In June 2014, XCOR Aerospace, a private American spaceflight company, expanded its operations by acquiring the Space Expedition Corporation (SXC), a Dutch company specializing in space tourism. This strategic move led to the formation of XCOR Space Expeditions, a subsidiary dedicated to marketing, sales, and customer training for XCOR's suborbital spaceflights. The acquisition aimed to enhance XCOR's presence in the emerging commercial spaceflight industry and streamline its customer engagement processes.

Background of XCOR Aerospace

Founded in 1999, XCOR Aerospace was based in Mojave, California, and was renowned for developing reusable rocket-powered vehicles and propulsion systems. The company's flagship project was the Lynx suborbital spaceplane, designed to carry a pilot and a passenger to the edge of space. XCOR's mission focused on making space travel more accessible and affordable through innovative engineering and design. By 2015, the company had established a research and development center in Midland, Texas, and planned to set up an operational and manufacturing site at the Kennedy Space Center in Florida. Despite these advancements, XCOR faced financial challenges and filed for Chapter 7 bankruptcy in November 2017, leading to the cessation of its operations. ([en.wikipedia.org](

Formation and Role of Space Expedition Corporation (SXC)

Established in 2008, SXC was co-founded by Major Harry van Hulten and Lieutenant General (ret.) Ben Droste, both former Royal Netherlands Air Force pilots. The company was headquartered in Amsterdam, with additional operations in Curaçao, chosen for its favorable environment for space flights. SXC's primary objective was to offer suborbital space tourism experiences to the public, providing a unique opportunity to view Earth from space. The company aimed to make space travel a reality for private individuals, leveraging the expertise of its founders and partners. ([prnewswire.com](

Partnership and Acquisition by XCOR Aerospace

In June 2012, XCOR Aerospace appointed SXC as its General Sales Agent (GSA) for Lynx suborbital flights. This partnership involved SXC handling ticket sales through a network of certified "Space Tourism Specialists" and managing astronaut training and relations for Lynx flights from the Mojave Air and Spaceport. The collaboration was intended to leverage SXC's marketing and sales expertise to promote XCOR's space tourism offerings. ([prnewswire.com](

Building on this successful partnership, XCOR Aerospace acquired all operational subsidiaries of SXC in June 2014. The acquisition led to the rebranding of SXC as XCOR Space Expeditions, integrating it fully into the XCOR brand. This strategic move aimed to consolidate sales activities, enhance customer engagement, and strengthen commercial partnerships. XCOR Space Expeditions was tasked with focusing on global sales, commercial partnerships, and participant training, serving as an open sales channel for all future XCOR Lynx wet lease clients. ([](

Objectives and Operations of XCOR Space Expeditions

As a wholly owned subsidiary of XCOR Aerospace, XCOR Space Expeditions was based in Amsterdam, with a regional office in Hong Kong to cater to the Asian market. The subsidiary supported a global network of 50 independent resellers experienced in Lynx flight sales. XCOR Space Expeditions offered a range of space-focused training programs, including medical screenings, space simulator missions, and G-Force fighter jet flights for prospective Lynx flight participants. These initiatives were designed to prepare customers for the unique experience of suborbital space travel. ([](

In addition to its training programs, XCOR Space Expeditions engaged in strategic partnerships with global brands such as KLM, Unilever, Luminox, Heineken, and Sony Pictures Television. These collaborations aimed to enhance the visibility and appeal of XCOR's space tourism offerings, leveraging the established reputations and marketing reach of these companies. ([](

Challenges and Financial Difficulties

Despite the strategic acquisition and the establishment of XCOR Space Expeditions, XCOR Aerospace faced significant financial challenges. The company struggled to secure sufficient funding to continue the development and operation of the Lynx spaceplane. In 2015, XCOR announced a major restructuring, shifting its primary focus from the Lynx spaceplane to the development of liquid oxygen/liquid methane engines for the United Launch Alliance. This strategic pivot was intended to stabilize the company's financial position and ensure its survival in the competitive aerospace industry. ([orbitcodex.com](

However, these efforts were insufficient to overcome the financial difficulties. In November 2017, XCOR Aerospace filed for Chapter 7 bankruptcy liquidation, effectively ending the company's operations and development programs. The bankruptcy had significant implications for XCOR Space Expeditions, as the subsidiary was directly impacted by the parent company's financial collapse. ([orbitcodex.com](

Impact on Customers and the Space Tourism Industry

The bankruptcy of XCOR Aerospace and the dissolution of XCOR Space Expeditions had a profound impact on customers who had pre-purchased tickets for suborbital flights. Approximately 282 individuals had paid up to $100,000 each for a ride on the Lynx spaceplane. As of December 2018, many of these customers had not received refunds, leading to significant dissatisfaction and legal challenges. The situation highlighted the risks associated with investing in nascent commercial spaceflight ventures and underscored the importance of financial stability and transparency in the industry. ([en.wikipedia.org](

The dissolution of XCOR Space Expeditions also affected the broader space tourism industry. The company's ambitious plans to offer suborbital flights to the public were seen as a significant step toward making space travel accessible to private individuals. The failure of XCOR Aerospace and its subsidiary raised questions about the viability of commercial space tourism ventures and the challenges of transitioning from development to operational phases in the aerospace sector. ([orbitcodex.com](

Conclusion

The acquisition of Space Expedition Corporation by XCOR Aerospace in 2014 marked a significant development in the commercial spaceflight industry. The formation of XCOR Space Expeditions aimed to streamline sales and customer engagement for XCOR's suborbital flights. However, financial difficulties and strategic missteps led to the bankruptcy of XCOR Aerospace in 2017, resulting in the cessation of operations and the dissolution of XCOR Space Expeditions. The events surrounding this acquisition and its aftermath provide valuable lessons on the complexities and challenges of commercial space ventures, particularly in the realm of space tourism.

Sources

  • — XCOR Aerospace Acquires Space Expedition Corporation —
  • Aerospace Manufacturing and Design —