Will Virgin Galactic Abandon the Space Tourism Business?

Core Viewpoint - Virgin Galactic is exploring new revenue opportunities by potentially shifting focus from space tourism to carrying research payloads, leveraging its upcoming Delta-class spaceplane to enhance profitability [1][12]. Group 1: Delta-Class Spaceplane Improvements - The Delta-class spaceplane is expected to enter service in 2026, featuring significant enhancements over the Unity spaceplane, including the ability to fly twice a week instead of once a month [2]. - The Delta-class will increase passenger capacity from four to six, representing a 50% improvement, combined with a ninefold increase in launch frequency, which could lead to a potential 1,250% increase in revenues [3]. Group 2: Revenue Potential from Research Payloads - Virgin Galactic's Delta-class spaceplanes can accommodate up to 20 research payload lockers, allowing for a mix of tourists and research missions, potentially increasing revenue by substituting passengers with research projects [5][6]. - Research missions in suborbital space typically cost less than $5 million, suggesting that carrying four research projects could generate$20 million, significantly more than the revenue from a single tourist seat [8][9]. Group 3: Competitive Landscape - Virgin Galactic faces stiff competition in the space tourism sector, with Blue Origin having completed nine flights carrying 47 tourists, compared to Virgin's seven successful flights [10][11]. - The competitive pressure may necessitate a reevaluation of Virgin Galactic's business model, potentially leading to a reduced focus on tourism in favor of more lucrative research missions [12].