Shadow cast over Japan’s space dreams after Virgin Orbit bankruptcy
- Two Japanese companies emerged as among the top six creditors when UK billionaire Richard Branson’s space company went bankrupt this week
- Japan’s big ambitions for space – Tokyo hopes to put one of its astronauts on the moon in the late 2020s – has suffered other setbacks
The bankruptcy filing by Richard Branson’s Virgin Orbit Holdings has dealt a blow to Japan’s hopes of building a domestic space industry, with plans for a Kyushu-based spaceport designed to attract tourism on hold for lack of funding.
Oita prefecture, home to Japan’s largest number of hot springs, partnered with Virgin Orbit in 2020 to create its first Asian spaceport at Oita Airport using a Boeing 747 for horizontal rocket launches.
Founded by British billionaire Branson, Virgin Orbit had marketed itself as a military and intelligence satellite launch platform for the US and its allies, including Japan, at a time when both Washington and Tokyo see China’s rise as a space power as a concern.
The original aim was to launch small satellites from Oita as early as last year, but that never occurred, in another setback in Japan’s attempt to become a player in the crowded market for commercial satellite launches after two recent rocket launch failures.
Two Japanese companies, ANA Holdings unit All Nippon Airways Trading Co and little-known Japanese satellite development start-up iQPS Inc emerged among the top six creditors when Virgin Orbit filed for Chapter 11 bankruptcy protection on Tuesday.
ANA, owed US$1.65 million, had been a key partner for the Oita spaceport, entering a provisional deal with Virgin Orbit in 2021 for 20 flights of its LauncherOne rocket there. ANA said it was hopeful Virgin Orbit, which has said it is seeking a buyer, would be able to restructure and resume business.