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Margins — Chris Kemp unpluggedAstras CEO dishes on the space companys struggles “Im a public company, I cant make this shit up.”

Stephen Clark – Aug 21, 2023 9:31 pm UTC Enlarge / Chris Kemp, founder and CEO of Astra.David Paul Morris/Bloomberg via Getty Images reader comments 28 with

Chris Kemp is a fighter. That’s the price of admission if you want to compete in the brutal small launch industry. He is the co-founder, chairman and CEO of Astra, founded in 2016 with a goal of essentially commoditizing small satellite launch services, or at least getting a lot closer to that than anyone else.

But there are a lot pressure points for Astra in 2023. The company abandoned its first orbital rocket design, called Rocket 3, last year after a string of failures. With higher interest rates, raising money in 2023 isn’t as easy as it was a few years ago. And calling Astra’s competition stiff is definitely an understatement.

Kemp argues that Astra finds itself in a different position than, say, Virgin Orbit, a small satellite launch company that went bankrupt earlier this year. Astra has diversified, and can lean on a separate source of revenue in a promising business building electric thrusters for small satellites. This business, which Astra calls spacecraft engines, was made possible by the acquisition of a company called Apollo Fusion in 2021.

SpaceX is achieving great success in aggregating large numbers of small satellites onto its Falcon 9 rocket, significantly bigger than vehicles like Rocket Lab’s Electron launcher or anything on Astra’s drawing board.

That has pushed Rocket Lab and Relativity Space to prioritize developing larger rocketsthe Neutron and Terran Rthat are partially reusable to better compete with SpaceX’s Falcon 9. Astra, on the other hand, is still betting what an inexpensive, mass-produced, expendable small rocket can be successful in winning business to haul lightweight satellites into orbit, either one at a time, or in small groups. The argument there is that a small rocket can deliver payloads to optimal orbits, instead of releasing them at an undesirable altitude or inclination.

Whether or not that’s the right business strategy, the predicament that Astra currently finds itself in is that the first iteration of its small launch vehicle, Rocket 3, failed to become a reliable option for customers. In seven orbital launch attempts, Rocket 3 failed five times. To be fair, Kemp points out that some of these launches were test flights without functioning satellites on board. Astra moved on from Rocket 3 after a launch failure in June 2022 destroyed two NASA hurricane research satellites. Advertisement

Ars published a story last week about the headwinds facing Astra, which recently announced layoffs of about 25 percent of its workforce. It is now staffed at between 200 and 250 employeesquite a lean operation compared to peers in the small launch industry. Around 50 of those employees were shifted from working on Astra’s new rocket, called Rocket 4, to devote their time to satellite propulsion systems.

Astra has a big challenge ahead, but it’s obvious Kemp isn’t ready to throw in the towel. Hespoke with Ars on Friday from Astra’s rocket factory in Alameda, California. Here are some highlights. Is it fair to say Astra is in a fight for survival?

Chris Kemp: “It is a little unfair … We have a very profitable source of revenue, which is our spacecraft engine. Weve sold hundreds of them at great margins.

“This is our rocket facility. This is a quarter of a million square feet. You can see the rocket production line behind me. There are people down there making rocket stuff. Its real. Thats a Rocket 4 stage on the production line … I could characterize the launch business at Astra as fighting for its survival, but I wouldnt characterize Astra as fighting for its survival. Astra has always had the option of just stopping the launch business. The reason why we havent is we have already largely completed the development and the capex [capital expenditures] required to manufacture the vehicles two years ago, when we started the Rocket 4 program, hundreds of millions of dollars ago, before we had engines and stages and a giant $100 million production line. Weve now done so much work toward this program that the next step is just testing things and going out and doing some test flights. Then the Space Force has some flights. We have some NASA flights. We have a backlog of launch contracts. In the case of the Space Force contract, thats an $11.5 million contract, millions of dollars of cash comes in, in advance of launch, because of the milestones were achieving.

“So I look at it and I say, well, if I were not to do launch, we simply wouldnt be able to bill the Space Force for these milestones. So what it does it cost me to continue running launch versus what would it cost me to shut down launch? Its kind of a wash, honestly, if we continue to get contracts and government support for launch, and the government has said that they really want to support it. I mean, there are three (private or venture-backed) companies right now operating that have put satellites in orbitSpaceX, Rocket Lab, and Astrafull stop. Fireflys stuff deorbited in a few days. ABL blew up everything, Relativity failed and scrubbed the program and wont fly again until 2027 [Relativity says Terran R’s first flight is scheduled for 2026]. Advertisement Enlarge / Astra revealed a prototype of its Rocket 4 launch vehicle in May.Astra

“The way I look at it is there are three launch companies that can point to the sky and say weve put satellites in orbit, and were one of them. And were the only one of them that has already invested hundreds of millions of dollars in a production line. Were the only one of them that has a mobile system that we have already demonstrated. We can go to Cape Canaveral and set up in under a week. We have some Space Force people here right now walking the production line … We have folks that view what Astra has built and demonstrated, and they say, ‘This has value to us, you guys have a mission control with two people in it, you guys have a system that last year deployed at Cape Canaveral in six days.’

“Its only going to get better from here with a 600-kilogram class vehicle (Rocket 4’s planned payload capacity to low-Earth orbit), and I think that puts Astra in a position where just killing launch, given we have customers and cash and revenue coming into that business, isnt an obvious choice for us. Its a risky choice for us.

“But weve got this public company now with stock trading at 25 cents per share. That makes it nearly impossible for us to raise any meaningful amount of capital in public markets. So that basically means that we need to take the revenue coming in, the cash coming in from our spacecraft engines business, and whatever cash comes in from our launch business, and kind of make it work.” Page: 1 2 3 Next → reader comments 28 with Stephen Clark Stephen Clark is a space reporter at Ars Technica, covering private space companies and the worlds space agencies. Stephen writes about the nexus of technology, science, policy, and business on and off the planet. Advertisement Channel Ars Technica ← Previous story Next story → Related Stories Today on Ars

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Trump says he has asked Xi Jinping to free Briton Jimmy Lai

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Trump says he has asked Xi Jinping to free Briton Jimmy Lai

Donald Trump has asked his Chinese counterpart to release pro-democracy campaigner Jimmy Lai, who has been found guilty of national security offences in Hong Kong.

The US president said he felt “so badly” about the media tycoon and British citizen, 78, who was arrested in August 2020 after China imposed a national security law following massive anti-government protests in Hong Kong.

Lai, who had previously been sentenced for several lesser offences during his five years in prison, could now spend the rest of his life behind bars.

Jimmy Lai. Pic: Reuters
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Jimmy Lai. Pic: Reuters

Mr Trump said he had spoken to Xi Jinping about Lai’s case and asked for his release.

“I spoke to President Xi about it, and I asked to consider his release,” he said. “He’s not well, he’s an older man, and he’s not well, so I did put that request out. We’ll see what happens.”

It comes as UK Foreign Secretary Yvette Cooper said China’s ambassador to the UK had been summoned over Lai’s conviction to underline the government’s position in the “strongest terms”.

Speaking in parliament, she repeated calls for Lai to be released and called the conviction “a politically motivated prosecution”.

People wait to enter the court building ahead of the verdict. Pic: AP
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People wait to enter the court building ahead of the verdict. Pic: AP

Ms Cooper made the remarks after Sir Keir Starmer’s spokesperson said Lai’s case has been a priority for the government and “we will continue to call for his immediate release”.

Earlier in the day, China’s ambassador to the UK, Zheng Zeguang, met with a senior official at the UK Foreign Office “to lodge solemn representations over the UK side’s statement that made irresponsible remarks on the Hong Kong High Court’s guilty verdict in the Jimmy Lai case”, China’s embassy said.

Explained: Who is Jimmy Lai?

Lai, who founded the now-defunct pro-democracy newspaper Apple Daily, was charged with two counts of conspiracy to commit collusion with foreign forces to endanger national security, as well as one count of conspiracy to distribute seditious publications. He was found guilty of all three charges.

Speaking after the verdict, Lai’s daughter Claire said if he were released he would devote himself to God and his family rather than political activism.

“He just wants to reunite with his family. He wants to dedicate his life to serving our Lord, and he wants to dedicate the rest of his days to his family,” Claire Lai told the Associated Press. “My father is fundamentally not a man who operates on illegal ground.”

Claire Lai. Pic: Reuters
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Claire Lai. Pic: Reuters

She said five years of solitary confinement has taken a toll on his health, and he has lost a significant amount of weight.

“He is a lot weaker and has only gotten weaker in the last year,” she said. “He has back pains and waist pains, his nails… when we visit, we can tell that they’re turning colours and falling off. Some of his teeth are rotting.”

He also has heart palpitations, is diabetic and his vision and hearing are failing, she added.

Hong Kong’s security chief, Chris Tang, said Lai has received “full medical services” and has never complained of the medical care he has been given.

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Jimmy Lai’s son: UK government must ‘do more’

‘You’ve got to keep fighting’

Meanwhile, her brother Sebastian Lai is lobbying the UK government for their father’s release.

“Regarding the United Kingdom, we talk about normalising relationships. Well, my father’s freedom should be a precondition to that,” he said.

Asked if he is optimistic international pressure can help, he said: “I think you’ve got to keep fighting no matter what. I think, taking my father’s example, standing up for what is right is why we’re doing it. This is my way of fighting for it.”

Hong Kong’s leader John Lee welcomed the verdict, saying: “He has harmed the fundamental interests of the country and the well-being of the people of Hong Kong; his actions are shameful and his intentions malicious.”

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European leaders back ‘multinational force’ to secure peace in Ukraine, as US commits to security guarantees

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European leaders back 'multinational force' to secure peace in Ukraine, as US commits to security guarantees

European leaders have called for a “multinational force” to secure Ukraine after any peace deal with Russia, as they struck an optimistic tone after talks in Berlin.

In a joint statement, they heralded “significant progress” – boosted by a new US commitment to provide unspecified security guarantees to Ukraine.

German Chancellor Friedrich Merz described the guarantees by the US as “truly remarkable” and a “very important advancement”.

Adding to the positive mood music, Donald Trump said he believed “we are closer now than we have been ever” to agreeing a ceasefire for the deadliest conflict in Europe since the Second World War.

The comments round off two days of talks in Berlin between Ukrainian and US envoys Steve Witkoff and Jared Kushner, and a separate meeting of European leaders in the German capital.

Another high-level meeting, this time of the Ukraine Defence Contact Group, will be held on Tuesday. The British defence secretary, John Healey, will attend.

Read more: UK’s ‘sons and daughters’ need to be ready to fight

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Siobhan Robbins: Change in mood music after US-Ukraine talks

Ukrainian President Volodymyr Zelenskyy was not quite as cheery after Monday’s developments, called the talks on conceding territories to Russia “painful” and “very difficult”.

He told reporters in Berlin: “Frankly speaking, we still have different positions.”

Earlier, his security officials claimed to have dealt a lethal strike to a $400m (£299m) Russian submarine in the Black Sea – a claim that Russia rejected.

“The information from the Ukrainian special services about the alleged destruction of one of Russia’s submarines is not true”, said the Black Sea Fleet command.

Not a single ship or submarine of the Black Sea Fleet in the Novorossiysk base bay, nor their crews, were injured in the sabotage, the fleet command said.

Back in Berlin, European leaders issued a joint statement on behalf of the leaders of Germany, Denmark, Finland, France, Italy, the Netherlands, Norway, Poland, Sweden, and the UK, as well as the presidents of the European Council and the European Commission.

European, US and Ukrainian officials convened in the chancellery in Berlin. Pic: AP
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European, US and Ukrainian officials convened in the chancellery in Berlin. Pic: AP

The document said the leaders “welcomed the close work between President Zelenskyy’s and President Trump’s teams, as well as European teams over the recent days and weeks”.

“They agreed to work together with President Trump and President Zelenskyy to get to a lasting peace, which preserves Ukrainian sovereignty and European security.

“Leaders appreciated the strong convergence between the United States, Ukraine and Europe.”

Outlining what they considered necessary security guarantees, the leaders said the “multinational force” should be made up of countries from the so-called Coalition of the Willing and “supported by the US”.

They also said they “strongly support” Ukraine joining the European Union, and that it should be able to maintain its armed forces at a level of 800,000.

“It will assist in the regeneration of Ukraine’s forces, in securing Ukraine’s skies, and in supporting safer seas, including through operating inside Ukraine.”

A US official said about 90% of issues between the warring parties had been resolved and that they believed Russia would be open to Ukraine joining the European Union, and to the security guarantees in the deal.

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JetBlue passenger plane and US Air Force aircraft in near miss by Venezuela

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JetBlue passenger plane and US Air Force aircraft in near miss by Venezuela

A JetBlue passenger plane took evasive action to avoid a mid-air collision with a US Air Force plane flying with its transponder turned off near Venezuela, a pilot has said in an air traffic control recording.

JetBlue Flight 1112 was flying to New York from the Caribbean nation of Curacao and was flying about 40 miles off the coast of Venezuela when the Airbus A320 reported encountering the air force refuelling tanker.

The air force pilot was within a few miles of the plane and at the same altitude.

The JetBlue pilot said on the recording: “We almost had a mid-air collision up here.

“They passed directly in our flight path… They don’t have their transponder turned on. It’s outrageous.”

The air force jet then entered Venezuelan airspace, the JetBlue pilot said.

A JetBlue spokesperson said the airline had reported this incident to federal authorities and will participate in any investigation.

The JetBlue A320 was bound for New York. Pic: Reuters
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The JetBlue A320 was bound for New York. Pic: Reuters

They added that: “Our crew members are trained on proper procedures for various flight situations, and we appreciate our crew for promptly reporting this situation to our leadership team.”

US southern command – responsible for US military operations in Central America, South America, and the Caribbean – said it was aware of the incident and reviewing the matter.

They added that: “Safety remains a top priority, and we are working through the appropriate channels to assess the facts surrounding the situation.”

Last month, the Federal Aviation Administration (FAA) warned major airlines of a “potentially hazardous situation” when flying over Venezuela and urged them to exercise caution.

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Why Trump cares about Venezuela

Major airlines from around the world have halted flights as tensions have worsened and US President Donald Trump has threatened to begin hitting land targets in Venezuela.

The incident follows a fatal accident between a US military helicopter and an American Airlines flight in January that left 67 dead.

That crash, which happened in the heart of Washington DC, highlighted the importance of clear communication between civil and military aircraft when operating in the same area.

US B52 bombers have been flying over the Caribbean and along the Venezuelan coast. Pic: Reuters
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US B52 bombers have been flying over the Caribbean and along the Venezuelan coast. Pic: Reuters

US military build-up in Southern Caribbean

The close call in the Caribbean happened as the US continues its military build-up in the area as President Trump campaigns to oust Venezuela’s President Nicolas Maduro.

The increase in US military presence includes flights by US bombers near Venezuela, the arrival of the world’s largest aircraft carrier and new agreements for US military assets to transit neighbouring countries.

On Monday, Trinidad and Tobago became the latest country to grant approval for US military aircraft to transit its airports in the coming weeks, according to the country’s foreign ministry.

All of these moves are aimed at increasing US pressure on Venezuela’s government.

Still of a video of US forces seizing a Venezuelan oil tanker. Pic: X/@AGPamBondi
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Still of a video of US forces seizing a Venezuelan oil tanker. Pic: X/@AGPamBondi

Last week, US forces seized an oil tanker off the coast of Venezuela, escalating tensions between Washington and Caracas.

Oil exports from Venezuela have fallen significantly since the ship’s seizure, according to shipping data and maritime sources.

Read more:
The US-Venezuela crisis explained
Who is Maria Corina Machado?

The seizure followed a large US naval build-up in the region, which has seen the US launch strikes against multiple boats purported to be smuggling drugs to America over the past few months.

The legality of such moves has been questioned but has not prevented their repeated use.

It is reported that Venezuela’s opposition leader Maria Corina Machado escaped with US help to the Caribbean Island of Curacao during a daring escape from her country – before arriving in Norway.

Pressed several times on whether she supported a possible US invasion of Venezuela to overthrow Nicolas Maduro, she would not commit outright but said the country has already been invaded by Russia, Iran and terrorist groups like Hezbollah.

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