Billionaire businessman Jeff Bezos shakes hands with Wally Funk, who became the oldest person in space with other crew mates Oliver Daemen (left) and Mark Bezos (second from left). Reuters
Billionaire businessman Jeff Bezos shakes hands with Wally Funk, who became the oldest person in space with other crew mates Oliver Daemen (left) and Mark Bezos (second from left). Reuters
Billionaire businessman Jeff Bezos shakes hands with Wally Funk, who became the oldest person in space with other crew mates Oliver Daemen (left) and Mark Bezos (second from left). Reuters
Billionaire businessman Jeff Bezos shakes hands with Wally Funk, who became the oldest person in space with other crew mates Oliver Daemen (left) and Mark Bezos (second from left). Reuters

Jeff Bezos' Blue Origin files lawsuit against Nasa over Moon landing contract


Alkesh Sharma
  • English
  • Arabic

Blue Origin, the space company owned by billionaire Jeff Bezos, filed a lawsuit in the US federal court to challenge the lucrative Nasa Moon landing contract awarded solely to Elon Musk’s SpaceX.

The lawsuit comes weeks after the US Government Accountability Office (GAO) rejected Blue Origin’s protest of Nasa’s decision to award the $2.9 billion contract to rival private space company SpaceX to exclusively develop the human landing system.

The lawsuit is “an attempt to remedy the flaws in the acquisition process found in Nasa’s human landing system”, Blue Origin said in a statement.

“We firmly believe that the issues identified in this procurement and its outcomes must be addressed to restore fairness, create competition and ensure a safe return to the Moon for America,” it added.

The US plans to return to the Moon by 2024 under the Artemis programme. It aims to use the experience and lessons learnt during the process to prepare for a full-fledged crewed Mars mission in the 2030s.

Last month, Mr Bezos also wrote an open letter to Nasa offering a $2bn discount to allow his company to build a Moon lander.

It would “bridge the funding shortfall” that led Nasa to select only one company, Mr Bezos said in the letter, adding that the selection of more companies will promote competition.

“This offer is not a deferral, but is an outright permanent waiver,” Mr Bezos said at the time.

“We stand ready to help Nasa moderate its technical risks and solve its budgetary constraints and put the Artemis Programme back on a more competitive, credible and sustainable path.”

In last month’s protest filed to the GAO, Blue Origin argued that Nasa was required to make multiple awards and it “unreasonably” evaluated the proposals of other contenders.

“SpaceX submitted the lowest-priced proposal with the highest rating … the offers submitted by Blue Origin and Dynetics [the third contender for the Moon landing contract] were significantly higher in price,” Nasa said in its justification to award the contract solely to SpaceX.

“Nasa also concluded that the agency lacked the necessary funding to make more than one award.”

Nasa’s human landing system is one of the most important projects of the agency in recent times. Blue Origin had been trying to get the contract for some years.

Last year, Nasa awarded a $579 million contract to a Blue Origin-led team in the initial phase of the project. At the same time, Alabama-based defence contractor Dynetics and SpaceX were awarded contracts worth $253m and $135m, respectively.

  • Blue Moon, a lunar landing vehicle, is seen after being announced by Amazon CEO Jeff Bezos during a Blue Origin event in Washington on May 9, 2019. AFP
    Blue Moon, a lunar landing vehicle, is seen after being announced by Amazon CEO Jeff Bezos during a Blue Origin event in Washington on May 9, 2019. AFP
  • Caroline Kennedy and Jeff Bezos, founder of Amazon and Blue Origin, have a fireside chat during the JFK Space Summit, celebrating the 50th anniversary of the moon landing, at the John F. Kennedy Library in Boston, Massachusetts, US, on June 19, 2019. Reuters
    Caroline Kennedy and Jeff Bezos, founder of Amazon and Blue Origin, have a fireside chat during the JFK Space Summit, celebrating the 50th anniversary of the moon landing, at the John F. Kennedy Library in Boston, Massachusetts, US, on June 19, 2019. Reuters
  • This undated illustration provided by Blue Origin shows the capsule that the company aims to take tourists into space. Blue Origin via AP
    This undated illustration provided by Blue Origin shows the capsule that the company aims to take tourists into space. Blue Origin via AP
  • Jeff Bezos, founder of Amazon. Getty
    Jeff Bezos, founder of Amazon. Getty
  • Amazon and Blue Origin founder Jeff Bezos addresses the media about the New Shepard rocket booster and Crew Capsule mockup at the 33rd Space Symposium in Colorado Springs, Colorado, United States on April 5, 2017. Reuters
    Amazon and Blue Origin founder Jeff Bezos addresses the media about the New Shepard rocket booster and Crew Capsule mockup at the 33rd Space Symposium in Colorado Springs, Colorado, United States on April 5, 2017. Reuters
  • Jeff Bezos, founder of Amazon. Reuters
    Jeff Bezos, founder of Amazon. Reuters
  • Jeff Bezos, founder of Blue Origin, at the New Shepard rocket's West Texas launch facility before its maiden flight. Blue Origin / AFP
    Jeff Bezos, founder of Blue Origin, at the New Shepard rocket's West Texas launch facility before its maiden flight. Blue Origin / AFP
  • Storm clouds and a rainbow appear over Jeff Bezos' Blue Origin Aerospace Manufacturer building as Hurricane Dorian approaches Florida, on August 31, 2019 in Cape Canaveral, Florida. Getty Images / AFP
    Storm clouds and a rainbow appear over Jeff Bezos' Blue Origin Aerospace Manufacturer building as Hurricane Dorian approaches Florida, on August 31, 2019 in Cape Canaveral, Florida. Getty Images / AFP
  • A combination of pictures shows the 10th test flight launch of Blue Origin's New Shepard rocket on January 23, 2019. Blue Origin AFP
    A combination of pictures shows the 10th test flight launch of Blue Origin's New Shepard rocket on January 23, 2019. Blue Origin AFP
  • Jeff Bezos, chief executive officer of Amazon and founder of Blue Origin, speaks at the unveiling of the Blue Origin New Shepard system during the Space Symposium in Colorado Springs, Colorado on April 5, 2017. Bloomberg
    Jeff Bezos, chief executive officer of Amazon and founder of Blue Origin, speaks at the unveiling of the Blue Origin New Shepard system during the Space Symposium in Colorado Springs, Colorado on April 5, 2017. Bloomberg

However, in April this year, Nasa selected only SpaceX to develop the first spacecraft for human landing on the moon since the last Apollo mission in 1972.

The development of Mr Bezos’ Blue Origin lags Mr Musk’s SpaceX on a number of fronts. It is also running behind its own deadlines and launch schedules.

Blue Origin's rocket, which has a reusable booster, was expected to debut last year but it is not expected to fly until the end of next year. SpaceX’s orbital rockets, particularly the Falcon 9, currently dominate the industry. SpaceX, which runs Starlink, the biggest satellite network in the world, is also developing its own reusable rocket Starship.

Meanwhile, SpaceX has been delivering cargo to the International Space Station since 2012, SpaceX said on its website. In 2020, it began transporting people to the ISS under Nasa's Commercial Crew Programme, it added.

UEFA CHAMPIONS LEAGUE FIXTURES

All kick-off times 10.45pm UAE ( 4 GMT) unless stated

Tuesday
Sevilla v Maribor
Spartak Moscow v Liverpool
Manchester City v Shakhtar Donetsk
Napoli v Feyenoord
Besiktas v RB Leipzig
Monaco v Porto
Apoel Nicosia v Tottenham Hotspur
Borussia Dortmund v Real Madrid

Wednesday
Basel v Benfica
CSKA Moscow Manchester United
Paris Saint-Germain v Bayern Munich
Anderlecht v Celtic
Qarabag v Roma (8pm)
Atletico Madrid v Chelsea
Juventus v Olympiakos
Sporting Lisbon v Barcelona

Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.

Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.

Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.

Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.

“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.

Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.

From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.

Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.

BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.

Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.

Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.

“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.

Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.

“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.

“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”

The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”

Basquiat in Abu Dhabi

One of Basquiat’s paintings, the vibrant Cabra (1981–82), now hangs in Louvre Abu Dhabi temporarily, on loan from the Guggenheim Abu Dhabi. 

The latter museum is not open physically, but has assembled a collection and puts together a series of events called Talking Art, such as this discussion, moderated by writer Chaedria LaBouvier. 

It's something of a Basquiat season in Abu Dhabi at the moment. Last week, The Radiant Child, a documentary on Basquiat was shown at Manarat Al Saadiyat, and tonight (April 18) the Guggenheim Abu Dhabi is throwing the re-creation of a party tonight, of the legendary Canal Zone party thrown in 1979, which epitomised the collaborative scene of the time. It was at Canal Zone that Basquiat met prominent members of the art world and moved from unknown graffiti artist into someone in the spotlight.  

“We’ve invited local resident arists, we’ll have spray cans at the ready,” says curator Maisa Al Qassemi of the Guggenheim Abu Dhabi. 

Guggenheim Abu Dhabi's Canal Zone Remix is at Manarat Al Saadiyat, Thursday April 18, from 8pm. Free entry to all. Basquiat's Cabra is on view at Louvre Abu Dhabi until October

Groom and Two Brides

Director: Elie Semaan

Starring: Abdullah Boushehri, Laila Abdallah, Lulwa Almulla

Rating: 3/5

Updated: August 17, 2021, 2:14 PM