Highlights
Case study
Space Exploration Technologies (SpaceX) was founded in 2002 by entrepreneur Elon Musk. Musk’s vision was to revolutionise the aerospace industry and make space travel affordable and sustainable.
As a private company, SpaceX does not have the same bureaucratic restrictions as NASA.This has enabled Musk to develop rockets with surprising speed. SpaceX is able to create parts and equipment, secure launchpad sites, and hire employees from competing companies and universities much faster than NASA. As a result, NASA is increasingly relying on private companies for services.
SpaceX currently spends around $90million to launch a rocket to the international space station (ISS). This compares favourably to the ~$380 million charged by rivals. The reduced cost is due the strong emphasis that SpaceX have on in-house manufacturing and their focus on the research and development of reusable parts. For example, instead of spending $50,000 to $100,000 to purchase radio equipment and other communications gear, SpaceX was able to develop gear in-house for $5,000. One of the biggest cost savings for SpaceX comes from the reusable rockets that they have developed. SpaceX rockets can be re-used up to 10 times. After the recent successful rocket launch to the ISS, Elon’s vision is nearly a reality. Musk
has boldly decided to start taking bookings for a new spacecraft that will enable passengers to accompany astronauts to the ISS. Once the incoming astronauts have landed on the ISS, outgoing astronauts will return on the spacecraft and return the passengers to earth. Musk is expecting to be able to transport up to four passengers per flight. There will be minimum fitness requirements and a maximum passenger and luggage weight. Flights are likely to begin in 2022 but no flights will have fixed dates. At this stage, passengers will have to be ready and waiting for when it is suitable to launch. The system will take payments for the flights and set the conditions out clearly.
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