Completes Funding For Development Of Integrated Human And Payload Space Launch System

By Maxine Scheer

Virgin Galactic (Vg) shared a major milestone Tuesday at AirVenture when Sir Richard Branson signed an agreement to enter into a strategic partnership with Abu Dhabi based Aabar Investments.  The agreement allows for Aabar to secure about a 32% equity stake in Virgin Galactic. The investment of approximately US$280m expedites development of the world’s first private sector integrated human and payload space launch system. To date, Virgin Galactic has been wholly owned and funded by Sir Richard Branson’s Virgin Group.

The deal was signed Tuesday in the presence of thousands attendees at the EAA AirVenture air show in Oshkosh by Sir Richard Branson and Mohamed Badawy Al-Husseiny, CEO of Aabar.  The ceremony took place alongside Virgin Galactic’s new 100% composite carrier aircraft space launch vehicle/mothership, WhiteKnightTwo (VMS Eve), a.k.a. WK2, which later made its public demonstration flying debut in Oshkosh.  

Sir Richard Branson

An additional $110 million has also been committed by Aabar to support Vg’s development of a cost effective and environmentally sensitive small satellite launch capability which will use WK2 as a first stage platform. “It is our goal to significantly reduce the cost of satellite launch capabilities, which allows for expanding satellite based technologies and applications,” said Branson.

Aabar described his plans to build spaceport facilities in Abu Dhabi. Aabar intends to secure exclusive regional rights to host Virgin Galactic tourism and scientific research space flights, noted to be subject to regulatory approvals including those to be secured by the U.S. Government.

Also present at the signing ceremony was long time EAA member and world renowned aeronautical engineer Burt Rutan, designer of SpaceShipOne, WK2 and founder of Scaled Composites, now owned by Northrop Grumman. 

Burt Rutan

An estimated $40 million has been raised by Vg thus far from deposits made by over 300 passengers as Virgin Galactic Astronauts for passenger space flights where 2 pilots and 6 passengers will be carried on a two to two and a half hour flight. Branson anticipates the schedule for the start of construction for a second mothership to begin at Mojave, CA based Scaled Composites the early part of 2010.

As WK2 was being towed off AeroShell Square for its public demonstration flight, Al-Husseiny spoke to reporters about Aabar's investments. Al-Husseiny sees Vg as a strong commercial venture as are other investments being made by Aabar in other sectors including energy, infrastructure, real estate, automotive and financial services companies. He gave a number of examples, which included a recent $2.7 billion investment in Daimler AG.  Aabar’s largest shareholder is the International Petroleum Investment Company, which in turn is wholly owned by the Government of the Emirate of Abu Dhabi, holder of 8 percent of the world’s oil reserves and richest of the seven states that make up the United Arab Emirates.  

Virgin Galactic was launched by Sir Richard Branson’s Virgin Group in 2004 with the objective of developing commercial space vehicles which would transform the safety, cost and environmental impact associated with access to space.  Branson’s venture seems well on its way to achieving its goals and WK2’s demonstration flight at AirVenture generated much excitement at Oshkosh.

FMI: www.virgingalactic.com