Virgin Galactic slashes payments to Spaceport (and more)

Virgin Galactic hasn’t launched from the taxpayer-funded Spaceport on June 8, 2024 (more than 2 years ago). The latest statement from the company claims they’ll launch again in February 2027. Originally, the Company had claimed they’d launch by fall of 2026. The Company is also bleeding cash and its reserves are plummeting.

But, Virgin Galactic HAS managed to save money (at the expense of New Mexico taxpayers, of course) by slashing the monthly user fees it pays to the spaceport by 73.5%, from $188,888 to $50,000. That’s an annual loss of $1.6 million. Despite the reduction in revenue, Spaceport America must still maintain the same day-to-day operational support and testing services for Virgin Galactic. According to KRQE 13, the Spaceport will be coming to the Legislature in 2027 for additional funding to bridge the gap.  

While the facility cost $225 million to build it has continued to require infusions of cash almost every year. Earlier in the year, for example, the Legislature’s allocated $4 million in capital outlay funds for infrastructural improvements at the facility.

Will Virgin Galactic launch in February of next year? That’s anybody’s guess. Should New Mexicans and policymakers be more careful before allocating taxpayer dollars to big capital projects based on big promises? Of course.