SpaceX Blast Could Cost Israeli Taxpayers Millions in Damages

Israeli firm SpaceCom's Amos-6 satellite was lost when the rocket exploded during takeoff, now it wants Tesla and Israel Aerospace Industries to compensate them.

Miranda Lee Murray
Send in e-mailSend in e-mail
An explosion on the launch site of a SpaceX Falcon 9 rocket is shown in Cape Canaveral, Florida September 1, 2016.
An explosion on the launch site of a SpaceX Falcon 9 rocket is shown in Cape Canaveral, Florida September 1, 2016. Credit: Reuters
Miranda Lee Murray

DPA - The Israeli company whose satellite was destroyed when the SpaceX rocket carrying it into orbit exploded is set to receive more than $200 million in compensation, the firm said in a filing on Sunday.

SpaceCom's Amos 6 satellite was lost on Thursday when the SpaceX Falcon 9 rocket exploded on its launch pad in Florida during a test run.

Israel Aerospace Industries (IAI), which built the satellite, is on the hook for at least $173 million in damages. When interest is included SpaceCom will receive $205 million from IAI, according to SpaceCom's filing with the Tel Aviv Stock Exchange.

SpaceCom also plans to seek $50 million from SpaceX, founded in 2002 by Tesla Motors' Elon Musk. In a statement Friday, SpaceX, which seeks to be the first to offer passenger flights into space, said that it had launched an investigation into the explosion.

SpaceCom will also get back money it paid to insure the Amos-6 satellite in orbit. It added that once it receives its compensation, it will be able to pay off bondholders $232 million they are owed, Reuters said.

SpaceX CEO Elon Musk poses by the Dragon V2 spacecraft in Hawthorne, California May 29, 2014.Credit: Reuters

The satellite had been partially leased by Facebook for its Internet.org project to bring more Internet access to less developed countries. The destroyed device was meant for use over Africa.

SpaceCom was scrambling Sunday to ensure an August 24 deal to be bought by China-based Xinwei went through after seeing its shares plummet following the explosion, according to media reports.

Comments

SUBSCRIBERS JOIN THE CONVERSATION FASTER

Automatic approval of subscriber comments.
From $1 for the first month

SUBSCRIBE
Already signed up? LOG IN

ICYMI

בנימין נתניהו השקת ספר

Netanyahu’s Israel Is About to Slam the Door on the Diaspora

עדי שטרן

Head of Israel’s Top Art Academy Leads a Quiet Revolution

Charles Lindbergh addressing an America First Committee rally on October 3, 1941.

Ken Burns’ Brilliant ‘The U.S. and the Holocaust’ Has Only One Problem

Skyscrapers in Ramat Gan and Tel Aviv.

Israel May Have Caught the Worst American Disease, New Research Shows

ג'אמיל דקוור

Why the Head of ACLU’s Human Rights Program Has Regrets About Emigrating From Israel

ISRAEL-VOTE

Netanyahu’s Election Win Dealt a Grievous Blow to Judaism