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Space Tourism: a New Exposure

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Space Tourism: a New Exposure AVIATION Space Tourism: a new exposure he planned fl ight to the moon the only current private operation sending and back scheduled for 2018 will tourists into space, has purchased PA be the fi rst manned space mission insurance for its clients. to the moon for some forty-fi ve Th e liability regime is unclear. All Tyears. Th e payload will include commercial passenger aircraft operations two space tourists, who will be are subject to several international the fi rst private individuals to orbit the conventions and prescribed liability moon. Th ey will be on board the Dragon regimes in states in which they operate. 2 spacecraft to be launched on SpaceX’s However, space liability conventions only Falcon rocket. address damage caused by space objects. Space tourism has been around for a Th e UN Outer Space Treaty addresses while, but the concept is one thing and the need to protect astronauts engaged practice quite another. Virgin Galactic back down to Earth using parachutes. in space exploration but does not defi ne came about in October 2004 when Th e fi rst test fl ight was in April 2015, the astronauts or refer to space tourists. SpaceShipOne delivered the weight of fi rst successful vertical landing was in United States’ legislation has three three people to space and back via a November 2015 and the latest test fl ight categories of people on board space privately-funded vehicle. Since then, in September 2016 tested the capsule’s vehicles – crew, government astronauts people from more than fi fty nations emergency escape from the booster. and space fl ight participants (SFP). Th e have signed up with Virgin Galactic, Following a further test, the target for the Commercial Space Launch Act (CSLA) paying US$250,000 to fl y into space fi rst paying customers is 2018. uses the term SFP rather than passenger on SpaceShipTwo (SS2). Despite the Last, and by no means least, founded to avoid confusion with use of passenger long lead-in time, the fi rst commercial in 1998, Space Adventures is the fi rst in common law and aviation-related law. passenger fl ight is still pending – it private space fl ight company, sending its Th e amended CSLA (CSLCA 2014) now suffered a setback when SS2 was lost clients via the Russian Soyuz spacecraft to provides for cross-party waivers in respect during an October 2014 test fl ight. Virgin the International Space Station on eight of SFP, which was not addressed in earlier Galactic is hopeful of its fi rst manned fl ight occasions so far. legislation. this year. How is the insurance community Th e insurance market is certainly up Virgin Galactic is not unique in hitting responding to this new and exciting to the challenge and the aviation, PA bumps in the road towards private space exposure? Is this an aviation risk or a space and space markets will no doubt vie for fl ight. XCOR, founded in 2008, expected risk? Space insurance is very technical and a piece of the action. But there is still a to fl y one passenger accompanied by most underwriters employ space engineers great deal of uncertainty, not only in the one fl ight crew in the Lynx Mark 1. A to provide expert knowledge on the launch performance of commercial space fl ight conventional take-off and landing aircraft vehicles and the payloads/satellites. operators but also in the status of the space was to propel the craft 60–100km into However, this knowledge does not extend tourist in terms of government regulations space but the project is on hold for now. to passenger liability for space tourists, and international law. ● Another of the high-profi le space which many brokers/underwriters argue tourism companies is Blue Origin, which is more akin to aircraft passenger liability. Simon Abbott, ACII will use a conventional vertical take-off In addition, operators’ customers are Underwriting Executive rocket. Th e capsule, seating six astronauts, purchasing very expensive tickets, giving Global Aerospace separates from the launch vehicle to an unusual risk profi le coupled with the Chair, IIL Aviation Committee coast quietly into space before dropping dangers of space fl ight. Space Adventures, 14 14 The London Journal 2017 Space Tourism__CII Supplements 14 16/05/2017 10:28.
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