US Low-cost expendable launch vehicle developer, Beal Aerospace, has ceased operations, blaming NASA's plan to support the development of competing commercial reusable launch vehicles (RLV) through its Space Launch Initiative (SLI).
Chairman Andrew Beal, who had been funding development of the BA-2C large-capacity launcher privately, says uncertainties "totally beyond our control" have put the business at risk. "The most insurmountable risk is the desire of the US Government and NASA to subsidise competing launch systems," he says.
NASA plans to spend $4.5billion over the next five years on risk-reduction work to pave the way for commercial development of at least two competing second-generation RLVs beginning in 2002. Beal says NASA's plan "will compete directly" and is "the private sector's biggest business risk".
The company claims potential investment sources for low-cost launch system developers have "dried up" as a result of government subsidies for competing launch providers. Kistler Aerospace has halted work on its reusable K-1 while it tries to raise additional funding, and Rotary Rocket has ceased work on its Roton reusable launcher.
Frisco, Texas-based Beal had successfully tested the second- and third-stage rocket motors of the BA-2C and built parts for the first-stage engine, but experienced cost overruns and schedule delays.
There were also problems with potential liability for pre-existing environmental contamination of the only available launch site at Cape Canaveral, Florida. Beal had reached agreement with Guyana to build a launch site there, but had difficulty gaining an export licence.
• NASA has issued a request for proposals for the SLI. Likely bidders include Boeing, Orbital Sciences and Lockheed Martin, which must decide whether to develop its X-33 or select a different option.
Source: Flight International
