A Virgin Galactic flight deviated from its intended path. This is a Virgin Galactic aircraft.
Courtesy Virgin GalacticThe Federal Aviation Administration is looking at a Virgin Galactic flight which took Sir Richard Branson to space and investors, naturally, reacted with a bit of nervousness. The FAA, after all, is the aerospace industry’s chief safety regulator and flight safety is always a serious topic.
The situation, however, doesn’t appear all that serious for the stock. It feels more like growing pains for a new industry. Investors, at this point, aren’t used to FAA oversight in space.
Virgin Galactic stock was down 1.3% in premarket trading. Shares have reversed those losses and the stock has now risen more than 4% Thursday. The S&P 500 has gained 0.2%. The Dow Jones Industrial Average is up about 0.3%.
The FAA issue, for now, is being trumped by Galactic’s plans to conduct a crewed research mission, which was announced Thursday. A Virgin Galactic flight, slated for late September or early October, will look at the effects of transitioning from full gravity to microgravity on the human body.
Still, the FAA issue is something new for investors to mull over. “During its July 11, 2021 flight, the Virgin Galactic SpaceShipTwo vehicle deviated from its Air Traffic Control clearance as it returned to Spaceport America,” said an FAA spokesperson in an emailed statement to Barron’s. “The FAA investigation is ongoing.”
That is the flight where Virgin Galactic made history, carrying the first tourists into space, including founder Sir Richard Branson.
The company acknowledged that the flight deviated from its intended path, explaining in an emailed statement that when the spacecraft encountered high altitude winds, which changed the craft’s trajectory, the ship’s pilots and systems responded appropriately.
“The safety of our crew and passengers is Virgin Galactic’s top priority,” added a Virgin Galactic spokesperson. “Although the flight’s ultimate trajectory deviated from our initial plan, it was a controlled and intentional flight path that allowed Unity 22 to successfully reach space and land safely at our Spaceport in New Mexico. At no time were passengers and crew put in any danger as a result of this change in trajectory.”
It’s a lengthy statement, but explains what went on and why the FAA is looking into it. What’s more, Virgin Galactic says it is cooperating with the agency.
Commercial space travel is brand new. There has only been one paying customer on two space tourism flights. Jeff Bezos’ company, Blue Origin, took a paying customer, not associated with the company, into space on its first crewed flight. Some issues are bound to arise. And oversight isn’t a bad thing. Investors —and tourist-astronauts — want to know systems are 100% safe. Otherwise, the space tourism market can’t really develop.
Investors might be worried an investigation could delay the start of regular commercial service. Virgin Galactic says it expects no delays due to this issue, however. Even a small delay wouldn’t matter that much to the stock. Galactic is expected to generate just $14 million in 2022 sales. The big growth is later. By 2030, Jefferies analyst Greg Konrad projects Virgin Galactic will generate $1.7 billion in sales.
Investors can be forgiven if they don’t want to hear about any new issues though. Virgin Galactic stock has been on a wild ride. Shares have fallen 57% from their February 52-week high and have risen 88% from their May 52-week low. Rising interest rates, flight test delays and flight test success all have wreaked havoc on investors’ nerves.
Write to Al Root at allen.root@dowjones.com
"looking" - Google News
September 03, 2021 at 12:35AM
https://ift.tt/3kQb6qK
FAA Is Looking At Branson's Space Flight. Virgin Galactic Shares Rise Anyway. - Barron's
"looking" - Google News
https://ift.tt/2tdCiJt
Shoes Man Tutorial
Pos News Update
Meme Update
Korean Entertainment News
Japan News Update
Bagikan Berita Ini
0 Response to "FAA Is Looking At Branson's Space Flight. Virgin Galactic Shares Rise Anyway. - Barron's"
Post a Comment