Who will regulate the suborbital launch industry?

This is an issue of ongoing legislation and negotiation but most likely the framework will allow the Associate Administrator for Commercial Space Transportation (AST) at the FAA to regulate the high altitude, rocket powered segment of a suborbital mission. If a system uses a first stage, aircraft segment of the mission, this part will be regulated under the usual FAA AVR regime. The AST provides a license for each launch of an ELV.

The suborbital RLVs will require a multi-flight license. See the Regulations section of the Resources page for further information. More.

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