Balancing International Stagnance and National Divergence: An Analytical Study of Contemporary Liability Issues for NewSpace Tourism Companies

Paper number

IAC-21,E7,7,9,x63382

Author

Prof. ANKIT KUMAR PADHY, India, Vellore Institute of Technology

Coauthor

Dr. Divya Tyagi, India, Gujarat National Law University

Coauthor

Mr. Amit Kumar Padhy, India, SVKM's Narsee Monjee Institute of Management Studies

Year

2021

Abstract

With rapid growth of private NewSpace tourism companies and the stagnancy of legislative
development of space treaties, with the last one coming into force in 1979, the international
legal framework regulating liability aspects of commercial space tourism endeavours has
become obsolete. Outer Space Treaty and Liability Convention impose the liability of any
damage by space activities conducted by non-governmental entities on the launching State.
Article II of the Liability Convention imposes unlimited and absolute liability for any damage
on the earth’s surface or aircraft flight. States can thereafter claim indemnification from the
private entities. It remains contentious whether small nations allowing private space launches
would be in a position to compensate huge potential losses in case of any mishap. Further,
considering the high risk associated with human spaceflights and naïve condition of private
space tourism industry, mandating unlimited liability for space tourism activities by
NewSpace companies, can prove to be a deterrent for the growth of the commercial space
tourism industry. In order to fill up such gaps left by the international space law, major space
faring nations have come up with their own domestic laws to regulate commercial space
tourism activities conducted by NewSpace companies.
The article critically analyses the efficacy of the Outer Space Treaty and Liability Convention
in dealing with the contemporary liability issues posed by the commercial space tourism
endeavours. The article thereafter analyses the national laws of major space-faring nations
vis-à-vis contemporary liability issues fundamental to private space tourism activities like
limited liability, informed consent, space insurance. It also attempts to highlight the
similarities and differences between the national approaches towards the liability issues. At
the end, the article argues that national space legislations are the only way forward to
effectively deal with the liability aspects of space tourism, attempts to provide few
suggestions to balance the aforesaid international stagnance and national divergence, and
ensure sustainable development of commercial space tourism.

Keywords: NewSpace companies, commercial space tourism, liability issues, national space
legislations

Abstract document

IAC-21,E7,7,9,x63382.brief.pdf

Manuscript document

IAC-21,E7,7,9,x63382.pdf (🔒 authorized access only).

To get the manuscript, please contact IAF Secretariat.