UPHAM, New Mexico USA -- Technicians corrected a problem delaying the first commercial launch from the state spaceport only to see the flight fail within minutes of liftoff.

Failure of a transponder early this morning scrubbed the original 7:30 a.m. launch. 

The transponder, which sent precise location data to controllers at nearby White Sands Missile Range, was repair and reinstalled by early afternoon.

SpaceLoft X-L cleared launch rail cleanly.

Launch crew tracked rocket from control center.

First commercial launch from state spaceport looked good.

The 20-foot SpaceLoft X-L rocket took off at 2:14 p.m. for what was to be a 13-minute flight topping out at 70 miles above the earth and ending at White Sands.  At about 40,000 feet the rocket was reported to be off course and corkscrewing.

WSMR tracked the falling missile and reported it landed within 1 1/4 miles of the launchpad.

UP Aerospace Inc. built the rocket and gathered 50 experiments and commercial packages for its payload.  Student research projects and the ashes of a customer’s late husband were among the items on board.

It was not immediately clear where the rocket landed or what might have caused its failure.

After the transponder failed, technicians spent several hours feverishly working to replace it.  The launch itself appeared flawless with the rocket clearing its tower and climbing straight into the desert sky.

There was no immediate indication of what caused the failure.

Regardless, state Economic Development Secretary Rick Homans, who pressed the launch button, said the day was not a complete loss.

“A lot of things about today I'm thrilled about,” Homans said.  “We had a launch from the spaceport; we had all systems, all controls were working.

“We had a failure at some point at 40,000 feet, and the rocket didn't make it into space, but on all other fronts it’s been a great day.”

Despite the airborne failure, Spaceport America and UP Aerospace showed they can launch a rocket safely.  Officials said that will help build credibility with the Federal Aviation Administration as the facility seeks FAA certification as a spaceport.

 Video showing anomoly of the flight: