The Federal Aviation Administration (FAA) opened an investigation on Sir Richard Branson Virgin Galactic SpaceShipTwo vehicle. The Spaceship has been grounded due to safety concerns.
The investigation was a follow-up to a supposed mishap during Richard Branson's trip to space in July, 2021. The trip was said to have not been that smooth as it ought to be.
The opening of the investigation affected the Shares of Virgin Galactic's stock price which slipped on Thursday by 7.26% to an intraday low of $24.85."Virgin Galactic may not return the SpaceShipTwo vehicle to flight until the FAA approves the final mishap investigation report or determines the issues related to the mishap do not affect public safety,"
"The FAA is responsible for protecting the public during commercial space transportation launch and reentry operations."
The agency confirmed that Virgin Galactic's SpaceShipTwo did deviate from its Air Traffic Control clearance as it returned to Spaceport America. It is currently investigating the July 11 incident.
Shares of the aerospace firm have swung wildly in the past 12 months, jumping to as high as $62.80, and sinking as low as $14.27.
Analyst View
Space travels and exploration is gradually becoming a private business and is now attracting a lot of private organization and individual commercial interest. More tourists and explorers are now interested in seeing beyond this planet. However, human safety is key and of higher priority to the commercial returns and traveling pleasures of such undertakings. It is therefore a welcome development for the FAA and other similar regulatory agencies to ensure the safety of all stakeholders.
SOURCE: Business Insider
