Richard Branson’s Virgin Orbit bankruptcy filing hits hopes Japan build a domestic space industry, but plans to build a “cosmodrome” are shelved due to lack of funding.

Oita Prefecture, home to most of Japan’s hot springs, partnered with Virgin Orbit in 2020 to set up Asia’s first spaceport at the region’s airport, using a Boeing BA.N 747 for horizontal rocket launches.

Virgin Orbit, founded by British billionaire Richard Branson, has been touted as a platform to launch military or intelligence satellites for the US and its allies, including Japan, at a time when both Washington and Tokyo are concerned about China’s rise as a space power.

The original goal was to launch small satellites from Oita as early as 2022, but this never materialized, another setback in Japan’s bid to become a major player in the competitive commercial satellite launch market.

Hopes for tourism

The Oita region estimates that the spaceport will generate revenue of up to 10.2 million yen over the course of its five years of operation.

In fact, with an estimated 240,000 tourists visiting the site, local businesses have created alien-related mementos, from alien passports to bicycles marked “ET.”

Local residents still hope that someday a spaceport will start operating in the area. “It is possible that another company will buy Virgin Orbit. There are other companies and competitors besides Virgin Orbit that are considering horizontal launches, so Oita still has plenty of options to re-contract with them,” says Kunio Ikari, an economics professor at the local university.

Oita District said its efforts to operate the spaceport remain unchanged, but declined to comment on Virgin Orbit and the project’s current status. Oita Airport also refused to make statements.

Past failures

Although Japan has big ambitions in space, it has recently faced some other setbacks.

In particular, Japan’s H3 rocket failed to launch in March, another setback in the country’s efforts to lower the cost of space access and compete with Elon Musk’s SpaceX.

In addition, the Japanese space agency’s Epsilon solid-propellant rocket, which was supposed to carry IQPS small satellites, failed to launch in October.

After the failed launches, some experts are urging Japan to rethink its space industry priorities.

“Japan is too focused on launches,” said Yun Nagashima, an expert in cyber and space.

“As SpaceX promotes fuel-efficient rockets that can be reused, it would be better for Japan to become competitive in various space fields and sectors.”

^{Source: Reuters.}