FAA announces it aims to streamline commercial space launch licensure

WASHINGTON - The Federal Aviation Administration (FAA) concluded Fiscal Year 2024 with a record 148 licensed commercial space operations, marking a more than 30% increase from the previous year. The agency forecasts that number could more than double by FY 2028 and is initiating a new Aerospace Rulemaking Committee to update its Part 450 licensing rules for space launches and reentries.

“The FAA is seeking to update the licensing rule to foster more clarity, flexibility, efficiency, and innovation,” said FAA Associate Administrator for Commercial Space Transportation Kelvin B. Coleman. “Making timely licensing determinations without compromising public safety is a top priority.”

The Part 450 rule, first introduced to streamline regulations, aims to reduce the number of licensing approvals required for operators and minimize the need for waivers.

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The newly formed committee - which will include representatives from the commercial space industry and academia - focuses on nine topics, including flight safety, system safety, and compliance methods. The committee is expected to submit a report with recommended changes by late summer 2025, which the FAA will use to guide future rulemaking efforts. An initial meeting of the committee is scheduled for the first week of December, with the FAA inviting stakeholders to participate.

The FAA says that its Office of Commercial Space Transportation has increased its staffing to a record level of 165 employees, up from 118 at the end of FY 2022. The agency is also enhancing its internal processes and tools, including automating aspects of the license application and review process. Additionally, the FAA is expanding its outreach to the industry through more pre-application consultations, online workshops, and advisory materials.

FAA-licensed commercial space operations have grown by more than 900% over the past decade, from 14 in FY 2015 to 148 in FY 2024. In FY 2024, the FAA's Office of Commercial Space Transportation processed 49 licensing actions, including two new licenses, 10 renewals, and 37 modifications. The office also conducted 23 environmental reviews and completed 810 inspections.

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Under federal law, the FAA has up to 180 days after accepting an application to approve or deny a new launch or reentry license, and the agency has met this deadline 98% of the time.

The FAA has issued seven Part 450 licenses, including to companies such as Astra Space, ABL Space, Inversion Space, Relativity Space, SpaceX, Stratolaunch, and Varda Space.