Blue Origin's New Glenn rocket has been grounded by the Federal Aviation Administration (FAA) following a failed satellite launch on Sunday, marking a significant setback for Jeff Bezos' space venture.
The FAA has ordered a formal mishap investigation after the rocket, on only its third flight, failed to deliver an AST SpaceMobile satellite to its intended low Earth orbit. The satellite, designed to provide mobile phone connectivity, was left in an unusable position due to what Blue Origin CEO Dave Limp described as insufficient engine thrust.
"We clearly didn't deliver the mission our customer wanted, and our team expects," Limp stated, acknowledging the failure.
The FAA will oversee Blue Origin's investigation into the incident, with the regulatory body requiring approval of any corrective actions before the rocket can return to flight operations. This grounding comes at a critical time for Blue Origin, which had planned approximately a dozen launches this year.
AST SpaceMobile's share price dropped more than 6% following the announcement, though the company confirmed insurance would cover the satellite loss. The incident highlights the challenges facing companies racing to establish satellite internet constellations in low Earth orbit.
Blue Origin had recently announced its TerraWave project, aiming to launch thousands of satellites to compete with Elon Musk's Starlink network, which already has several thousand operational satellites. Amazon, Bezos' other company, has also invested heavily in satellite technology with its $11 billion acquisition of a satellite manufacturer for its Leo project.
The FAA will determine when New Glenn can resume launches based on the investigation findings, as Blue Origin works to implement improvements from the data collected during Sunday's failed mission.