The parent company of S7 Airlines (S7, Novosibirsk), the S7 Group, has signalled its entry into the space industry following the acquisition of assets owned by the Sea Launch Group from the United States in a deal worth USD150 million. In a statement, the Russian conglomerate said it sees long-term prospects in the space sector.
Under the deal, the S7 Group has acquired the Sea Launch Commander vessel with launch support equipment, as well as ground support equipment at the home port facility in Long Beach, California. Furthermore, the company has purchased the Sea Launch trademark. The agreement is subject to approval by both Russia and the US, and is expected to be closed within six months.
The Chief Executive Officer (CEO) of the S7 Group, Vladislav Filev, said: "We plan to de-mothball the complex and restart space launches 18 months after the deal approvals are obtained, which is anticipated to be late 2018. We expect to be able to perform up to 70 launches within 15 years without making any major investments in upgrades to the Sea Launch complex. The acquisition of the Sea Launch is a 'ticket' for us to enter the space industry.”
The S7 Group also signed a cooperation agreement with Russia’s spacecraft and space station manufacturer RSC Energia, which owns a majority share in Sea Launch. The two will work together to resume operations at the Sea Launch complex.
Sea Launch is a commercial launch services provider, which has been idle since the Russia – Ukraine conflict in 2014. As a result, long-term partner Boeing (BOE, Washington National) has filed a lawsuit against Energia over unpaid expenses. However, recent legal filings in the case indicate the two are negotiating a settlement.
