THE VIRGINIAN-PILOT
Copyright (c) 1996, Landmark Communications, Inc.
DATE: Friday, August 30, 1996 TAG: 9608300704
SECTION: BUSINESS PAGE: D1 EDITION: FINAL
SOURCE: BY KAREN JOLLY DAVIS, STAFF WRITER
DATELINE: WALLOPS ISLAND LENGTH: 76 lines
Before Virginia risks big money on an untried commercial spaceport on the Eastern Shore, supporters need to answer this question:
Can the Virginia Spaceflight Center launch enough rockets to make money, given the realities of the aerospace market?
So far, research seems to indicate that it can.
On Wednesday, the Virginia Commercial Space Flight Authority received and approved a business plan for the spaceport. The plan, developed by The Bonaventure Group of Portsmouth, says a spaceport on Wallops Island could launch five to seven commercial orbital flights per year in the existing market. It only needs four to break even.
``The bottom line is, there's room for us,'' said Billie Reed, executive director of the space flight authority.
Spaceport Florida is Virginia's only competitor, the business plan says. It's the only other site in the country that launches over the Atlantic for equatorial and ``inclined'' orbits. Industry experts predict a need for 14 to 18 launches per year for that type of orbit.
``Florida can't do 14 to 18 launches per year on one pad,'' said Reed. The business plan predicts that the Virginia Spaceflight Center could attract 50 percent of that market.
If the spaceport launches six rockets a year, at a cost to the customer of $750,000 per orbital launch, it would net $900,000 each year, Reed said. At the end of 10 years, he said, all the spaceport's initial debts would be paid, investors will have a 15 percent return, and there would be a $5 million profit.
But it's essential that Virginia and Maryland provide legislative support, and front some money to help build the infrastructure, Reed said.
``There are no private spaceports,'' he said. ``Howard Hughes is dead. And other than him, I don't know who would take that risk.''
Reed said states are traditionally involved in building infrastructure like roads, bridges and airports. But the spaceport needs to stand on its own.
``The state is not going to bankroll an operation that is not self-supporting,'' Reed said.
At Wednesday's meeting, members of the authority criticized the business plan for not including revenues that could be earned through suborbital launches, as well as education and research. They voted to amend the plan to reflect that potential income.
It cost $18,000 and took about two months to create the business plan, Reed said. Once it is amended, he will send it to NASA headquarters in Washington and complete agreements to use NASA property, equipment and personnel.
Reed, and others with the Spaceflight Center, will use the business plan to approach investors and customers.
At Wednesday's meeting, the authority voted to spend about $50,000 for marketing the spaceport. It also empowered Reed to spend money on an environmental assessment and preliminary design for a new, bigger launch pad. ILLUSTRATION: AN IDEA THAT WOULD FLY
Conclusions of a business group's plan for the proposed Virginia
Spaceflight Center on Wallops Island:
DEMAND: The spaceport could launch five to seven commercial
orbital flights per year in the existing market. It only needs four
to break even.
PROFITS: If the spaceport launches six rockets a year, it would
net $900,000 each year.
TIMETABLE: After 10 years, the spaceport's initial debts would be
paid, investors would have a 15 percent return, and there would be a
$5 million profit.
FUNDING: Public funds are considered necessary. It's essential
that Virginia and Maryland provide legislative support, as well as
some money to help build the infrastructure.
WHAT'S NEXT: The business plan will be used to approach investors
and customers. by CNB