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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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Eurovision members to discuss voting ‘interference’ rule changes – and potential Israel ban

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Eurovision members to discuss voting  'interference' rule changes - and potential Israel ban

Members of the European Broadcasting Union (EBU) will meet today to discuss Israel’s involvement in next year’s Eurovision Song Contest.

The meeting at Eurovision’s organisers’ headquarters in Geneva will address the new rules intended to stop governments and third parties from disproportionately influencing voting.

Should members not be convinced about the new rules, there may be a vote on Israel‘s participation in 2026.

In November, the EBU changed the voting system for the song contest over allegations of “interference” from the Israeli government.

That came after Israeli singer Yuval Raphael received the largest number of votes from the public in this year’s contest, ultimately finishing as runner-up to Austria’s entry after the jury votes were counted.

After the final in May, Irish broadcaster RTE requested a breakdown in voting numbers from the EBU, while Spain’s public broadcaster, Radio Television Espanola, called for a “complete review” of the voting system to avoid “external interference”.

Dutch public broadcaster AVROTROS added in September that there had been “proven interference by the Israeli government during the last edition of the Song Contest, with the event being used as a political instrument”.

Their statement did not elaborate on the means of “interference”.

Israel has not commented on accusations of interference in voting. File pic: AP
Image:
Israel has not commented on accusations of interference in voting. File pic: AP

Israeli broadcaster still preparing entry

Israel has not commented on the accusations regarding voting for the contest, which stresses its political neutrality, but it has frequently claimed that it faces a global smear campaign.

KAN, the Israeli public broadcaster, also said it is preparing for next year’s Eurovision content.

It added it will present its position on possible disqualification at the meeting.

Boycotts threatened over war in Gaza

It comes after Slovenia and broadcasters from Spain, the Netherlands, Ireland and Iceland issued statements earlier this year saying they would consider boycotting the contest next year if Israel was allowed to enter over the war in Gaza.

In September, officials from the EBU announced plans for an emergency vote on Israel’s participation, with president Delphine Ernotte-Cunci saying “given that the union has never faced a divisive situation like this before”. The board agreed it “merited a broader democratic basis for a decision”.

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That was then called off in October after Israel and Hamas agreed to the US-backed peace plan for Gaza.

More than 70,000 Palestinians have been killed during Israel’s war in Gaza, according to the Hamas-run health ministry.

It was sparked by the 7 October 2023 attack by Palestinian militant group Hamas on Israel in which 1,200 people were killed and 251 taken hostage to Gaza.

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Soaring demand for mental health, ADHD and autism services to be reviewed after ‘overdiagnosis’ claim

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Soaring demand for mental health, ADHD and autism services to be reviewed after 'overdiagnosis' claim

A review into the rising demand for mental health, ADHD and autism services has been launched by the health secretary.

The independent review will look at rates of diagnosis, and the support offered to people.

Health Secretary Wes Streeting said the issue needs to be looked at through a “strictly clinical lens” after he claimed in March that there had been an “overdiagnosis” of mental health conditions, with “too many people being written off”.

Politics latest: Reform receives largest ever UK donation from living person

Mental health conditions are being more commonly reported among the working-age population, figures analysed by the Institute for Fiscal Studies found.

More than half of the increase in 16 to 64-year-olds claiming disability benefits since the pandemic is due to more claims relating to mental health or behavioural conditions.

A total of 1.3 million people claim disability benefits – 44% of all claimants – primarily for mental health or behavioural conditions, the analysis shows.

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The review will be led by leading clinical psychologist Professor Peter Fonagy, the national clinical adviser on children and young people’s mental health, who will work with academics, doctors, epidemiological experts, charities and parents.

He will look at what is driving the rising demand for services, and inequalities in accessing support.

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Govt orders review into ADHD rise

The Department of Health said 13 times more people were waiting for an autism assessment in September 2025 compared with April 2019.

There is £688m in extra funding going towards hiring 8,500 more mental health workers so the NHS can expand on talking therapies and increase the number of mental health emergency departments.

Mr Streeting said: “I know from personal experience how devastating it can be for people who face poor mental health, have ADHD or autism, and can’t get a diagnosis or the right support.

“I also know, from speaking to clinicians, how the diagnosis of these conditions is sharply rising.

“We must look at this through a strictly clinical lens to get an evidence-based understanding of what we know, what we don’t know, and what these patterns tell us about our mental health system, autism and ADHD services.

“That’s the only way we can ensure everyone gets timely access to accurate diagnosis and effective support.”

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ADHD is changing the world of work

Prof Fonagy said: “This review will only be worthwhile if it is built on solid ground. We will examine the evidence with care to understand, in a grounded way, what is driving rising demand.

“My aim is to test assumptions rigorously, and listen closely to those most affected, so that our recommendations are both honest and genuinely useful.”

The findings will be published next summer.

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Salisbury novichok poisonings: Putin ‘morally responsible’ for woman’s death after authorising botched spy assassination bid

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Salisbury novichok poisonings: Putin 'morally responsible' for woman's death after authorising botched spy assassination bid

The assassination attempt on a former Russian spy was authorised by Vladimir Putin, who is “morally responsible” for the death of a woman poisoned by the nerve agent used in the attack, a public inquiry has found.

The chairman, Lord Hughes, found there were “failings” in the management of Sergei Skripal, 74, who was a member of Russian military intelligence, the GRU, before coming to the UK in 2010 on a prisoner exchange after being convicted of spying for Britain.

But he found the assessment that he wasn’t at “significant risk” of assassination was not “unreasonable” at the time of the attack in Salisbury on 4 March 2018, which could only have been avoided by hiding him with a completely new identity.

Mr Skripal and his daughter Yulia, 41, who was also poisoned, were left seriously ill, along with then police officer Nick Bailey, who was sent to search their home, but they all survived.

Sergei Skripal and Yulia Skripal.
Pic: Shutterstock
Image:
Sergei Skripal and Yulia Skripal.
Pic: Shutterstock


Dawn Sturgess, 44, died on 8 July, just over a week after unwittingly spraying herself with novichok given to her by her partner, Charlie Rowley, 52, in a perfume bottle in nearby Amesbury on 30 June 2018. Mr Rowley was left seriously ill but survived.

In his 174-page report, following last year’s seven-week inquiry, costing more than £8m, former Supreme Court judge Lord Hughes said she received “entirely appropriate” medical care but her condition was “unsurvivable” from a very early stage.

The inquiry found GRU officers using the aliases Alexander Petrov, 46, and Ruslan Boshirov, 47, had brought the Nina Ricci bottle containing the novichok to Salisbury after arriving in London from Moscow with a third agent known as Sergey Fedotov to kill Mr Skripal on 2 March.

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L-R Suspects who used the names of Sergey Fedotov, Ruslan Boshirov and Alexander Petrov. Pics: UK Counter Terrorism Policing
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L-R Suspects who used the names of Sergey Fedotov, Ruslan Boshirov and Alexander Petrov. Pics: UK Counter Terrorism Policing

The report said it was likely the same bottle Petrov and Boshirov used to apply the military-grade nerve agent to the handle of Mr Skripal’s front door before it was “recklessly discarded”.

“They can have had no regard to the hazard thus created, of the death of, or serious injury to, an uncountable number of innocent people,” it said.

It is “impossible to say” where Mr Rowley found the bottle, but was likely within a few days of it being abandoned on 4 March, meaning there is “clear causative link” with the death of mother-of-three Ms Sturgess.

Novichok was in perfume bottle. Pic: Reuters
Image:
Novichok was in perfume bottle. Pic: Reuters

Lord Hughes said he was sure the three GRU agents “were acting on instructions”, adding: “I have concluded that the operation to assassinate Sergei Skripal must have been authorised at the highest level, by President Putin.

“I therefore conclude that those involved in the assassination attempt (not only Petrov, Boshirov and Fedotov, but also those who sent them, and anyone else giving authorisation or knowing assistance in Russia or elsewhere) were morally responsible for Dawn Sturgess’s death,” he said.

Russian ambassador summonsed

After the publication of the report, the government announced the GRU has been sanctioned in its entirety, and the Russian Ambassador has been summonsed to the Foreign Office to answer for Russia’s ongoing campaign of alleged hostile activity against the UK.

Sir Keir Starmer said the findings “are a grave reminder of the Kremlin’s disregard for innocent lives” and that Ms Sturgess’s “needless” death was a tragedy that “will forever be a reminder of Russia’s reckless aggression”.

“The UK will always stand up to Putin’s brutal regime and call out his murderous machine for what it is,” the prime minister said.

He said deploying the “highly toxic nerve agent in a busy city centre was an astonishingly reckless act” with an “entirely foreseeable” risk that others beyond the intended target would be killed or injured.

The inquiry heard a total of 87 people presented at A&E.

Pic AP
Image:
Pic AP

Lord Hughes said there was a decision taken not to issue advice to the public not to pick anything up which they hadn’t dropped, which was a “reasonable conclusion” at the time, so as not to cause “widespread panic”.

He also said there had been no need for training beyond specialist medics before the “completely unexpected use of a nerve agent in an English city”.

After the initial attack, wider training was “appropriate” and was given but should have been more widely circulated.

In a statement following the publication of his report, Lord Hughes said Ms Sturgess’s death was “needless and arbitrary”, while the circumstances are “clear but quite extraordinary”.

“She was the entirely innocent victim of the cruel and cynical acts of others,” he said.

'We can finally put her to peace' . Pic: Met Police/PA
Image:
‘We can finally put her to peace’ . Pic: Met Police/PA

‘We can have Dawn back now’

Speaking after the report was published, Ms Sturgess’s father, Stanley Sturgess, said: “We can have Dawn back now. She’s been public for seven years. We can finally put her to peace.”

In a statement, her family said they felt “vindicated” by the report, which recognised how Wiltshire police wrongly characterised Ms Sturgess as a drug user.

But they said: “Today’s report has left us with some answers, but also a number of unanswered questions.

“We have always wanted to ensure that what happened to Dawn will not happen to others; that lessons should be learned and that meaningful changes should be made.

“The report contains no recommendations. That is a matter of real concern. There should, there must, be reflection and real change.”

Wiltshire Police Chief Constable Catherine Roper admitted the pain of Ms Sturgess’s family was “compounded by mistakes made” by the force, adding: “For this, I am truly sorry.”

Russia has denied involvement

The Russian Embassy has firmly denied any connection between Russia and the attack on the Skripals.

But the chairman dismissed Russia’s explanation that the Salisbury and Amesbury poisonings were the result of a scheme devised by the UK authorities to blame Russia, and the claims of Petrov and Borisov in a television interview that they were sightseeing.

The inquiry chairman said the evidence of a Russian state attack was “overwhelming” and was designed not only as a revenge attack against Mr Skripal, but amounted to a “public statement” that Russia “will act decisively in its own interests”.

Lord Hughes found “some features of the management” of Mr Skripal “could and should have been improved”, including insufficient regular written risk assessments.

But although there was “inevitably” some risk of harm at Russia’s hands, the analysis that it was not likely was “reasonable”, he said.

“There is no sufficient basis for concluding that there ought to have been assessed to be an enhanced risk to him of lethal attack on British soil, such as to call for security measures,” such as living under a new identity or at a secret address, the chairman said.

He added that CCTV cameras, alarms or hidden bugs inside Mr Skripal’s house might have been possible but wouldn’t have prevented the “professionally mounted attack with a nerve agent”.

Sky News has approached the Russian Embassy for comment on the report.

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