The Federal Aviation Administration (FAA) is proposing over $600,000 in civil penalties against SpaceX for alleged violations during two 2023 launches. The FAA claims SpaceX failed to adhere to licensing requirements, proceeding with launches despite these unmet obligations.
The first incident occurred on June 18, 2023, involving the launch of the Indonesian communications satellite Satria aboard a Falcon 9 rocket. The FAA alleges SpaceX submitted a request to modify its communications plan, a critical component of its launch license for Cape Canaveral Space Force Station, just a month prior. This revision included adding a new launch control room and eliminating a mandatory two-hour pre-launch readiness check. According to the FAA, SpaceX proceeded with the launch using the new control room and without the readiness check, despite neither modification being approved. The FAA is seeking $175,000 for each of these alleged violations.
The second incident, on July 28, 2023, involved a Falcon Heavy rocket carrying the EchoStar JUPITER 3 Broadband Communications Satellite. The FAA asserts SpaceX utilized an unapproved fuel farm for the rocket’s propellant, resulting in a proposed penalty of $283,009.
“Safety drives everything we do at the FAA, including a legal responsibility for the safety oversight of companies with commercial space transportation licenses,” stated FAA Chief Counsel Marc Nichols. “Failure of a company to comply with the safety requirements will result in consequences.” These proposed fines are unrelated to SpaceX’s Starship program, which has faced separate regulatory challenges.
This isn’t SpaceX’s first encounter with FAA regulations. In February 2023, the agency proposed a $175,000 fine for allegedly failing to submit required launch collision analysis trajectory data before an August 2022 Falcon 9 launch. In 2022, SpaceX received an $18,475 fine following a severe employee injury during a Raptor V2 engine test. Furthermore, the Environmental Protection Agency is seeking a fine of nearly $150,000 for alleged illegal dumping of pollutants into a Texas waterway without a permit.
While substantial, these proposed penalties represent a small fraction of SpaceX’s revenue. With a Falcon 9 launch costing approximately $67 million, the fines, if enforced, equate to less than half a percent of the cost of two launches.
In conclusion, SpaceX is facing significant fines from the FAA for alleged safety violations during two 2023 launches. These incidents highlight the importance of adhering to regulatory requirements in the commercial space industry and underscore the FAA’s commitment to ensuring safety in space operations. The financial impact of these fines, however, remains relatively minor for SpaceX.
