XCOR Aerospace started up in 1999 as an American private spaceflight company, specializing in rocket engine development and suborbital spacecraft design.
They operated mainly out of Mojave, California. After nearly twenty years of pushing rocket tech forward, they filed for bankruptcy in 2017.
Back in 1999, a group of rocket engineers launched XCOR Aerospace in Mojave, California. They picked the Mojave Air and Space Port for its great testing grounds and ready-made aerospace infrastructure.
From the start, XCOR wanted to make space travel more accessible using reusable rocket tech. They pushed for cost-effective propulsion systems to support both commercial space tourism and government work.
Their main project? The Lynx suborbital spaceplane. This thing was supposed to take a pilot and one passenger to the edge of space for a few minutes of weightlessness, then bring them safely back.
XCOR tried to set themselves apart by focusing on rocket engine reliability and reusability. They figured this approach would cut operational costs compared to the usual expendable rockets.
XCOR focused on three main areas. Rocket engine development was their bread and butter, and they built methane-oxygen engines for different uses.
They teamed up with NASA and ATK to develop the XR5M15 engine for spacecraft propulsion. These partnerships brought in both technical credibility and funding to keep things moving.
Suborbital spacecraft development was their flashiest effort, especially with the Lynx program. The Lynx was meant to be a reusable launch vehicle that could take off and land vertically.
They aimed to tap into the space tourism market, planning to fly civilians up to about 100 kilometers for a few minutes of weightlessness and a killer view of Earth.
XCOR also chased government contracts and research partnerships. They worked with the U.S. Air Force and kept up relationships with international space agencies.
XCOR’s founding team had solid aerospace backgrounds, mostly in rocket propulsion. They brought in experience from other aerospace companies and research labs.
Over the years, leadership changed a lot as XCOR tried to balance engineering with business. The founders ran things at first but later brought in outside execs for business development and finance.
Frequent leadership turnover became a real headache. The engineers and business folks sometimes clashed, which led to instability.
This back-and-forth made it tough to keep a clear direction. It also hurt fundraising and made it harder to keep employees motivated, especially toward the end.
XCOR Aerospace put a lot of energy into the Lynx, a two-seat suborbital vehicle designed to compete with Virgin Galactic’s SpaceShipTwo.
They aimed for a horizontal takeoff and landing spaceplane that could serve both space tourism and scientific markets.
The Lynx stood out with its horizontal takeoff and landing design. XCOR engineers built it with lightweight materials and powered it using four reusable rocket engines.
It carried a pilot and one passenger up front in the cockpit. This setup gave passengers bigger windows and a more personal experience—definitely different from Virgin Galactic’s cabin model.
XCOR planned two versions of the Lynx. The Mark I prototype could reach 65 kilometers during test flights. The Mark II aimed for over 100 kilometers, hitting the official edge of space.
They included a pod for scientific gear, so researchers could run experiments during suborbital flights alongside tourists.
XCOR’s team spent years perfecting reusable, reignitable rocket engines. They’d been at it since 1999, drawing on expertise that honestly goes back to the early days of rocketry.
XCOR planned to wet-lease the Lynx to operators instead of handling all flights themselves. This model separated building the vehicle from running flights and selling tickets.
They basically wanted to be the Boeing or Airbus of spaceplanes. XCOR would design, build, and test-fly, while partners took care of commercial operations.
Space Expedition Corporation signed on as XCOR’s first big partner and sales agent. The Dutch company managed marketing and customer relations for Lynx flights worldwide.
Each Lynx flight carried just one paying passenger with the pilot. XCOR promoted this as a plus—no awkward moments with other tourists, just you and the edge of space.
The Lynx was designed for quick turnarounds. Thanks to those reusable engines, they hoped to fly the same vehicle multiple times a day.
From the get-go, XCOR targeted both space tourism and scientific payload customers. They figured having more than one revenue stream would make the business steadier.
Space Expedition Corporation sold over 250 tickets for future Lynx flights. Most buyers wanted the Mark II, which would reach the 100-kilometer mark.
They went head-to-head with Virgin Galactic for the space tourism crowd. Both companies operated out of Mojave and chased similar customers.
XCOR pitched the Lynx as a more personal space experience. Passengers sat right up front with the pilot, not in a crowded cabin.
The scientific market was a big opportunity, too. Researchers could book whole flights for experiments or share with tourists, which added more revenue per mission.
XCOR Aerospace really pushed rocket engine technologies forward, especially with their piston pump designs, methane-oxygen engines, and partnerships with NASA and United Launch Alliance.
Over 15 years, they built 13 different rocket engines, racking up more than 4,000 engine firings and nearly 500 minutes of runtime.
XCOR worked with NASA and ATK to create the XR5M15 methane-oxygen engine. This engine was a big step forward for spacecraft propulsion.
The XR5M15 ran on methane and liquid oxygen. This combo burns cleaner than kerosene and stores better than liquid hydrogen.
XCOR designed and built the XR5M15 specifically for spacecraft main propulsion. They test-fired it successfully, showing that methane-oxygen engines could really work for future spacecraft.
Their work helped NASA explore alternative rocket fuels. Methane-oxygen engines became more relevant for Mars missions, since you could maybe make methane right on Mars.
In March 2011, XCOR teamed up with United Launch Alliance to develop advanced cryogenic rocket engines. They focused on building a flight-ready engine with 25,000 to 30,000 pounds of thrust using liquid hydrogen and oxygen.
The partnership aimed to cut engine costs and boost performance. ULA hoped to save hundreds of pounds of weight compared to older engines.
XCOR built the XR-5H25 subscale engine for this project. This 2,500-pound-thrust engine acted as a testbed for bigger designs.
They did the first hot fire test in November 2013, and it worked. The XR-5H25 was the first piston-pump-fed liquid hydrogen rocket engine ever demonstrated.
By April 2015, ULA considered the XCOR engine as a contender for their Advanced Cryogenic Evolved Stage upper stage, planned for after 2023.
XCOR hit some important milestones in rocket engine testing. They fired the first full piston pump-powered rocket engine in aviation and space history, which was a big deal for reusable spacecraft.
Their piston pump system allowed vehicles to fly more than once a day. This really changed how the industry thought about reusable rocketplanes.
XCOR engines powered both the EZ-Rocket and X-Racer aircraft. They built engines ranging from the tiny 15-pound-thrust Tea Cart Engine up to much larger ones.
The Tea Cart Engine saw over 1,800 firings and more than 9,000 seconds of runtime, which speaks to its reliability.
Their XR-4K14 engine powered the Rocket Racer, producing up to 1,800 pounds of thrust. It used pressure-fed liquid oxygen and pump-fed kerosene, with fuel stored in the wings to avoid complications with liquid oxygen pumps.
XCOR also developed Nonburnite, a cryo-compatible composite material made from thermoplastic fluoropolymer resin. They designed it for cryogenic tanks and vehicle structures.
XCOR Aerospace built its name through strategic partnerships with NASA for rocket engine development, plus commercial deals with big brands like KLM and Heineken to make space tourism more accessible.
XCOR worked closely with NASA to develop new propulsion systems. They teamed up with NASA and ATK to build methane-oxygen engines for spacecraft.
This partnership led to the XR5M15 engine. XCOR designed and tested it specifically for main propulsion in spacecraft.
NASA contracts gave XCOR both technical validation and funding for their rocket engine designs. The methane-oxygen engine tech was a leap forward in reusable propulsion.
XCOR’s work with NASA focused on making rocket engines more reliable and affordable. These efforts fit right in with NASA’s bigger push for commercial spaceflight.
XCOR set up partnerships with several big commercial brands to help build out space tourism. They struck deals with KLM, Unilever, Luminox, Philips, and Heineken to move the Lynx project forward.
These alliances brought in money and helped XCOR’s credibility in the market. KLM’s involvement tied XCOR to the airline industry’s experience with passengers.
They also signed a 15-year supply deal with Airgas Inc., the top U.S. distributor of gases and welding products. This ensured XCOR had the materials they needed for rocket engine production.
XCOR partnered with Syncroness Inc. for fast product development. They also created XCOR Space Expeditions as a subsidiary to handle training and medical screening for future Lynx passengers.
XCOR faced tough competition from deep-pocketed rivals like Virgin Galactic‘s SpaceShipTwo and Blue Origin‘s New Shepard. These companies attracted major investments and some celebrity attention, while smaller outfits like Armadillo Aerospace also chased suborbital flight dreams.
Virgin Galactic stepped up as XCOR’s main rival in the suborbital tourism scene. Richard Branson and his team built SpaceShipTwo, a six-passenger craft aiming for 50 miles up.
They grabbed some big advantages early on. Virgin Galactic pulled in hundreds of millions, way more than XCOR ever managed. Branson’s fame and the Virgin brand turned heads, drew media, and secured early deposits from eager customers.
Key Virgin Galactic advantages:
Virgin Galactic ran into trouble, including a tragic crash in 2014. Still, they kept their finances steady and pushed development forward. Eventually, they flew paying customers to space, proving there really was a market XCOR had helped kickstart.
Blue Origin, led by Jeff Bezos, brought serious resources to the table—far more than XCOR could dream of. Bezos sold Amazon stock to keep Blue Origin flush, so they never had to worry about outside investors breathing down their necks.
They built New Shepard, an automated capsule for six passengers. Blue Origin took their time, running loads of unmanned tests before letting people on board.
Blue Origin’s competitive strengths:
Blue Origin worked patiently while XCOR felt pressure to make money fast. XCOR rushed to market, but Blue Origin perfected their tech without worrying about cash. In the end, Blue Origin’s careful pace paid off, and they started flying crews in 2021.
Armadillo Aerospace, started by game developer John Carmack, went head-to-head with XCOR in the suborbital race. They built rockets, won NASA prizes for vertical takeoff and landing, and kept things interesting.
But funding tripped them up, too. Armadillo shut down in 2013 after investment dried up. Carmack later moved on to SpaceX as a consultant.
Additional competitive factors included:
Smaller companies struggled to survive in the suborbital market. High costs and thin revenue made it tough. XCOR’s bankruptcy was just one sign of the industry consolidating around the giants with deep pockets.
XCOR Aerospace managed to raise $19.3 million over five funding rounds from several investors during nearly 20 years in business. Still, they struggled to keep money flowing and finally filed for bankruptcy in November 2017 after failing to land new investment.
Throughout its run, XCOR worked with five main investors. They pulled off multiple funding rounds but never found the financial footing needed to survive in the cutthroat aerospace world.
Early investments helped XCOR build rocket engines and start their spaceplane projects. That $19.3 million total just didn’t cut it for what they wanted to do.
Right up until the end, XCOR’s management kept talking to potential backers. One group, led by a big aerospace firm in the UK, almost stepped in to fund the Lynx spaceplane program.
Another interested company liked XCOR’s tech but didn’t have the money to seal the deal. That left XCOR out of options.
XCOR aimed to build reusable rocket spacecraft and engines for both suborbital and orbital markets. Their business plan focused on making affordable propulsion systems for different customers.
Even with some technical wins, they found revenue hard to come by. At their peak, they brought in about $3.1 million a year and had around 20 employees when things shut down.
The suborbital tourism market barely existed while XCOR operated. Competing with better-funded outfits like Virgin Galactic and Blue Origin made things even tougher.
XCOR’s bankruptcy in November 2017 closed the book on almost 20 years of rocket and spacecraft development. Their story highlights just how tough it is for smaller aerospace firms to break into commercial space.
In 2012, XCOR Aerospace decided to move its headquarters from Mojave, California, to Midland, Texas. This was a big shift in strategy, putting Midland on the map as a new hub for commercial spaceflight.
XCOR picked Midland for a few solid reasons. The Midland Development Corporation dangled a $10 million incentive package to lure the company’s HQ and research teams.
Midland had perks other places didn’t. The city gave XCOR access to the Midland International Air & Space Port, perfect for the Lynx’s horizontal launches.
They also liked the local talent pool. Midland’s oil and gas sector meant there were plenty of engineers and techs with hands-on experience—folks who knew valves, pipefittings, materials, and how to run a machine shop. That mattered for aerospace manufacturing.
Plus, the wide-open spaces around Midland made it a good spot for test flights. Unlike crowded aerospace hubs, Midland offered clear airspace and safer test conditions.
The move changed how XCOR worked. They set up a 60,000-square-foot hangar at Midland International Airport, combining offices and test areas under one roof.
XCOR split development between Midland and Mojave. Some staff stayed in California, but most packed up for Texas. This setup let them use the best of both locations.
By moving in, XCOR helped establish Midland’s new commercial spaceport. Their presence made the city’s investment in space look smart and drew other aerospace players to town.
But the transition wasn’t smooth. In 2016, XCOR laid off a big chunk of its Midland team, especially those on the Lynx suborbital project. Even after that, they kept a footprint in Texas and kept working at the spaceport.
XCOR’s troubles started piling up with long delays on the Lynx spaceplane. They took another hit when key engine development contracts—vital for keeping the lights on—suddenly vanished.
The Lynx suborbital program dragged on way longer than planned, pushing commercial flights further out. XCOR once claimed their two-seater would beat Virgin Galactic to space.
Technical headaches kept coming as they tried to nail the rocket-powered takeoff and glide-back landing. The Lynx was supposed to carry one pilot and one passenger from a regular runway to suborbital space.
Money got tight as costs blew past early estimates. By May 2016, XCOR laid off about half its people. They made the call to stop Lynx development altogether.
Leadership said they’d shift focus to projects that could bring in cash sooner. Pausing Lynx marked a turning point, basically shelving their main space tourism dream.
Things got worse fast after XCOR lost a major engine contract. Former CEO Jay Gibson told a Senate committee that losing this deal caused their worst problems.
XCOR had been working on the 8H21 engine for United Launch Alliance’s Vulcan rocket. That ULA contract was a lifeline while Lynx was on hold.
Gibson said they got just 30 days’ notice before the contract ended. They’d counted on funding for at least another year.
According to SpaceNews, this sudden cash loss left XCOR scrambling for other funding. In June, the company laid off everyone left, blaming the tough financial situation.
XCOR Aerospace filed for Chapter 7 bankruptcy in November 2017. After nearly 20 years building rocket engines and suborbital ships, they sold off everything when they couldn’t find new funding.
XCOR had wrestled with financial problems for years before bankruptcy. They’d worked on the Lynx since the early 2000s but kept running into delays and cost overruns.
The Lynx needed a lot of money to finish and fly commercially. XCOR kept running into technical hurdles during development.
Main financial pressures:
XCOR operated out of Mojave Air and Space Port in California and Midland International Air and Spaceport in Texas. Both locations meant high overhead while Lynx sat unfinished.
Their whole business depended on finishing Lynx and selling flights. With no paying customers and no end in sight, they just couldn’t keep up.
XCOR filed for Chapter 7 bankruptcy on November 8, 2017, in California’s Eastern District. With Chapter 7, they had to sell off everything to pay creditors.
They listed over 100 creditors, from individual investors to aerospace suppliers and government agencies. The debts touched nearly every part of their operations.
The filing covered:
Court records showed just how deep their financial hole had gotten. Debt piled up as they tried to finish Lynx.
The bankruptcy process moved quickly. XCOR’s 18-year run as an aerospace company ended with the liquidation.
The court handled selling off XCOR’s assets through auctions and direct deals. They sold aerospace gear, intellectual property, and everything left in their California and Texas sites.
Different companies picked up bits of XCOR’s tech and equipment. The Lynx program itself didn’t survive under new owners. Most things sold off piecemeal, not as a package.
Assets sold included:
XCOR’s story shows how tough it is for small aerospace outfits in commercial space. Without enough money and clear timelines, building spaceships just isn’t easy.
Former XCOR folks scattered to other aerospace jobs in California and Texas. Some landed with space tourism firms; others joined traditional aerospace contractors.
When the company closed, it marked the end of one of the early commercial spaceflight pioneers. XCOR was among the first to chase reusable suborbital vehicles for regular people.
XCOR Aerospace really pushed the boundaries with critical technologies for horizontal takeoff spacecraft. They set up safety protocols that still shape modern space tourism development.
Their piston-pump rocket engines and bold operational concepts changed how the industry thinks about reusable spacecraft. It’s hard not to notice that influence.
XCOR’s horizontal takeoff and landing changed the game for spacecraft operations. They built piston-pump rocket engines that engineers found more reliable than traditional turbopump systems.
These engines could restart several times during a flight, which made them a safer bet for tourist missions. That’s a big deal.
The Lynx spaceplane design made other companies rethink their own suborbital vehicles. XCOR proved spacecraft could run more like commercial planes, taking off from regular runways instead of elaborate launch pads.
This idea slashed operational costs in a noticeable way.
Their work with researchers opened up new possibilities for suborbital flights. Scientists got a chance to run experiments while tourists floated in weightlessness.
This approach created more ways to make money from each flight, laying a solid economic foundation for space tourism.
XCOR’s technical breakthroughs still echo in today’s space tourism projects. Their emphasis on reusable engines and quick turnaround times basically set the bar for the industry.
Modern companies now chase XCOR’s dream of flying multiple missions a day with the same vehicle. That’s a pretty ambitious standard.
The company’s struggles also taught everyone some tough lessons about funding and project management. Virgin Galactic and Blue Origin, for example, really took those lessons to heart and tweaked their own timelines.
The industry realized it needs to plan conservatively and keep healthy funding reserves.
XCOR’s vision—making space flight as routine as catching a plane—still drives innovation. Even now, developers look back at XCOR’s work on efficiency and safety for inspiration.
XCOR Aerospace got a lot of attention from industry media, especially from specialized publications and aerospace analysts. Their media strategy targeted credibility in the commercial spaceflight world.
SpaceNews basically became the go-to source for updates on XCOR’s journey. They covered the Lynx spacecraft program closely and reported on every key development milestone.
Bryan Campen came on board as Director of Media and Public Relations in September 2012. He managed relationships with big print and TV outlets across the U.S. from 2011 to 2016.
Media stories often highlighted XCOR’s reusable rocket engine tech. They designed four engines to power the Lynx into suborbital space, which set them apart from competitors in a lot of reports.
SpaceNews didn’t shy away from XCOR’s financial troubles either. They covered the company’s search for funding, including talks with a major aerospace firm in the UK.
Industry analysts tracked XCOR’s progress in various aerospace publications and research notes. Jeff Foust and other experts weighed in on their business model and technical chops.
Analysts pointed out XCOR’s potential for military uses beyond tourism. The US Marines even looked into suborbital vehicles for rapid troop deployment.
That kind of military interest brought extra media attention, not just from the civilian space tourism side.
Coverage often compared XCOR to competitors like Virgin Galactic and Blue Origin. Analysts liked to point out XCOR’s focus on reusable rocket technology as a real differentiator.
Financial analysts followed XCOR’s funding struggles through 2016 and 2017. They reported on the company’s efforts to land investments before XCOR finally closed its doors.
XCOR Aerospace built several rocket engine types, including kerosene-oxygen and hydrogen-oxygen systems. They designed the Lynx spacecraft to carry passengers on suborbital flights above 100 kilometers.
Unfortunately, financial troubles led to bankruptcy in 2017, even after they hit some pretty impressive private spaceflight milestones.
XCOR Aerospace focused on making reusable, non-toxic rocket engines for a range of uses. They chose fuel combinations based on what each engine needed to do.
Their XR-4A3 engines made 400 pounds of thrust and powered the EZ-Rocket aircraft. Those engines ran on kerosene and liquid oxygen.
The XR-4K14 engine, which powered the X-Racer, delivered about 1,500 to 1,800 pounds of thrust. This one used a mix of pressure-fed liquid oxygen and pump-fed kerosene.
XCOR built the XR-5H25 engine for United Launch Alliance. It put out 2,500 pounds of thrust and ran on liquid hydrogen and liquid oxygen, using a clever piston-pump-fed design.
They even made a small tea cart engine for demos. It produced 15 pounds of thrust using nitrous oxide and ethane, and you could safely fire it indoors.
The Lynx spacecraft could carry one pilot and one passenger on suborbital flights above 100 kilometers. It was about the size of a small private airplane.
XCOR wanted the Lynx to fly several times a day using reusable engines. This plan was supposed to keep operating costs much lower than traditional spacecraft.
The Lynx could haul up to 140 kilograms of payload in addition to the pilot. That payload split between a 20-kilogram compartment behind the pilot and a 120-kilogram section if you removed the passenger seat.
By 2012, XCOR had presold 175 Lynx flights at $95,000 each. They planned different versions, starting with the Mark I for early flights and the Mark II for expanded capabilities.
Development delays kept pushing the timeline. XCOR announced the Lynx in 2008, aiming for flights within two years, but the date slipped to 2012, then 2015, and eventually they stopped making predictions.
XCOR led the way in building reusable rocket engines that could fire multiple times without big overhauls. They designed these engines for repeated use with minimal maintenance.
The EZ-Rocket became the first rocket-powered aircraft that a private company built and flew. That proved private teams could pull off rocket-powered flight.
XCOR came up with new ways to manufacture rocket engine parts. They made aluminum alloy engine nozzles that could handle high temperatures through lots of test firings without falling apart.
They also invented Nonburnite, a composite material for building spacecraft. This thermoplastic fluoropolymer resin handled cryogenic temperatures and resisted microcracking, making it great for fuel tanks and structures.
Their piston-pump-fed engine design offered a fresh take on liquid hydrogen rocket engines. XCOR aimed to cut costs and boost reliability compared to the usual turbopump-fed systems.
XCOR charted its own course, separate from giants like SpaceX and Virgin Galactic. They focused on their own tech and flight systems.
Rather than compete head-to-head with other startups, XCOR partnered with established aerospace firms. Their biggest partnership was with United Launch Alliance for upper-stage engine work.
They teamed up with the Rocket Racing League to build the X-Racer. That partnership let XCOR show off their engines at air shows and racing events.
In 2014, XCOR bought Space Expedition Corporation to handle marketing and sales. They rebranded it as XCOR Space Expeditions to manage Lynx ticket sales.
XCOR set itself apart by focusing on horizontal takeoff and landing vehicles. That’s a totally different approach from the vertical launches used by SpaceX and Blue Origin.
XCOR flew the EZ-Rocket for the first time in July 2001. That flight marked the first privately built and operated rocket-powered aircraft.
In 2005, they pulled off the first rocket-powered mail delivery. Test pilot Dick Rutan flew the EZ-Rocket from Mojave to California City with official U.S. Mail.
XCOR managed seven rocket-powered flights in one day with the X-Racer in 2008. That really showed the potential for frequent, reusable rocket flights.
They successfully tested their XR-5H25 hydrogen-oxygen engine in November 2013. That was the first time anyone had demonstrated a piston-pump-fed liquid hydrogen rocket engine.
In 2015, XCOR landed a $140 million valuation thanks to an investment from Chinese venture firm Haiyin Capital. That was a big vote of confidence in their tech and their vision.
By 2015, XCOR ran into serious financial trouble, even though they’d landed some big investments. They started laying off employees and cutting back on their projects when the money just didn’t stretch far enough.
In May 2016, XCOR stopped working on the Lynx spacecraft and let go of more than 20 employees. They switched gears and focused mainly on engine development, especially for a contract with United Launch Alliance.
CEO John Gibson left in June 2017, taking all the remaining full-time staff with him. After that, XCOR brought back about half of those laid-off folks, but only on temporary contracts.
In November 2017, the company filed for Chapter 7 bankruptcy, which meant they had to sell off their assets. There wasn’t any attempt to reorganize or save the business at that point.
Around 282 customers had already paid up to $100,000 each for Lynx tickets. By December 2018, most of them still hadn’t seen any refunds, even though some money was supposedly sitting in escrow accounts.
