Commercial Space Launches: FAA Needs Continued Planning and	 
Monitoring to Oversee the Safety of the Emerging Space Tourism	 
Industry (20-OCT-06, GAO-07-16).				 
                                                                 
In 2004, the successful launches of SpaceShipOne raised the	 
possibility of an emerging U.S. commercial space tourism industry
that would make human space travel available to the public. The  
Federal Aviation Administration (FAA), which has responsibility  
for safety and industry promotion, licenses operations of	 
commercial space launches and launch sites. To allow the industry
to grow, Congress prohibited FAA from regulating crew and	 
passenger safety before 2012, except in response to high-risk	 
events. GAO evaluated FAA's (1) safety oversight of commercial	 
space launches, (2) response to emerging issues, and (3)	 
challenges in regulating and promoting space tourism and	 
responding to competitive issues affecting the industry. GAO	 
reviewed FAA's applicable safety oversight processes and	 
interviewed federal and industry officials.			 
-------------------------Indexing Terms------------------------- 
REPORTNUM:   GAO-07-16						        
    ACCNO:   A62445						        
  TITLE:     Commercial Space Launches: FAA Needs Continued Planning  
and Monitoring to Oversee the Safety of the Emerging Space	 
Tourism Industry						 
     DATE:   10/20/2006 
  SUBJECT:   Aerospace industry 				 
	     Federal regulations				 
	     Industrial safety					 
	     Internal controls					 
	     Program evaluation 				 
	     Program management 				 
	     Safety regulation					 
	     Safety standards					 
	     Strategic planning 				 
	     Transportation safety				 
	     Civilian space operations				 
	     Government agency oversight			 
	     Space shuttles					 
	     Tourism						 

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GAO-07-16

www.gao.gov/cgi-bin/getrpt?GAO-07-16.

To view the full product, including the scope

and methodology, click on the link above.

For more information, contact Gerald L. Dillingham at (202) 512-2834 or
[email protected].

Highlights of GAO-07-16, a report to the Ranking Democratic Member,
Committee on Transportation and Infrastructure, House of Representatives

October 2006

COMMERCIAL SPACE LAUNCHES

FAA Needs Continued Planning and Monitoring to Oversee the Safety of the
Emerging Space Tourism Industry

In 2004, the successful launches of SpaceShipOne raised the possibility of
an emerging U.S. commercial space tourism industry that would make human
space travel available to the public. The Federal Aviation Administration
(FAA), which has responsibility for safety and industry promotion,
licenses operations of commercial space launches and launch sites. To
allow the industry to grow, Congress prohibited FAA from regulating crew
and passenger safety before 2012, except in response to high-risk events.
GAO evaluated FAA's (1) safety oversight of commercial space launches, (2)
response to emerging issues, and (3) challenges in regulating and
promoting space tourism and responding to competitive issues affecting the
industry. GAO reviewed FAA's applicable safety oversight processes and
interviewed federal and industry officials.

What GAO Recommends

If DOT's commissioned report on dual safety and promotion roles does not
fully address the potential for a conflict of interest, GAO suggests that
Congress revisit FAA's promotional role and decide whether it should be
eliminated. GAO recommends that FAA assess its future safety oversight
resource needs and identify the circumstances that would trigger passenger
safety regulation before 2012. Relevant federal agencies reviewed the
draft and DOT agreed withtherecommendations.

Several measures indicate that FAA has provided a reasonable level of
safety oversight for commercial launches. For example, none of the 179
commercial launches that FAA licensed over the past 17 years resulted in
fatalities, serious injuries, or significant property damage. However, FAA
shared safety oversight with the Department of Defense (DOD) for most of
these launches because they took place at federal launch sites operated by
DOD. In addition, FAA's licensing activities incorporate a system safety
process, which GAO recognizes as effective in identifying and mitigating
risks. GAO's analysis of FAA records indicates that the agency is
appropriately applying management controls in its licensing activities,
thereby helping to ensure that the licensees meet FAA's safety
requirements.

In response to emerging issues in the commercial space launch industry,
such as the potential development of space tourism, FAA has developed
safety regulations and training for agency employees. The industry has
raised concerns about the costs of complying with regulations and about
the flexibility of the regulations to accommodate launch differences.
However, FAA believes it has minimized compliance costs by basing its
regulations on common safety standards and has allowed for flexibility by
taking a case-by-case approach to licensing and by providing waivers in
certain circumstances.

FAA faces several challenges and competitive issues in regulating and
promoting space tourism. For example, FAA expects to need more experienced
staff for safety oversight as new technologies for space tourism evolve,
but has not estimated its future resource needs. Other challenges for FAA
include determining the specific circumstances under which it would
regulate space flight crew and passenger safety before 2012 and balancing
its responsibilities for safety and promotion to avoid conflicts.
Recognizing the potential conflict in the oversight of commercial space
launches, Congress required the Department of Transportation (DOT) to
commission a report by December 2008 on several issues, including whether
the promotion of human space flight should be separate from the regulation
of such activity. In addition, U.S. commercial space launch industry
representatives said that they face competitive issues concerning high
launch costs and export controls that can affect their ability to sell
services overseas. The federal government has provided support to the
industry to help lower launch costs.
*** End of document. ***