Space Tourism(3 / 3)

—MichaelBelfiore

ThefounderofSpaceXisElonMusk,athirty-three-year-oldphysicsmajorfromSouthAfricawhomadehisfortuneasanearlystageinvestorinvariousInternetcompaniesincludingZip2(acquiredbyCompaqfor$22million)andPayPal(whichwassoldtoeBayfor$1.5billionnettingMuskover$200millionpersonally).ElonMusk'slong-termobjectiveistoenablethecolonizationofMarsbyhumans.Heseesbeingabletolaunchcommercialsatellitescheaplyasagoodsteppingstonetoacquiringthetechnicalcapabilitiesrequiredforhumanspaceflight.

"TransportationissuchafundamentalinputtoanybusinessplanthatIthinktherearegoingtobealotofapplicationsthatpeoplecan'tevenguessattoday.Themostsignificantbusinessisprobablypeoplethatwanttogotospace."

—ElonMusk

Todrivedownthecostofsatellitelaunches,SpaceXhasidentifiedthefivemaincostdriversandisnowworkingtoprogressivelyreduceeachofthesedrivers:

■Overhead—replaceahugebureaucracylikeNASAwithasmallentrepreneurialcompanywithlowercosts.

■Rocketengines—replacecomplexdesignswithsimpletwo-stagerocketswhichwillneedsimplifiedcontrolandmanagementsystems.

■Structures—theactualbodyoftherocket,itsfuelandoxidizertanks.Again,bystickingtosimpledesigns,muchunnecessarycomplexitycanbeeliminated,whichhastheeffectofloweringcosts.

■Avionics—thesophisticatedcomputersandsoftwarewhichcontroltheothercomponentstoguidetherocketintheintendeddirection.

■Thelaunchoperation—whichSpaceXaccomplisheswithalaunchteamoftwelvetofifteenpeopleratherthanthe300ormoretypicallyusedbysatellitelaunchcompanies.