Exclusive: Jeff Bezos Plans to Charge at Least $200,000 for Space Rides – Sources

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Blue Origin's New Shepard lifts off during a test in Van Horn
Blue Origin's New Shepard lifts off during a test in Van Horn, Texas, U.S. in an undated photo. Blue Origin/Handout via REUTERS
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By Eric M. Johnson
SEATTLE (Reuters) 

Jeff Bezos’ rocket company plans to charge passengers about $200,000 to $300,000 for its first trips into space next year, two people familiar with its plans told Reuters

Potential customers and the aerospace industry have been eager to learn the cost of a ticket on Blue Origin’s New Shepard space vehicle, to find out if it is affordable and whether the company can generate enough demand to make a profit on space tourism.

 

Blue Origin's New Shepard stands on the launch pad the morning of mission 8 in Van Horn
Blue Origin’s New Shepard stands on the launch pad the morning of mission 8 in Van Horn, Texas, U.S. April 29, 2018. Picture taken April 29, 2018. Blue Origin/Handout via REUTERS

 

Executives at the company, started by Amazon.com Inc founder Bezos in 2000, told a business conference last month they planned test flights with passengers on the New Shepard soon, and to start selling tickets next year.

The company, based about 20 miles (32 km) south of Seattle, has made public the general design of the vehicle – comprising a launch rocket and detachable passenger capsule – but has been tight-lipped on production status and ticket prices.

 

 

Blue Origin representatives did not respond to requests for comment on its programs and pricing strategy. Bezos said in May ticket prices had not yet been decided.

One Blue Origin employee with first-hand knowledge of the pricing plan said the company will start selling tickets in the range of about $200,000 to $300,000. A second employee said tickets would cost a minimum of $200,000. They both spoke on condition of anonymity as the pricing strategy is confidential.

 

The booster rocket of Blue Origin's New Shepard lands on the pad after a test in Van Horn
The booster rocket of Blue Origin’s New Shepard lands on the pad after a test in Van Horn, Texas, U.S. December 12, 2017. Picture taken December 12, 2017. Blue Origin/Handout via REUTERS

 

The New Shepard is designed to autonomously fly six passengers more than 62 miles (100 km) above Earth into suborbital space, high enough to experience a few minutes of weightlessness and see the curvature of the planet before the pressurized capsule returns to earth under parachutes.

The capsule features six observation windows Blue Origin says are nearly three times as tall as those on a Boeing Co 747 jetliner.

 

Jeff Bezos of Amazon speaks at the Bush Centers Forum on Leadership in Dallas
Jeff Bezos, Chairman and CEO of Amazon, speaks at the George W. Bush Presidential Center’s Forum on Leadership in Dallas, Texas, U.S., April 20, 2018. Picture taken on April 20, 2018. REUTERS/Rex Curry

 

Blue Origin has completed eight test flights of the vertical take-off and landing New Shepard from its launch pad in Texas, but none with passengers aboard. Two flights have included a test dummy the company calls “Mannequin Skywalker.”

The company will do the first test in space of its capsule escape system, which propels the crew to safety should the booster explode, “within weeks,” one of the employees said.

 

SMALL STEP FOR A MAN

Blue Origin, whose Latin motto means “step by step, ferociously,” is working towards making civilian space flight an important niche in the global space economy, alongside satellite services and government exploration projects, already worth over $300 billion a year.

 

Amazon and Blue Origin founder Jeff Bezos addresses the media about the New Shepard rocket booster and Crew Capsule mockup at the 33rd Space Symposium in Colorado Springs
Amazon and Blue Origin founder Jeff Bezos addresses the media about the New Shepard rocket booster and Crew Capsule mockup at the 33rd Space Symposium in Colorado Springs, Colorado, United States April 5, 2017. REUTERS/Isaiah J. Downing

 

Bezos, the world’s richest person with a fortune of about $112 billion, has competition from fellow billionaires Richard Branson and Elon Musk, Tesla Inc’s chief executive.

Branson’s Virgin Galactic says it has sold about 650 tickets aboard its own planned space voyages, but has not set out a date for flights to start. The company is charging $250,000 per ticket, in line with Blue Origin’s proposed pricing.

 

Blue Origin's New Shepard capsule descends by parachute after a test in Van Horn
Blue Origin’s New Shepard capsule descends by parachute after a test in Van Horn, Texas, U.S. April 28, 2015. Picture taken April 28, 2015. Blue Origin/Handout via REUTERS

 

SpaceX, founded by Musk in 2002, says its ultimate goal is to enable people to live on other planets.

All three are looking to slash the cost of spaceflight by developing reusable spacecraft, meaning prices for passengers and payloads should drop as launch frequency increases.

 

Ariane Cornell gives tours to the media of Blue Origin's Crew Capsule mockup at the 33rd Space Symposium in Colorado Springs, Colorado
Ariane Cornell (C) gives tours to the media of Blue Origin’s Crew Capsule mockup at the 33rd Space Symposium in Colorado Springs, Colorado, United States April 5, 2017. REUTERS/Isaiah J. Downing

 

While Blue Origin has not disclosed its per-flight operating costs, Teal Group aerospace analyst Marco Caceres estimated each flight could cost the firm about $10 million. With six passengers per trip, that would mean losing millions of dollars per launch, at least initially.

Three sources said Blue’s first passengers are likely to include its own employees, though the company has not selected them yet.

 

(Reporting by Eric M. Johnson in Seattle; Editing by Greg Mitchell and Rosalba O’Brien)

 

Blue Origin conducts a BE-4 engine test in Van Horn
Blue Origin conducts a BE-4 engine test in Van Horn, Texas, U.S. April 5, 2018. Picture taken April 5, 2018. Blue Origin/Handout via REUTERS
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