The collapse of British billionaire Sir Richard Branson’s satellite firm Virgin Orbit this week has thrown the future of the UK’s space industry into jeopardy.
On Tuesday, the firm announced it was permanently ceasing operations, months after a major mission failure.
Melissa Quinn, chief executive of Cornwall Spaceport, where the project was based, stepped down last week, leading to concerns the sector is now facing an uncertain future.
But Britain’s leading voices in the space industry have told The National they are confident the sector will continue to “thrive”, with new advances emerging.
David Jones, a former Wales minister, said while it was unfortunate that Virgin Orbit had gone bankrupt, it was not a reflection on the burgeoning British space industry.
“There are always going to be setbacks when it comes to the very advanced technology needed to enter space,” he said.
“But space development is advancing significantly in Britain, particularly with a Spaceport in Cornwall and another in Scotland.
“The UK has got a very important satellite industry and it’s got a major space industry that is producing great advances, particularly in satellites.”
UK's new rockets set to benefit in active commercial market
In January, Virgin Orbit, based in California, sought to complete the first satellite launch from British soil, with hopes the mission would be a major stepping stone for space exploration from the UK.
However, the firm’s LauncherOne rocket failed to reach orbit and saw its payload of US and UK intelligence satellites plunge into the ocean.
Last month, Sir Richard filed for bankruptcy after failing to secure rescue funding.
Keith Ryden, head of Surrey Space Centre and professor of space engineering at the University of Surrey, said that, despite the setback, the industry has an optimistic future.
“The apparent collapse of Virgin Orbit is hard for its employees and disappointing in terms of the UK’s horizonal launch capacity,” he said.
“However, there are still numerous launch options worldwide for the low Earth orbits Virgin Orbit were going to service and it’s clear that new rockets, including the UK-based vertical launchers now on the starting blocks, will enter a very active commercial market.
“In our part of the UK, where the Space South Central regional cluster is uniting academia and businesses, it’s very evident that our space industry is thriving.
“New technologies are emerging, developed by the skilled experts living in our region, and we’re extremely optimistic about the future.”
Experts warn the space industry is 'fragile'
Virgin Orbit was founded by Sir Richard in 2017 as an offshoot of his space-tourism venture Virgin Galactic Holdings, with the aim of securing a share of the market for launching small satellites into space.
Its goal was to provide swift and adaptable space launch services for the growing small satellites market by air-launching mini rockets from a modified Boeing 747-400 aircraft.
The LauncherOne rockets were launched from modified Virgin passenger planes, allowing the company to operate more flexibly than by using fixed launch sites.
Some fear the setback will lead investors to look to big US firms, such as SpaceX, instead.
Atma Prakash, senior lecturer in aerospace engineering in Teesside University’s School of Computing, Engineering and Digital Technologies, has warned that the industry is “fragile”.
“Space is not easy. When people give examples for simple tasks, they all say, this is not 'rocket science',” he said.
“But space is anything but simple. Given the complexities involved in planning any space missions, there are many risks associated to it which could result in delay or, worst-case scenario, failure of the mission.
“In the case of Virgin Orbit, that is exactly what happened. The failure launch from Spaceport Cornwall and the associated debts resulted in the downfall of the company.”
He added that Virgin Orbit was supposed to be the UK market's “torch bearer in the space economy”, particularly for Cornwall, with the promise of job opportunities and local development.
“But, due to the bankruptcy, the company has been forced to lay off hundreds of jobs,” Dr Prakash continued. “This shows there are always risks in the space sector and how fragile the space market is – even if the company is as big as Virgin.
“As this was the only public traded company in the space market, investors may now be more interested to invest in US rather than UK.
“Even though this is a great loss for the UK economy, it will not stop the growth of the space industry due to the big players such as SpaceX and Blue Origin already there to support and provide the space launches.”
Malcolm Macdonald, director of the Applied Space Technology Laboratory at the University of Strathclyde, said the collapse of Virgin Orbit should act as a warning to others.
“Directly, this has almost zero impact on the UK’s space sector. Despite the significant funding from UK government it seems that Virgin Orbit had no, or very few, UK employees,” he told The National.
“Indirectly, it is clearly bad news for Cornwall Spaceport, and the broader Cornwall space cluster, as Virgin Orbit was their only operator and it looks like they haven’t managed to yet establish a suitably robust business at that spaceport.
“This should be a cautionary tale for other single operator spaceports, of which the UK has a few.”
On Tuesday, following the collapse Virgin Orbit said its legacy would endure.
“Virgin Orbit’s legacy in the space industry will forever be remembered,” it said in a statement.
“Its groundbreaking technologies, relentless pursuit of excellence and unwavering commitment to advancing the frontiers of air launch have left an indelible mark on the industry.”
UK government still committed to supporting space sector
Even given the setback with Virgin Orbit, the UK government said it was still focused “on supporting multiple projects designed to make the UK the leading provider of commercial small satellite launch in Europe by 2030”.
“The government is committed to supporting this high-growth sector, boosting the UK’s reputation as a growing space power, and inspiring the next generation of professionals,” Secretary of State for Science, Innovation and Technology Michelle Donelan said last month.
Aside from Spaceport Cornwall, where Virgin Orbit's UK operations were based, there is also “significant activity” under way in Scotland, with two new spaceports at SaxaVord and Sutherland expecting satellite launches in 2024.
Former Wales minister Mr Jones has praised Sir Richard for making attempts to commercialise space and predicted that despite the setback, the UK still has an important place in the space industry.
“You have to give credit to him for that and it's just very sad that his endeavour has failed,” said the senior Tory backbencher.
“But that's not a comment on the UK space industry as a whole. We've got a very important space industry and it will get more important as time goes on.”
BMW M5 specs
Engine: 4.4-litre twin-turbo V-8 petrol enging with additional electric motor
Power: 727hp
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Skoda Superb Specs
Engine: 2-litre TSI petrol
Power: 190hp
Torque: 320Nm
Price: From Dh147,000
Available: Now
The specs: 2017 Porsche 718 Cayman
Price, base / as tested Dh222,500 / Dh296,870
Engine 2.0L, flat four-cylinder
Transmission Seven-speed PDK
Power 300hp @ 6,500rpm
Torque 380hp @ 1,950rpm
Fuel economy, combined 6.9L / 100km
How to get there
Emirates (www.emirates.com) flies directly to Hanoi, Vietnam, with fares starting from around Dh2,725 return, while Etihad (www.etihad.com) fares cost about Dh2,213 return with a stop. Chuong is 25 kilometres south of Hanoi.
Company profile
Company: Eighty6
Date started: October 2021
Founders: Abdul Kader Saadi and Anwar Nusseibeh
Based: Dubai, UAE
Sector: Hospitality
Size: 25 employees
Funding stage: Pre-series A
Investment: $1 million
Investors: Seed funding, angel investors
Brief scores:
Toss: Rajputs, elected to field first
Sindhis 94-6 (10 ov)
Watson 42; Munaf 3-20
Rajputs 96-0 (4 ov)
Shahzad 74 not out
Lexus LX700h specs
Engine: 3.4-litre twin-turbo V6 plus supplementary electric motor
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Transmission: 10-speed auto
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Specs
Engine: Dual-motor all-wheel-drive electric
Range: Up to 610km
Power: 905hp
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Price: From Dh439,000
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Country-size land deals
US interest in purchasing territory is not as outlandish as it sounds. Here's a look at some big land transactions between nations:
Louisiana Purchase
If Donald Trump is one who aims to broker "a deal of the century", then this was the "deal of the 19th Century". In 1803, the US nearly doubled in size when it bought 2,140,000 square kilometres from France for $15 million.
Florida Purchase Treaty
The US courted Spain for Florida for years. Spain eventually realised its burden in holding on to the territory and in 1819 effectively ceded it to America in a wider border treaty.
Alaska purchase
America's spending spree continued in 1867 when it acquired 1,518,800 km2 of Alaskan land from Russia for $7.2m. Critics panned the government for buying "useless land".
The Philippines
At the end of the Spanish-American War, a provision in the 1898 Treaty of Paris saw Spain surrender the Philippines for a payment of $20 million.
US Virgin Islands
It's not like a US president has never reached a deal with Denmark before. In 1917 the US purchased the Danish West Indies for $25m and renamed them the US Virgin Islands.
Gwadar
The most recent sovereign land purchase was in 1958 when Pakistan bought the southwestern port of Gwadar from Oman for 5.5bn Pakistan rupees.
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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.”
Avatar: Fire and Ash
Director: James Cameron
Starring: Sam Worthington, Sigourney Weaver, Zoe Saldana
Rating: 4.5/5
UAE Team Emirates
Valerio Conti (ITA)
Alessandro Covi (ITA)
Joe Dombrowski (USA)
Davide Formolo (ITA)
Fernando Gaviria (COL)
Sebastian Molano (COL)
Maximiliano Richeze (ARG)
Diego Ulissi (ITAS)
Ferrari
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Quick pearls of wisdom
Focus on gratitude: And do so deeply, he says. “Think of one to three things a day that you’re grateful for. It needs to be specific, too, don’t just say ‘air.’ Really think about it. If you’re grateful for, say, what your parents have done for you, that will motivate you to do more for the world.”
Know how to fight: Shetty married his wife, Radhi, three years ago (he met her in a meditation class before he went off and became a monk). He says they’ve had to learn to respect each other’s “fighting styles” – he’s a talk it-out-immediately person, while she needs space to think. “When you’re having an argument, remember, it’s not you against each other. It’s both of you against the problem. When you win, they lose. If you’re on a team you have to win together.”
Who's who in Yemen conflict
Houthis: Iran-backed rebels who occupy Sanaa and run unrecognised government
Yemeni government: Exiled government in Aden led by eight-member Presidential Leadership Council
Southern Transitional Council: Faction in Yemeni government that seeks autonomy for the south
Habrish 'rebels': Tribal-backed forces feuding with STC over control of oil in government territory
The years Ramadan fell in May
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Power: 194hp at 5,600rpm
Torque: 275Nm from 2,000-4,000rpm
Transmission: 6-speed auto
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Killing of Qassem Suleimani
Fighter profiles
Gabrieli Pessanha (Brazil)
Reigning Abu Dhabi World Pro champion in the 95kg division, virtually unbeatable in her weight class. Known for her pressure game but also dangerous with her back on the mat.
Nathiely de Jesus, 23, (Brazil)
Two-time World Pro champion renowned for her aggressive game. She is tall and most feared by her opponents for both her triangles and arm-bar attacks.
Thamara Ferreira, 24, (Brazil)
Since her brown belt days, Ferreira has been dominating the 70kg, in both the World Pro and the Grand Slams. With a very aggressive game.
Samantha Cook, 32, (Britain)
One of the biggest talents coming out of Europe in recent times. She is known for a highly technical game and bringing her A game to the table as always.
Kendall Reusing, 22, (USA)
Another young gun ready to explode in the big leagues. The Californian resident is a powerhouse in the -95kg division. Her duels with Pessanha have been highlights in the Grand Slams.
Martina Gramenius, 32, (Sweden)
Already a two-time Grand Slam champion in the current season. Gramenius won golds in the 70kg, in both in Moscow and Tokyo, to earn a spot in the inaugural Queen of Mats.
The specs: 2018 Nissan Altima
Price, base / as tested: Dh78,000 / Dh97,650
Engine: 2.5-litre in-line four-cylinder
Power: 182hp @ 6,000rpm
Torque: 244Nm @ 4,000rpm
Transmission: Continuously variable tranmission
Fuel consumption, combined: 7.6L / 100km
Tips to avoid getting scammed
1) Beware of cheques presented late on Thursday
2) Visit an RTA centre to change registration only after receiving payment
3) Be aware of people asking to test drive the car alone
4) Try not to close the sale at night
5) Don't be rushed into a sale
6) Call 901 if you see any suspicious behaviour
The specs: 2018 Mercedes-Benz E 300 Cabriolet
Price, base / as tested: Dh275,250 / Dh328,465
Engine: 2.0-litre four-cylinder
Power: 245hp @ 5,500rpm
Torque: 370Nm @ 1,300rpm
Transmission: Nine-speed automatic
Fuel consumption, combined: 7.0L / 100km
Mohammed bin Zayed Majlis
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