Commercial suborbital spaceflights should bring in between $600 million and $1.6 billion in revenue in their first decade of operations, according to a study commissioned by the U.S. and Florida governments and released on Wednesday

Tourism drives about 80 percent of the demand for suborbital flights. These flights reach about 63 miles above the planet's surface giving the fliers a few minutes to float in microgravity and have a view of the Earth against blackness of the space, before plunging back through the atmosphere.

Virgin Galactic, an offshoot of Richard Branson's London-based Virgin Group, is one of six firms developing reusable suborbital spaceships, an analysis by The Tauri Group of Alexandria, Virginia, found.

Prices currently range from $200,000 for a ride on Virgin Galactic's SpaceShip II, a six-passenger, two-pilot vehicle currently undergoing testing, to $95,000 for a flight on privately held XCOR Aerospace's planned two-seater Lynx vehicle.

Virgin Galactic, which is aiming to begin commercial service around 2014, already has $70 million in deposits from 536 people, Chief Executive George Whitesides said at a related congressional hearing on Wednesday.

The Tauri Group believes there are about another 7,500 wealthy people waiting in the wings.

"“Our analysis indicates that about 8,000 high-net-worth individuals from across the globe are sufficiently interested and have spending patterns likely to result in the purchase of a suborbital flight - one-third from the United States," the report said as per reuters.

"“We estimate that about 40 percent of the interested, high-net-worth population, or 3,600 individuals, will fly within the 10-year forecast," it added.

The study, which included surveys of 200 people with a net worth of least $5 million, valued the upcoming industry at $600 million in its first decade, based on current market conditions and interest.

(You need to login first to read complete news).
New User? Register for FREE!
» Back to Travel News