At the same time, some launch companies are  developing hybrid launch systems, which contain elements of both  aircraft and rocket-powered vehicles. FAA’s Office of Aviation Safety (AVS) oversees civil aviation activities in  the United States. Stakeholders Identified Potential Uses for Space Support Vehicles, but the Size of the Market Is Unclear

		Industry Stakeholders Discussed Uses for Space Support Vehicles— Spaceflight Participant Training and Research

			Spaceflight Participant Training

Stakeholders identified spaceflight participant training as one potential  use for space support vehicles. Stakeholders explained that factors that can be  simulated in high performance jets but not through other means include  the stress of a confined environment and exposure to the physiological  and psychological effects of spaceflight. See  figure 2 for examples of space support vehicles, including high- performance jets (on left) and the modified Boeing 727 (on right). Microgravity research uses reduced gravity to understand how  objects or people will react in reduced gravity environments (such as  orbit). Data on the Size of the Space Support Market Is Virtually Non Existent Spaceflight Participant Training

It is difficult to determine the size of the market for the use of space  support vehicles for training because we have found no publicly available  studies on the size of the spaceflight participant training market, and  companies we interviewed told us they have not conducted their own  market analysis. FAA’s Current Statutory and Regulatory Framework Limits Market Development

		FAA’s Standard Aircraft Certification Process Is Intended to Ensure Passenger Safety; However, Companies Said They Face Challenges Because the Process is Lengthy and Costly

Two of the companies that we interviewed obtained standard aircraft  certification from FAA for aircraft that could be classified as space support  vehicles. In addition, FAA’s standard aircraft-certification process is not well suited  for the types of aircraft that space support companies would like to use. The process is not designed for single-production  aircraft like those launch companies are developing or retired military jets  that companies would like to use for spaceflight participant training. Companies Are Prohibited from Receiving Compensation under Experimental Certificates

AVS allows certain aircraft to fly under an experimental certificate, but  companies are prohibited from operating these aircraft for carrying  persons or property for compensation and hire—meaning companies  cannot receive money for carrying passengers or cargo. In addition, some of the companies we interviewed have training  operations in other countries because they are not allowed to operate  specific aircraft in the United States under current laws and regulations. When issuing experimental permits, AST’s process focuses  on minimizing risks to ensure the safety of third parties. Stakeholders Have Mixed Views on the Appropriate Approach for Regulating Space Support Vehicles; FAA Has Taken Some Steps to Assess Its Regulatory Framework Some Options for Regulating Space Support Vehicles Would Require Statutory or Regulatory Changes

Through our discussions with FAA and interviews with stakeholders, we  identified potential options for regulating space support vehicles (see  table 1). Further, the Commercial Spaceflight Federation (CSF) has been  discussing with its membership how space support vehicles should be  regulated. FAA has  taken steps to assess the licensing and permitting process for hybrid  launch vehicles; however, it has not assessed whether space support  vehicles are needed to meet the potential research, training, and other  needs of the commercial space transportation industry, and if it should  propose changes that would accommodate all aircraft that could be used  as space support vehicles. FAA officials said that their views on non-launch and non-reentry  operations of hybrid launch vehicles will be expressed in their report that  was mandated under the U.S. Commercial Space Launch  Competitiveness Act. While some companies are using certified aircraft to provide  space support services such as spaceflight participant training, other  companies would like to use vehicles such as retired military jets and  hybrid launch vehicles to provide such services. FAA’s current regulatory  framework applies to aircraft; however, the aircraft that some companies  would like to use to provide space support services do not fit into this  framework. Since FAA has not conducted a comprehensive assessment  of how space support activities fit under its aviation or commercial space  transportation regulatory regimes, officials from some U.S. companies  told us they are delaying investments in space support vehicles. As a  result, it is uncertain if companies will be able to use space support  vehicles for potentially useful spaceflight participant training and research  services to meet the future needs of the commercial space-transportation  industry. Recommendation

To respond to changes in the aviation and commercial space- transportation industries, we recommend that the Secretary of  Transportation direct the FAA Administrator to fully examine and  document whether the current regulatory framework is appropriate for  aircraft that could be considered space support vehicles, and if not,  suggest legislation or develop regulatory changes, or both, as applicable. Agency Comments

We provided a draft of this report to the Department of Transportation for  review and comment.
Why GAO Did This Study

As the commercial space transportation industry has grown significantly in the last decade, a related industry has emerged that plans to complement the commercial space industry by using vehicles called space support vehicles to conduct space-related activities, but not launch into space.
The U.S. Commercial Space Launch Competitiveness Act of 2015 includes a provision for GAO to review the uses for space support vehicles and services and any barriers to their use. This report addresses stakeholder views on (1) potential uses for space support vehicles, (2) challenges that companies may face when attempting to use these vehicles, and (3) how these vehicles should be regulated. GAO reviewed prior GAO and industry reports, relevant laws and regulations, and interviewed officials on two proposals for regulating space support vehicles. GAO interviewed officials at FAA and the National Aeronautics and Space Administration and 37 legal experts and stakeholders from industry organizations, launch companies, space support companies, and spaceports—identified by agency and industry officials.

What GAO Found

Company officials GAO interviewed identified potential uses for “space support vehicles”—which include a variety of aircraft from high-performance jets to balloons and the aircraft portion of a hybrid launch systems (a vehicle that contains elements of both an aircraft and a rocket-powered launch vehicle)—but the size of the market for these uses is unclear. Company officials said they plan to use space support vehicles to train spaceflight participants and to conduct research in reduced gravity environments. For example, some company officials said they would like to use high-performance jets to train future spaceflight participants by exposing them to physiological and psychological effects encountered in spaceflight. Other company officials said they would like to use space support vehicles to research how objects or people react in reduced gravity environments. It is difficult to know the size of the market for spaceflight training and research as GAO found no studies on these markets. However, stakeholders said they expect interest in research to increase.
Some company officials said the Federal Aviation Administration's (FAA) regulatory framework presents a market challenge because companies cannot get FAA approval to use the aircraft they would like to use to carry passengers or cargo for compensation, thus limiting their ability to operate in the market. FAA's Office of Aviation Safety (AVS) regulates aircraft that companies would like to use as space support vehicles by issuing standard and experimental certificates that help ensure safety. While officials from two companies GAO interviewed have received standard aircraft certification for their space support vehicle, others said the standard certification process is lengthy and not designed for the type of vehicles they would like to use, such as unique, single-production aircraft or retired military jets. In addition, FAA regulations do not allow companies to receive compensation for carrying people or property on an aircraft operating under an experimental certificate. As a result, some of the companies we interviewed have training operations in other countries where they can receive payment for the activity. Further, FAA's Office of Commercial Space Transportation (AST)—the office that regulates commercial space activities—is only authorized to regulate commercial space activities, such as launches, focusing on the safety of third parties. According to FAA officials, a statutory or regulatory change would be needed to allow companies to use space support vehicles that do not meet AVS's standard certification requirements for compensation.
Stakeholders GAO interviewed have mixed views on how FAA should regulate space support vehicles; some companies believe the current regulatory approach is appropriate, while others believe the system should be changed in the face of new technology and commercial space development. While FAA has taken steps to assess the licensing and permitting process for hybrid launch vehicles, it has not assessed whether space support vehicles are needed and if it should propose changes that would accommodate all aircraft that could be used as space support vehicles. Thus, some U.S. company officials said they are delaying investments in space support vehicles, and therefore, it is uncertain if they will be able to use them to meet the future needs of the commercial space transportation industry.

What GAO Recommends

The Secretary of the Department of Transportation (DOT) should direct the FAA Administrator to fully examine and document whether the FAA's current regulatory framework is appropriate for space support vehicles and, if not, suggest legislative or regulatory changes, or both, as applicable. DOT provided technical comments; however, it did not comment on the recommendation at this time.