Why has Virgin Orbit shut down and what will happen to UK spaceports?
Virgin Orbit’s failed launch in January was the start of the end for the company, which has now sold off its assets and shut down for good. But what does this mean for Richard Branson’s other space firm, Virgin Galactic?
By Matthew Sparkes
24 May 2023
Cosmic Girl and LauncherOne
Virgin Orbit
Virgin Orbit, a space start-up founded by UK entrepreneur Richard Branson, has been shut down. Here’s what you need to know.
Why has Virgin Orbit shut down?
The firm’s troubles began with a failed mission in January, which was due to be the first-ever orbital launch from the UK. Virgin Orbit’s LauncherOne rocket had been carrying nine satellites, including hardware for the US National Reconnaissance Office, but failed to reach orbit.
This setback – despite coming after a string of successful launches – caused its share price to fall, making it impossible for the company to secure more funding, and it started to suffer cash-flow problems. The company had never reached profitability.
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Eventually, it was forced to lay off 85 per cent of its staff – around 675 people – in March. The company limped on with a small team, looking at various options to remain afloat. But this effort ultimately failed and the company has now filed for bankruptcy, sold its assets and shut down for good.
The closure marks a rapid descent for a company that publicly listed on the Nasdaq stock exchange late in 2021 with a valuation of $3.7 billion.
Why did Virgin Orbit’s UK launch fail?
The company’s modified 747-400 jet Cosmic Girl took off from Spaceport Cornwall carrying the LauncherOne rocket under its wing. Once airborne, the rocket dropped away to fire its first stage and successfully accelerated to about 12,900 kilometres per hour. When the second stage kicked in, it reached 28,000 kilometres per hour, but within minutes the launcher “suffered an anomaly” and had to abort.
