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That's a damn shame.

We definitely need more rather than less competition in 'new space'.

Why? Sending stuff into space isn't something I want an incompetent company doing. You can do a lot of damage in a lot of ways.
SpaceX’s first three launches were failures. I think the world is probably better for them not folding after the first.
and Virgin Galactic's first 50 launches were failures and VG's first 20 years of existence were a colossal failure. Maybe if a company can't make things work after two decades, it should be dissolved? Or should we let them exist in a malaise of failure for another decade?
Virgin Orbit actually had four successful launches and two failures (their first and apparently last launches). What’s sad about them collapsing right now is they were the only launch partner for the UK’s only spaceport, and if we were generous enough to chalk up the last failure as bad luck, it’s a shame if the whole ecosystem suffers, perhaps irreparably, because of it.
I think you know that OP didn't suggest that we have more incompetent companies.
If OP isn't suggesting that, then what's the shame in having an incompetent company go out of business?
It's a shame the company wasn't competent enough to succeed. Why must this be spelled out? I feel like half this thread is bad faith face-value pedanticism for no benefit.
Because it's about as meaningless a comment as saying "thoughts and prayers". There's nothing shameful about an incompetent company going out of business, it's actually exactly what should happen.
SpaceX’s secret sauce was mass manufacturing. Not building a rocket, but building a system that builds rockets. I remember, over a decade ago, looking at these shops and realising the specialty plane Virgin’s launch systems relied on were being built as works of art. Falcons, on the other hand, were not. Even with the company’s eye on reuse.
Mass manufacturing may be important, but there's also a fully reusable first stage, and then just executing. These days they're reusing things enough that I'm not sure the mass manufacturing is so important
SpaceX went through a similarly fragile stage where it nearly went bankrupt before it turned things around and managed to get the Falcon 9 going. Elon Musk got lucky with securing funding at the last minute. And of course he did take on a lot of personal financial risk at the time. Maybe the difference between Branson and Musk is how far they are willing to go.
Maybe also a lot of difference in what kind of engineering could be a foundation before becoming a billionaire?

It is kind of a space race after all.

> realising the specialty plane Virgin’s launch systems relied on

Virgin Galactic which depends upon those "specialty planes" is doing fine, apparently. It's Virgin Orbit with the 747-based system to orbit that is probably at its end.

> Virgin Galactic which depends upon those "specialty planes" is doing fine, apparently

Mhm.

Well, it's been a rocky ride overall but they're not running out of cash and have a big order book.
Long term Virgin Orbit probably did itself a favor with the launch failure - better a fast end than a slow strangulation by not being competitive with reusable rockets.
Oops a Chamath SPAC turned out to be just a vehicle to fleece retail?

It is truly amazing what you can legally get away with

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What are the remaining people going to spend their time doing?
I can only imagine.

A company doesn't develop the need to cease operations overnight.

There's usually a core of faulty decision-makers who have become ingrained over time, leading the way toward financial unsustainability. Their jobs can be basically untouchable while the company is seemingly operating without undue threat.

Once too much failure is undeniable, these people keep themselves on board to continue administering the company as well as possible before the money runs out.

Still untouchable but when you do the math the company will last a lot longer before total closure, being administered the way they do but without all that expensive operations stuff.

And maybe make a comeback if they can get some support but it may take confidence in their team's ability to succeed with perhaps a proven-to-fail mindset.

Some people can build that kind of confidence sometimes, you never know.

The same thing that leads toward doom could also be what keeps things alive as a zombie.