The rocket ignited its NewtonThree engine for a few seconds but cut off mid-air due to a broken propellant line, Virgin Orbit's Chief Executive Dan Hart said in July.
The company competes with billionaire-backed ventures such as Blue Origin that are vying to usher in a new era of space tourism.
"With its thriving start-up scene, pristine beaches and vibrant nightlife, Tel Aviv was a key destination for Virgin Atlantic to establish a new route."
Sir Richard Branson, founder of Virgin Atlantic Airlines, which is represented in Israel by Maman Aviation, ended his visit to Israel with a party on Thursday evening at the ARCA complex.
Branson expressed his willingness to meet and learn from Israeli entrepreneurs operating in the field of space technology.
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