FAA Grounds Bezos, Blue Origin After Satellite Failure

Blue Origin’s New Glenn rocket has been grounded after a failed satellite launch triggered a federal investigation, the US Federal Aviation Administration said.

The company, founded by Jeff Bezos, attempted to place a satellite for AST SpaceMobile into orbit during a launch on Sunday but failed to reach the required altitude, rendering the payload unusable.

Blue Origin CEO Dave Limp said the issue was caused by insufficient engine thrust. “We clearly didn’t deliver the mission our customer wanted, and our team expects,” he said.

The FAA has ordered a formal mishap investigation and will oversee the process, including approving the final report and any corrective actions before allowing the rocket to return to flight.

Sunday’s mission marked only the third launch of the New Glenn rocket, which the company had planned to fly about a dozen times this year.

AST SpaceMobile said the financial loss from the failed satellite would be covered by insurance, though it did not disclose the cost. Shares in the company fell more than 6% following the incident.

The satellite was intended for low-Earth orbit as part of efforts to expand global mobile connectivity from space, a rapidly growing sector attracting major investment.

Blue Origin has said it plans to deploy thousands of similar satellites under its TerraWave project, while Amazon is pursuing a parallel initiative after acquiring a satellite firm in an $11 billion deal.

Both companies are competing with SpaceX’s Starlink network, which already operates thousands of satellites providing internet access worldwide and is expected to go public later this year.