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
Left-wing Labour MPs are split on whether they would welcome an Angela Rayner leadership bid, as speculation continues over whether Sir Keir Starmer can survive.
Senior MPs on the left have told Sky News that the former deputy prime minister “only needs to push the button” and she would have the support to take out her old boss.
But others said it “won’t wash with the public”, given it was only a few months ago that she resigned in scandal over her tax affairs. She has also been accused of not doing enough for the left while she was in government.
Sir Keir has insisted he would face down any threat to his leadership, while Ms Rayner’s allies say she has no plan to oust him.
But many MPs have said privately – if not publicly – that a challenge to his position appears increasingly inevitable given the state of the polls.
One MP in the socialist campaign group (SCG) said “all Angela needs to do is push the button” and MPs would get behind her – citing her popularity with the Labour membership.
Another MP said: “I think she would have a healthy number of people who would back her.”
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Ms Rayner, a former trade union rep, was elected by members to be deputy Labour leader in 2020. She was a longstanding member of Jeremy Corbyn’s shadow cabinet and is revered by many of her colleagueson the left for her rise from a working-class background to the top of British politics, having left school at 16, pregnant, and with no qualifications.
However one MP said while they personally “rate her a lot” she “could have done more” for the left while in government.
“Ange was the deputy leader for a long time. I have to say she went to ground for a long time and didn’t speak up. Whether she has the support of MPs or the country I don’t know.”
This view was echoed by another colleague, who said she is “complicit” in the government’s failures.
This MP, in a traditional red wall seat, said the “visceral dislike of Starmer is baked in” and they have never experienced anything like the anti-Labour sentiment they are hearing on the doorstep.
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1:46
Is Andy Burnham coming for Starmer?
They said any change of leader would have to be an outsider with a radical vision “like 1945”. “It would have to be Andy”, they said, referring to the Greater Manchester metro mayor Andy Burnham.
‘Burnham is a no-brainer’
Many MPs on both the left and the so-called “soft-left” told Sky News he would be their preferred candidate, given he is not associated with the current government, he has a different vision for the country and is popular with the public.
Mr Burnham is not currently an MP but he has not ruled out standing if a seat became available.
“In a hypothetical universe where all the barriers are overcome then Burnham is a no-brainer,” said one MP from the 2024 intake.
Another MP supportive of a Burnham takeover said a Rayner return “won’t wash with the public” given she had to resign from the second most senior position in government for underpaying stamp duty in September. They said it also wouldn’t be credible for her to “suddenly” start criticising the direction of the Starmer government given she was so closely tied to it.
As another MP put it: “I’d be backing a candidate from the left of the party. Angela Rayner is not from the left of the party.”
Other runners and riders
Any challenger would need the public backing of 80 colleagues to trigger a leadership contest. May is seen as crunch date if the local elections go as badly as predicted.
Image: Wes Streeting. Pic: PA
Other names that have come up include Health Secretary Wes Streeting and Home Secretary Shabana Mahmood. Mr Streeting is seen as a charismatic communicator who could take on Nigel Farage and Zack Polanski, while MPs within the “blue Labour” caucus are impressed with Ms Mahmood’s hard line on immigration.
But MPs on the left feel this would only offer a temporary boost in the polls as the pair are both seen as being on the centre-right, and a change of leader would be pointless without a change of direction.
Another name that has come up is the former Labour leader Ed Miliband, but while he is more to the left he has been rejected by the public once – having lost the 2015 election.
‘No active plot’
The MPs who spoke to Sky News stressed there was no active plot, but rather a general consensus that it is looking increasingly likely Sir Keir won’t be able to turn things around.
MPs who disagree with the prime minister’s politics said they are surprised at how personally disliked he is on the doorstep as he is ultimately a “nice man”.
They fear he has lost the trust of the public by saying one thing and doing another, with the winter fuel fiasco still coming up in areas where Reform UK is making gains.
As one MP put it: “We want him [Sir Keir] to do well and do better… but you can’t go on forever if things look terrible in the opinion polls.”
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MPs have recently revived the soft-left tribune group with the aim of influencing the government to take more of a progressive direction.
Ms Rayner addressed this group on Tuesday night, along with new deputy leader Lucy Powell and cabinet ministers Mr Miliband and Lisa Nandy.
One MP who spoke to Ms Rayner said she has “absolutely no plans” to launch a leadership bid “unless she is keeping it quiet”. They added that the subject of a leadership challenge didn’t come up in any of the speeches and there was an “upbeat atmosphere” following the lifting of the two-child benefit cap.
“The budget has landed well with the party,” they said. “[The meeting] felt like a sea change.”
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0:42
Streeting: ‘We need Rayner back’
As deputy prime minister and housing secretary, Ms Rayner introduced the Employment Rights Bill within 100 days and pushed through reforms to renters rights, the leasehold system and further devolution. She is also said to have played a crucial role in persuading Sir Keir to water down welfare cuts in the face of a major backbench rebellion.
A source close to her defended her record, saying she is “not interested in pacts and plots” and wants the government to succeed. They said she is not finished in politics but “she’s no one’s pawn, she’s her own person”.
Ms Rayner resigned after an ethics investigation found she acted in good faith, but broke the ministerial code by failing to get the correct tax advice after purchasing a flat in Brighton. She referred herself to HMRC and an investigation is ongoing.
Dulwich College has said allegations that Nigel Farage made racist and antisemitic comments to fellow pupils at the school are “profoundly distressing” and “entirely at odds with the Dulwich College of today”.
In the first reported statement from the school about the accusations – which date from 1970s – current master Robert Milne wrote “such behaviour is wholly incompatible with the values the College holds”.
“What we can unequivocally state is that the behaviours described are entirely at odds with the Dulwich College of today,” he continued
The comments come in a letter to former Dulwich pupil Jean-Pierre Lihou.
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3:22
Nigel Farage has previously said he “never directly racially abused anybody”.
Mr Farage has said he “never directly racially abused anybody” at Dulwich and said there is a “strong political element” to the allegations coming out 49 years later.
Reform’s deputy leader Richard Tice has called the ex-classmates “liars”.
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Nigel Farage said: “I have not met or spoken to this master. So I am surprised by his uninformed comments in response to claims from nearly 50 years ago from politically motivated actors.
“If he is interested, I can show him the many messages that I have received from fellow pupils, including Jewish ones, that entirely contradict these allegations.”
A spokesperson for Reform UK said: “This witch hunt is merely an attempt to discredit Reform and Nigel Farage.
“Instead of debating Reform on the substance of our ideas and policies, the left-wing media and deeply unpopular Labour Party are now using 50-year-old smears in a last act of desperation.
“The British public see right through it.”
Image: Dulwich College, pictured in 2022, has responded for the first time to claims Nigel Farage made racist comments as a student. Pic: PA
The letter also says the college has avoided making any public statements “to protect the college’s reputation in the long term”.
“This should not be interpreted as indifference: safeguarding the college’s good name and upholding its values are of paramount importance to us,” it continues.
Mr Lihou told Sky News he cautiously welcomed the letter written to him from the master and said he understands why the college wasn’t willing to unequivocally condemn the allegations against the Reform leader directly.
“Dulwich College has been clear that such accusations are very much at odds with the values of the school,” he said.
He added: “Why can Mr Farage not accept that approaching 30 people [who] have lasting memories from him as a 13-year-old to an adult that he should unreservedly apologise for?”
Sky News has contacted Dulwich College for a comment.
Volodymyr Zelenskyy says the US has offered to create a “free economic zone” in the contested Donbas region of eastern Ukraine in a bid to push a peace deal over the line.
The Donbas – an industrial and coal-mining area primarily made up of the Donetsk and Luhansk regions – has become one of the key sticking points in the US-proposed peace plan.
The first draft of the plan, widely leaked last month, stipulated that Ukraine must withdraw from areas of the Donbas it currently controls, thought to be a minority portion, as a condition for peace.
Image: Donald Trump meeting with Ukrainian President Volodymyr Zelenskyy at the White House in February. Pic: Reuters
Ukraine considered that point “unacceptable”, and Mr Zelenskyy has spent the last few weeks drafting a response to the plan that removed “obvious anti-Ukraine points”.
After a series of meetings with Ukraine’s European allies, including a trip to London to meet Sir Keir Starmer on Monday, Zelenskyy said on Thursday that he’d sent Washington a revised peace plan, whittled down to just 20 points.
The new US proposal envisions Ukraine withdrawing from its territory in the Donbas without the Russians advancing, creating a neutral zone.
But Zelenskyy poured cold water on the plans as he briefed journalists in Kyiv.
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Image: Rescuers work after a Russian air strike in Sumy region, Ukraine. Pic: Reuters
“Who will govern this territory, which they are calling a ‘free economic zone’ or a ‘demilitarised zone’ – they don’t know,” he said.
“If one side’s troops have to retreat and the other side stays where they are, then what will hold back these other troops, the Russians? Or what will stop them disguising themselves as civilians and taking over this free economic zone? This is all very serious.
“It’s not a fact that Ukraine would agree to it, but if you are talking about a compromise then it has to be a fair compromise.”
Sky News military analyst Michael Clarke gave an ominous assessment of the proposal, saying it left “no physical solution” to resolve the problem of future attacks.
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49:17
Michael Clarke assesses the state of the war in Ukraine
He said: “If Ukraine gives up the fortress cities in the Donbas, the only security they can have is by being heavily armed and being backed by their allies in some way.”
“The only thing that would stop Russia is deterrence: the knowledge that either the European forces were sitting in Ukraine ready to fight for them, which is hard to imagine at the moment, and even harder to imagine that they are backed up by American forces.”
Matthew Savill, director of military sciences at the Royal United Service Institute, was similarly sceptical.
“The general view is that the Russians will be too tempted to… try and come back for more,” he told Sky News.
He added that “some kind of temporary ceasefire” might work, but it would require “the Europeans to demonstrate they can put their forces where their mouth is in terms of a reassurance force”.
Amid this backdrop there was a meeting today of the coalition of the willing – the 34-strong bloc of nations pledged to support Ukraine against Russian aggression, of which Britain is a part.
There was agreement to continue to fund military support, “progress on mobilising frozen Russian sovereign assets”, and an update from Zelenskyy on Russia’s continued bombardment of his country, according to Downing Street.
Afterwards, Zelenskyy said the bloc was working to ensure any peace deal contains “serious components of European deterrence”.
Image: A Ukrainian serviceman in combat practice in Kharkiv region, Ukraine. Pic: Reuters
He added: “It is important that the United States is with us and supports these efforts. No one is interested in a third Russian invasion.”
He also addressed growing pressure from the US for an election in Ukraine, saying “there must be a ceasefire” before the country can go to the polls.
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Zelenskyy’s term expired last year, but wartime elections are forbidden by law in Ukraine.
Meanwhile, the tone tonight from the White House was one of impatience, with Trump’s team saying he wouldn’t attend further meetings until there’s a real chance of signing a peace deal.
“The president is extremely frustrated with both sides of this war, and he is sick of meetings just for the sake of meeting,” said White House spokeswoman Karoline Leavitt.