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For the first couple of decades the work was privately funded, with public funding beginning in 2009 through a European Space Agency (ESA) contract.The British government pledged £60 million to the project on 16 July 2013 to allow a prototype of the SABRE engine to be built, In 1982, when work commenced on the HOTOL by several British companies, there was significant international interest to develop and produce viable reusable launch systems, perhaps the most high-profile of these being the NASA-operated Space Shuttle.In October 2015, British defence conglomerate BAE Systems entered into an agreement with Reaction Engines, under which it would invest £20.6 million in REL to acquire 20% of its share capital, as well as to provide assistance in the development of the SABRE engine. An expansion deflection nozzle is capable of compensating for the changing ambient pressure encountered while gaining altitude during atmospheric flight, thus generating greater thrust and thereby efficiency.Work on STERN was continued in project STRICT (Static Test Rocket Incorporating Cooled Thrust-chamber), which investigated the stability of the engine's exhaust flow and the dissipation of the generated heat into the engine walls.Aerospace publication Flight International observed that HOTOL and other competing spaceplane programmes were "over-ambitious" and that development on such launch systems would involve more research and slower progress than previously envisioned.which it named Skylon after the Skylon structure that had inspired Alan Bond at the Festival of Britain exhibition.In conjunction with British Aerospace and Rolls-Royce, a promising design emerged to which the British government contributed £2 million towards its refinement; British engineer Alan Bond was amongst the engineers who worked on HOTOL.

On , REL stated that a preproduction prototype of the Skylon could be flying by 2016, and the proposed route would be a suborbital flight between the Guiana Space Centre near Kourou in French Guiana and the North European Aerospace Test Range, located in northern Sweden.REL intends ultimately to operate as a for-profit commercial enterprise which, upon the completion of development, shall manufacture Skylon vehicles for multiple international customers who shall operate their fleets directly, while being provided with support from REL.According to the company, its business plan is to sell vehicles for

On , REL stated that a preproduction prototype of the Skylon could be flying by 2016, and the proposed route would be a suborbital flight between the Guiana Space Centre near Kourou in French Guiana and the North European Aerospace Test Range, located in northern Sweden.

REL intends ultimately to operate as a for-profit commercial enterprise which, upon the completion of development, shall manufacture Skylon vehicles for multiple international customers who shall operate their fleets directly, while being provided with support from REL.

According to the company, its business plan is to sell vehicles for $1 billion each, for which it has forecast a market for at least 30 Skylons, while recurring costs of just $10 million per flight are predicted to be incurred by operators.

However, several officials have emerged as proponents and advocated for the official backing of the Skylon programme.

Speaking in 2009, the former UK Minister for Science and Innovation, Lord Drayson, stated of REL: During February 2009, following on from a series of extended discussions with the British National Space Centre (which later became the UK Space Agency), it was announced that a major funding agreement had been established between the British National Space Centre, ESA and REL, committing €1 million ($1.28 million) for the purpose of producing a demonstration engine for the Skylon programme by 2011.

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On , REL stated that a preproduction prototype of the Skylon could be flying by 2016, and the proposed route would be a suborbital flight between the Guiana Space Centre near Kourou in French Guiana and the North European Aerospace Test Range, located in northern Sweden.REL intends ultimately to operate as a for-profit commercial enterprise which, upon the completion of development, shall manufacture Skylon vehicles for multiple international customers who shall operate their fleets directly, while being provided with support from REL.According to the company, its business plan is to sell vehicles for $1 billion each, for which it has forecast a market for at least 30 Skylons, while recurring costs of just $10 million per flight are predicted to be incurred by operators.However, several officials have emerged as proponents and advocated for the official backing of the Skylon programme.Speaking in 2009, the former UK Minister for Science and Innovation, Lord Drayson, stated of REL: During February 2009, following on from a series of extended discussions with the British National Space Centre (which later became the UK Space Agency), it was announced that a major funding agreement had been established between the British National Space Centre, ESA and REL, committing €1 million ($1.28 million) for the purpose of producing a demonstration engine for the Skylon programme by 2011.

billion each, for which it has forecast a market for at least 30 Skylons, while recurring costs of just million per flight are predicted to be incurred by operators.However, several officials have emerged as proponents and advocated for the official backing of the Skylon programme.Speaking in 2009, the former UK Minister for Science and Innovation, Lord Drayson, stated of REL: During February 2009, following on from a series of extended discussions with the British National Space Centre (which later became the UK Space Agency), it was announced that a major funding agreement had been established between the British National Space Centre, ESA and REL, committing €1 million (

On , REL stated that a preproduction prototype of the Skylon could be flying by 2016, and the proposed route would be a suborbital flight between the Guiana Space Centre near Kourou in French Guiana and the North European Aerospace Test Range, located in northern Sweden.

REL intends ultimately to operate as a for-profit commercial enterprise which, upon the completion of development, shall manufacture Skylon vehicles for multiple international customers who shall operate their fleets directly, while being provided with support from REL.

According to the company, its business plan is to sell vehicles for $1 billion each, for which it has forecast a market for at least 30 Skylons, while recurring costs of just $10 million per flight are predicted to be incurred by operators.

However, several officials have emerged as proponents and advocated for the official backing of the Skylon programme.

Speaking in 2009, the former UK Minister for Science and Innovation, Lord Drayson, stated of REL: During February 2009, following on from a series of extended discussions with the British National Space Centre (which later became the UK Space Agency), it was announced that a major funding agreement had been established between the British National Space Centre, ESA and REL, committing €1 million ($1.28 million) for the purpose of producing a demonstration engine for the Skylon programme by 2011.

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On , REL stated that a preproduction prototype of the Skylon could be flying by 2016, and the proposed route would be a suborbital flight between the Guiana Space Centre near Kourou in French Guiana and the North European Aerospace Test Range, located in northern Sweden.REL intends ultimately to operate as a for-profit commercial enterprise which, upon the completion of development, shall manufacture Skylon vehicles for multiple international customers who shall operate their fleets directly, while being provided with support from REL.According to the company, its business plan is to sell vehicles for $1 billion each, for which it has forecast a market for at least 30 Skylons, while recurring costs of just $10 million per flight are predicted to be incurred by operators.However, several officials have emerged as proponents and advocated for the official backing of the Skylon programme.Speaking in 2009, the former UK Minister for Science and Innovation, Lord Drayson, stated of REL: During February 2009, following on from a series of extended discussions with the British National Space Centre (which later became the UK Space Agency), it was announced that a major funding agreement had been established between the British National Space Centre, ESA and REL, committing €1 million ($1.28 million) for the purpose of producing a demonstration engine for the Skylon programme by 2011.

.28 million) for the purpose of producing a demonstration engine for the Skylon programme by 2011.

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