicle designed for the reliable and safe transport of people and payloads into Earth orbit and beyond, and it has completed more than 270 successful launches to date. Project Kuiper has contracted three Falcon 9 launches, and these missions are targeted to lift off beginning in mid-2025.

In 2022 Amazon had signed contracts with the other three launch companies, with ULA getting 38 Vulcan launches (in addition to 9 already signed for its Atlas-5), Arianespace getting 18 Ariane-6 launches, and Blue Origin getting 12 New Glenn launches.

The problem however is that, except for the Atlas-5, none of these rockets has yet completed its first flight. Since Amazon’s FCC license requires it to get half of its constellation of 3,200+ satellites into orbit by 2026 or face penalties, the uncertainty of these rockets has probably forced Amazon management to consider SpaceX, despite likely hostility to such a deal from Jeff Bezos (owner of Blue Origin and founder of Amazon).

Amazon management also probably decided to sign this deal because of a lawsuit filed in September 2023 by company stockholders, accusing the management of neglience because it never even considered SpaceX in earlier contract negotiations while giving favoritism to Bezos’s company Blue Origin. At that time Amazon had already paid these launch companies about $1.7 billion, with Blue Origin getting $585 million, though not one rocket has yet launched, with Blue Origin showing no evidence that a launch coming anytime soon.

The impression of a conflict of interest by Amazon’s board of directors appeared very obvious. This new SpaceX contract weakens that accusation.

More important the deal will help Amazon actually get its satellites into orbit. It appears that reality is finally biting at Amazon, and its management has realized that the three companies they have been relying on might not be up to the job (especially Blue Origin).

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Update on Blue Origin activity at Cape Canaveral

Link here. Much of the activity the article describes has to do with preparing for a first launch of Blue Origin’s New Glenn rocket, suggesting that it might finally take place in 2024 as presently planned.

In fact, the activity also suggests that the company intends to attempt to recover its first stage from a landing ship in the ocean on that first flight.

In early October, a large Liebherr mobile crane was delivered to Port Canaveral to support Blue Origin’s continuously growing presence on the Space Coast. Once New Glenn begins flying, this crane will assist recovery operations by lifting the 57.5-meter-tall first stage from the landing vessel and onto shore.

More recently on Nov. 27, a large jig on a barge was towed into Port Canaveral and proceeded to be offloaded by Blue Origin’s new crane. This custom-made structure appears to be a stand to support New Glenn first stages after being offloaded from its landing vessel. Various work platforms will allow crews to inspect the boosters in different locations before the booster itself is transported back to the factory, or the future refurbishment facility which is still yet to be built.

It also appears the company has built a full scale test version of New Glenn to allow testing of all operations prior to launch.

Keep your fingers crossed. With former CEO Bob Smith gone, Blue Origin might finally be coming back alive at last.

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Amazon’s first two Kuiper satellites in orbit worked exactly as planned

Amazon announced today that its first two Kuiper satellites, launched into orbit by ULA’s Atlas-5 rocket on October 6, 2023, have worked exactly as planned, thus allowing the company to begin building operational satellites.

With the prototypes’ testing in space now complete, Badyal said Amazon plans to begin building the first production Kuiper satellites in December and launch the first satellites for its network in the “latter part of the first half” of 2024. Badyal emphasized that Amazon wasn’t sure what performance to expect from the prototype satellites, since “you don’t know how well it’s going to work in space.”

“They’re working brilliantly,” Badyal said.

The need of Amazon to start launching lots of satellites next year — in order to meet its FCC license requirements to put half of its 3,000+ constellation in orbit by 2026 — puts great pressure on ULA, Blue Origin, and Arianespace to get their new but as yet unlaunchd rockets operating. All three have big launch contracts with Amazon, but none presently appear to have the capability to meet the demands of those contracts.

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Bob Smith out at Blue Origin

Though this change probably comes four years late, the CEO of Blue Origin, Bob Smith, announced today that he is resigning from the company, effective at the end of the year.

The company’s incredibly slow implementation of all of its projects, which begun when Smith took over in 2017, has made it something of joke punchline in the space business. Suborbital test flights of its New Shepard spacecraft went from almost monthly test flights to none for years. Its orbital New Glenn rocket is four years behind schedule, and it is still doubtful it will fly next year. And the company’s BE-4 rocket engine was also years behind schedule and even now has caused enormous delays for its one outside customer, ULA, delaying the launch of its Vulcan rocket by at least four years. As noted at the link:

Smith brought a traditional aerospace mindset into a company that had hitherto been guided by a new space vision, leading to a high turnover rate. And Blue Origin remains significantly underwater, financially. It is likely that Bezos is still providing about $2 billion a year to support the company’s cash needs.

Crucially, as Blue Origin meandered under Smith’s tenure, SpaceX soared, launching hundreds of rockets and thousands of satellites. Smith, clearly, was not the leader Blue Origin needed to make the company more competitive with SpaceX in launch and other spaceflight activities. It became something of a parlor game in the space industry to guess when Bezos would finally get around to firing Smith.

Smith will be replaced by Dave Limp, who had been Amazon’s VP for devices and services until last month. Whether he can get this company moving again is still an unknown, considering he was also involved in launching Amazon’s Kuiper satellite constellation, the development of which has been as slow and uninspiring as all of Blue Origin’s projects.

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Update on Blue Origin’s New Glenn

Link here. Based on this detailed update, the long delayed launch of Blue Origin’s orbital New Glenn rocket appears to finally be visible on the distant horizon.

Most of the work described involves building supporting facilities, such as a new building for refurbishing rockets after launch. However, this quote suggests the company might finally be getting close to doing something real:

During a panel at the World Satellite Business Week, Blue Origin’s Jarrett Jones stated Blue Origin has four boosters in various stages of production, and testing is going well.

In addition to the production of New Glenn, Blue Origin has continued to prepare LC-36 [the launchpad] to support the testing of the hardware currently being manufactured. In recent months, Blue Origin has conducted a number of tests with both the main transporter erector, which will be used to support a fully stacked New Glenn, as well as a smaller transporter erector, which appears to be used to test New Glenn’s second-stage on the launch pad. A second-stage simulator has already been observed on this transporter erector.

Though encouraging, the article at the link still left me with a feeling that a lot of work is being done on everything but the rocket itself. Hopefully this feeling will dissipate soon with the appearance of that first rocket on the launchpad. Right now Blue Origin officials have said they are aiming for that first launch next year, but they have made that same promise now for three straight years.

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Update on the status of Vulcan, Ariane-6, and New Glenn

Link here. This excellent article is focused on whether these three new rockets, none of which has yet completed its first test flight, will be able to meet their launch contract obligations with Amazon, which needs to launch at least 1,600 satellites of its Kuiper broadband constellation by July 2026 to meet its FCC license requirements. Those requirements also obligate Amazon to have the full constellation of about 3,200 satellites in orbit by July 2029.

The launch contracts to these three untried rockets was the largest such contract ever issued, involving 83 launches and billions of dollars.

To sum up where things stand in terms of the first test launch of each rocket:
» Read more

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Blue Origin BE-4 rocket engine explodes during test

This failure has been kept very quiet, but on June 11, 2023 during a static fire engine test of a Blue Origin BE-4 rocket engine, it exploded 10 seconds into the test.

During a firing on June 30 at a West Texas facility of Jeff Bezos’ space company, a BE-4 engine detonated about 10 seconds into the test, according to several people familiar with the matter. Those people described having seen video of a dramatic explosion that destroyed the engine and heavily damaged the test stand infrastructure. The people spoke to CNBC on the condition of anonymity to discuss nonpublic matters.

The engine that exploded was expected to finish testing in July. It was then scheduled to ship to Blue Origin’s customer United Launch Alliance for use on ULA’s second Vulcan rocket launch, those people said.

The story is based on anonymous sources, but if true it means another serious setback for both ULA’s Vulcan rocket and Blue Origin’s New Glenn rocket. Vulcan has the BE-4 engines it needs to launch its first Vulcan, but it might feel forced to delay that launch until it receives the analysis of this failed test.

It also means that even after more than a decade of development, Blue Origin has still not worked out all the kinks in its BE-4 engine. This inability does not speak well for the company. Are they not testing enough? Are they not questioning their designs enough?

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Blue Origin negotiating with India to use its rockets and capsule for Orbital Reef space station

According to the head of India’s space agency ISRO, he has been in discussions with Blue Origin about using different versions of that nation’s largest rocket (dubbed LVM-3 or GSLV-Mk3 depending on configuration) and its manned capsule (still under development) for eventually ferrying crew and cargo to Blue Origin’s proposed Orbital Reef space station.

Somanath said: “We are exploring … In fact, we’ve already discussed it with Blue Origin and they are very keen to consider this option of LVM-3 becoming a crew capsule mission to service the Orbital Reef. It is a possibility and we are engaging through IN-SPACe (Indian National Space Promotion and Authorisation Centre).”

On the challenge of integrating a docking system that is compatible, he said standard docking systems are in the public domain. “…Whoever can design a docking system that matches with the US design and standard, can be used. However, we will still need to have agreements with agencies to try it out given that there are multiple interfaces — electrical, mechanical and so on. It is not just one document, we will need to work with them to develop it. We will do that.

It appears Somanath has also had discussions with NASA about also providing the same service to ISS.

An Orbital Reef deal however suggests something very disturbing about Blue Origin. The plan had been to use Blue Origin’s New Glenn orbital rocket (also still under development but years behind schedule) to launch crew and cargo capsules to the station. That in fact is supposed to be Blue Origin’s main technical contribution to the station. Why would the company then look to India for such capability, unless it recognizes that there are more problems with New Glenn that it has not revealed?

It is also possible that Jeff Bezos is simply expressing his leftwing globalist agenda with these negotiations. Or it could mean some combination of both. This situation bears watching.

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Viasat drops launch contract with Ariane-6

With SpaceX’s Falcon Heavy having just completed the first of three launches for Viasat’s new geosynchronous constellation of communication satellites, the satellite company has announced that it is cancelling its launch contract with Ariane-6 for the third launch.

The decision means the launch contract is up for grabs for the third ViaSat 3 internet satellite, the last of a three-satellite constellation Viasat is deploying to provide global broadband connectivity from space.

Viasat announced in 2018 it selected SpaceX, United Launch Alliance, and Arianespace to each launch one ViaSat 3 satellite, awarding launch contracts to three industry leaders.

The ULA launch, on its Atlas-5 rocket, is still scheduled for either late this year or early next.

The development of Ariane-6 however is years behind schedule. Furthermore, Arianespace has given priority on Ariane-6 to all of the ESA launches that formerly were going to be launched on Russian Soyuz rockets, further delaying Viasat’s launch.

For Viasat, the delays have become unacceptable, and it has now opened that third launch to bidding. Though both ULA’s Vulcan and Blue Origin’s New Glenn rockets could do the job, neither is operational either. It appears SpaceX’s Falcon Heavy is the only rocket available and is therefore almost certain to get the contract, a conclusion further confirmed by the timing of this announcement, just prior to that successful Falcon Heavy launch.

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NASA awards launch contract to Blue Origin’s unlaunched New Glenn rocket

NASA yesterday awarded Blue Origin the launch contract for its smallsat ESCAPADE Mars orbiter mission, set to launch in late 2024.

ESCAPADE will launch on Blue Origin’s New Glenn rocket from Space Launch Complex-36 at Cape Canaveral Space Force Station in Florida. Launch is targeted for late 2024. Blue Origin is one of 13 companies NASA selected for VADR contracts in 2022. NASA’s Launch Services Program, based at the agency’s Kennedy Space Center in Florida, manages the VADR contracts. As part of VADR, the fixed-price indefinite-delivery/indefinite-quantity contracts have a five-year ordering period with a maximum total value of $300 million across all contracts.

NASA’s VADR program is designed to give contracts to higher risk contractors to help those launch companies develop their rockets. Since New Glenn is years behind schedule and as-yet unlaunched, this contract is an attempt to help change that. Note however that it is fixed price, and does not set a deadline for Blue Origin to launch.

ESCAPADE will actually be two orbiters designed to study the faint artifacts of Mars’ magnetosphere left over from its past.

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