Is there a possibility that investors in Virgin Galactic or other entrepreneurial space tourism will see their venture spectacularly crash out of orbit in a financial sense? Space travel does not come cheap, as may be blindingly obvious to many. The billions and trillions of dollars necessary to get something like this off the ground (excuse the pun), are difficult to comprehend. Commercial space exploration bankruptcy risks must be potentially catastrophic. There is only one advantage to it; in space nobody can hear you scream.
Will Richard Branson pull off this all time greatest business coup and get tourists into outer space? The Virgin Galactic website reeks of boldness and bravado; has Branson got bigger balls than Startrek’s Captain James. T. Kirk? Only Spock would know and Leonard Nimoy is dead. I suppose, it is only natural that tourism’s next port of call would be outer space. A space station or a terminus on the moon will need to be built eventually; and all of this infrastructure costs megabucks. Who will invest in Branson’s dream? Will it be mum and dad investors or corporate behemoths? Will punters pay enough in great enough numbers to make the whole thing work?
Commercial space exploration bankruptcy risks are huge and they will not be receding any time soon. The international and domestic airline industry is still one of the most volatile industries, financially speaking, in the world. Airline companies are going bust every week right across the globe. Right now the price of oil and aeroplane fuel is dirt cheap, but that is an anomaly, and things will change. When aeroplane fuel prices go up, airlines, often, go out of business. When you then apply this equation to rocket fuel, which is much more expensive because the distances travelled are so much greater, the likely negative outcomes are almost a certainty.
ACM Group Debt Collection and companies like them will be knocking on Mr Branson’s doors, in a bid to retrieve the investments of their clients. Apollo 13 will no longer be the only near miss in outer space when rockets carrying passengers launch into the cosmic unknown. Black holes may swallow unwary investors before their feet even touch the ground in zero gravity. Groping in the dark for something to hang onto, the market may shudder with the impact of a crashed lunar landing; as Richard Branson boldly goes where no one has gone before.