ORAC
28th Jul 2009, 14:35
The Times: Virgin wins $380m backing for space flights (http://business.timesonline.co.uk/tol/business/industry_sectors/transport/article6730427.ece)
Sir Richard Branson has struck a deal with a Middle Eastern investor to buy more than a third of Virgin Galactic, the tycoon’s space travel business which is now worth $1 billion. Aabar Investments, the Abu Dhabi-based fund, has bought a 32 per cent stake in the company, paying $280 million and committing a further $100m to fund satellite launch capability.
Virgin Galactic was set up in 2004 to offer “space tourism” to people willing to pay $200,000 each for the experience. So far, 300 people have signed up for a two and a half hour space flight where they will leave the Earth’s atmosphere for between six and seven minutes of weightlessness.
No date has been given for flights to start but Virgin’s SpaceShipOne has already flown safely to space and back three times. A new spacecraft, SpaceShipTwo, will commence a test flight programme before the end of this year.
Sir Richard said: “We are delighted to partner with Aabar in a strategic deal that is a first for Virgin Galactic. The initiative will leverage the solid financial backing of Aabar and the pioneering technology and strong global relationships of Virgin Galactic.”
The investment is Aabar’s latest attempt to diversify Abu Dhabi’s economy away from oil and lure tourists to the country. Khadem Al Qubaisi, chairman of Aabar, said: “The partnership not only falls in line with Abu Dhabi’s larger plans to inculcate technology, research and science at a grassroots level but also complements its aim to be the international tourism capital of the region.”
Sir Richard Branson has struck a deal with a Middle Eastern investor to buy more than a third of Virgin Galactic, the tycoon’s space travel business which is now worth $1 billion. Aabar Investments, the Abu Dhabi-based fund, has bought a 32 per cent stake in the company, paying $280 million and committing a further $100m to fund satellite launch capability.
Virgin Galactic was set up in 2004 to offer “space tourism” to people willing to pay $200,000 each for the experience. So far, 300 people have signed up for a two and a half hour space flight where they will leave the Earth’s atmosphere for between six and seven minutes of weightlessness.
No date has been given for flights to start but Virgin’s SpaceShipOne has already flown safely to space and back three times. A new spacecraft, SpaceShipTwo, will commence a test flight programme before the end of this year.
Sir Richard said: “We are delighted to partner with Aabar in a strategic deal that is a first for Virgin Galactic. The initiative will leverage the solid financial backing of Aabar and the pioneering technology and strong global relationships of Virgin Galactic.”
The investment is Aabar’s latest attempt to diversify Abu Dhabi’s economy away from oil and lure tourists to the country. Khadem Al Qubaisi, chairman of Aabar, said: “The partnership not only falls in line with Abu Dhabi’s larger plans to inculcate technology, research and science at a grassroots level but also complements its aim to be the international tourism capital of the region.”