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Effectiveness of Loan Guarantees versus Tax Incentives for Space Launch VenturesOver the course of the past few years, several new and innovative fully or partiailly reusable launch vehicle designs have been initiated with the objective of reducing the cost of space transportation. These new designs are in various stages hardware development for technology and system demonstrators. The larger vehicles include the Lockheed Martin X-33 technology demonstrator for VentureStar and the Space Access launcher. The smaller launcher ventures include Kelly Space and Technology and Rotary Rocket Company. A common denominator between the new large and small commercial launch systems is the ability to obtain project financing and at an affordable cost. Both are having or will have great difficulty in obtaining financing in the capital markets because of the dollar amounts and the risk involved. The large established companies are pursuing multi-billion dollar developments which are a major challenge to finance because of the size and risk of the projects. The smaller start-up companies require less capital for their smaller systems, however, their lack of corporate financial muscle and launch vehicle track record results in a major challenge to obtain financing also because of high risk. On Wall Street, new launch system financing is a question of market, technical, organizational, legal/regulatory and financial risk. The current limit of acceptable financial risk for Space businesses on Wall Street are the telecommunications and broadcast satellite projects, of which many in number are projected for the future. Tbc recent problems with Iridium market and financial performance are casting a long shadow over new satellite project financing, making it increasingly difficult for the new satellite projects to obtain needed financing.
Document ID
19990101869
Acquisition Source
Marshall Space Flight Center
Document Type
Conference Paper
Authors
Scottoline, S.
(GPS Solutions, Inc. Carson City, NV United States)
Coleman, R.
(GPS Solutions, Inc. Carson City, NV United States)
Date Acquired
September 6, 2013
Publication Date
September 15, 1999
Subject Category
Administration And Management
Meeting Information
Meeting: Space Technology
Location: Albuquerque, NM
Country: United States
Start Date: September 28, 1999
End Date: September 30, 1999
Sponsors: American Inst. of Aeronautics and Astronautics
Distribution Limits
Public
Copyright
Work of the US Gov. Public Use Permitted.
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