The deal, unlocking a more efficient path to space for reusable Falcon 9, was signed last year by Deputy PM Cooper; meanwhile, Starship’s trajectory from Texas to orbit requiring it to pass over Caribbean airspaces has raised concerns after three test failures scattered debris across the region.

When SpaceX was negotiating a deal with the Bahamas last year to allow its Falcon 9 rocket boosters to land within the island nation’s territory, Elon Musk’s company offered a sweetener: complimentary Starlink Internet terminals for the country’s defence vessels, according to three people familiar with the matter.

The rocket landing deal, unlocking a more efficient path to space for SpaceX’s reusable Falcon 9, was then signed in February last year by Deputy Prime Minister Chester Cooper, sources confirmed.

Reuters found no evidence that Mr. Cooper broke any laws or regulations in striking the deal with SpaceX, but the people said the quick approval created tension within the Bahamian government.

By this April, two months after the first and only Falcon 9 booster landed off the nation’s Exuma coast, the Bahamas announced it had put the landing agreement on hold. The government said publicly it wanted a post-launch investigation after the explosion in March of a different SpaceX rocket, Starship, whose mid-flight failure sent hundreds of pieces of debris washing ashore on Bahamian islands. But the suspension was the result of the blindsided officials’ frustration as well, two of the people sources said.

“While no toxic materials were detected and no significant environmental impact was reported, the incident prompted a re-evaluation of our engagement with SpaceX,” Mr. Cooper, also the country’s tourism chief, told Reuters through a spokesperson.

Several setbacks

SpaceX’s setbacks in the Bahamas offer a rare glimpse into its fragile diplomacy with foreign governments. As the company races to expand its dominant space business, it must navigate the geopolitical complexities of a high-stakes, global operation involving advanced satellites and orbital-class rockets – some prone to explosive failure – flying over or near sovereign territories.

These political risks were laid bare last month when Mexican President Claudia Sheinbaum said her government was considering taking legal action against SpaceX over “contamination” related to Starship launches from Starbase, the company’s rocket site in Texas.

Responding to Sheinbaum on X, SpaceX said its teams have been hindered from recovering Starship debris that landed in Mexican territory.

Mission to Mars

SpaceX is pursuing aggressive global expansion as Mr. Musk, its CEO, has become a polarising figure on the world stage, especially following high-profile clashes with several governments during his time advising President Donald Trump.

Starlink, SpaceX’s fast-growing satellite internet venture, is a central source of revenue funding Mr. Musk’s vision to send human missions to Mars aboard Starship. But to scale globally, SpaceX must continue to win the trust of foreign governments with which it wishes to operate the service, as rivals from China and companies like Jeff Bezos’ Amazon ramp up competing satellite networks.

According to SpaceX’s orbital calculations, the Falcon 9 rocket can carry heavier payloads and more satellites to space if its booster is allowed to land in Bahamian territory. Meanwhile, Starship’s trajectory from Texas to orbit requires it to pass over Caribbean airspaces, exposing the region to potential debris if the rocket fails, as it has in all three of its test flights this year.

SpaceX’s deal with the Bahamas, the government said, also included a $1 million donation to the University of Bahamas, where the company pledged to conduct quarterly seminars on space and engineering topics. The company must pay a $100,000 fee per landing, pursuant to the country’s space regulations it enacted in preparation for the SpaceX activities. While SpaceX made steep investments for an agreement prone to political entanglement, the Falcon 9 booster landings could resume later this summer, two Bahamian officials said.

Holding things up is the government’s examination of a SpaceX report on the booster landing’s environmental impact, as well as talks among officials to amend the country’s space reentry regulations to codify a better approval process and environmental review requirements, one of the sources said.

Arana Pyfrom, assistant director at the Bahamas’ Department of Environmental Planning and Protection, said SpaceX’s presence in the country is “polarising”. Many Bahamians, he said, have voiced concerns to the government about their safety from Starship debris and pollution to the country’s waters. “I have no strong dislike for the exploration of space, but I do have concerns about the sovereignty of my nation’s airspace,” Pyfrom said. “The Starship explosion just strengthened opposition to make sure we could answer all these questions.”

Starship exploded about nine and a half minutes into flight on March 6 after launching from Texas, in what the company said was likely the result of an automatic self-destruct command triggered by an issue in its engine section. It was the second consecutive test failure after a similar explosion in January.

Subscribe to our newsletter!

* Your mail address will be fully secure . We don’t share!