The Government’s New Regulations On Winding Up Petitions To Support Businesses Impacted By Covid-19 While Returning Back To The Pre-Pandemic Norm

The Amendment of Schedule 10 Regulations 2021 to the Corporate Insolvency and Governance Act 2020 is set to ease the restrictions over winding up petitions against a corporate debtor, taking effect on 1 October 2021 and set to last until 31 March 2022.

As a result of the Covid-19 pandemic, the Corporate Insolvency and Governance Act 2020 was put in place to restrict a creditor’s ability to present a statutory demand and winding up petition against a corporate debtor providing much-needed leeway for struggling businesses against the threat of winding up petitions.

Now, from 1 October 2021, those temporary restrictions – which were set to expire on 30 September 2021 – are being amended with new temporary regulations that are set to last until 31 March 2022. These regulations mean that a creditor may not present a petition for winding up unless the 4 conditions below are met:

Condition A is that the creditor is owed a debt by the company whose amount is liquidated, which has fallen due for payment, and which is not an excluded debt;

Condition B is that the debtor has been given written notice of the debt and an opportunity to provide repayment proposals for that debt;

Condition C is that at end of the period of 21 days, beginning with the day on which Condition B was met, the company has not made a proposal for the payment of the debt that is to the creditor’s satisfaction;

Condition D is that the debt is over £10,000.

In addition to these conditions, if the debtor makes proposals for payment after a creditor seeks a winding up order, the creditor must then give the court its reasons why the debtor’s proposals were unsatisfactory. The court will then review these reasons to conclude whether it can exercise its discretion to wind up a company.

Nevertheless, for commercial rent arrears built up during the pandemic, commercial landlords continue to be prevented from presenting winding up petitions onto them unless they can show that the reason for non-payment is unrelated to the pandemic.

The Schedule 10 Regulations are a reaction to the easing of pandemic restrictions with the winding up process slowly returning to its normal pre-pandemic order while continuing to support businesses still suffering from the economic fallout from the pandemic.

As well as this, these amendments are set to work alongside the proposed legislation in relation to the recently announced rent arbitration scheme. This scheme is set to apply to commercial tenants who have been affected by Covid-19 business closures and is set to encourage consensual agreement rather than continual court proceedings.

© Whitestone Chambers

Whitestone Looks at Consumer Law Reform

Following numerous consultations, the UK Government plans to reform consumer law. These plans consist of giving regulators powers to impose fines of up to 10% of global turnover in the case of a breach of consumer legislations. Such reform – if actioned – is predicted to ‘toughen’ the regulatory environment in the consumer business sector.[1]

Problems lie upon whether all this talk of reform will be actioned, or whether weak enforcement from the consumer and sectoral regulators will leave this reform redundant. If a regulating authority, such as the Competition and Markets Authority (CMA) or the Financial Conduct Authority (FCA) believe a business to be infringing consumer law, they have no powers to compel the business to change its behaviour – such authorities can merely advise, and hope that businesses choose to act in accordance.

Despite courts withholding the power to order businesses to make such changes, the process of taking businesses to court is “lengthy, complex and costly” with no financial sanctions for civil breaches of consumer protection law, even if the business loses the case as seen in 2008 where the Office of Fair Trading took estate agent Foxtons to court over unfair provisions in its agreements with consumer landlords.[2] Currently, the CMA also has to go to court if it considers a business to have failed to comply with its investigatory powers under consumer law.[3]

These detrimental inconveniences have ultimately left regulators not wanting to take businesses to court, but instead attempting to negotiate a settlement with businesses. Such settlements, however, are not directly enforceable. In these circumstances, the regulators have no other option but to bring court proceedings against breaching businesses, leaving them at a major setback.

Notwithstanding these issues, the proposed reform promises to correlate with the powers of the CMA and other regulators in order to enforce the law in this area. Rather than having to go to court, regulators will have the powers to investigate and reach their own decision which will be immediately binding on the business in question, including an order to cease the illegal behaviour or a monetary penalty of up to 10% of the businesses global turnover to not only punish offenders but deter other businesses from engaging in such conduct. Furthermore, if the regulator believe that a business has failed to cooperate or provide sufficient information whilst under investigation, it will be entitled to impose a civil penalty of up to 1% of annual turnover, with an additional daily penalty of up to 5% of daily turnover in the case of continued non-compliance. Businesses can, nonetheless, appeal against such decisions by regulators.

These reforms will remove the necessity of court proceedings against breaching businesses by strengthening the power of the regulators, provided the Government legislates to implement this new regime.

When these reforms will ultimately come into force is unknown, though the deadline for responding to the consultation is 1 October 2021, preceding Government analysis of – and response to – any feedback and finding Parliamentary time for legislation to enact the reforms. Realistically, we think that the earliest the reform will be brought into force would now be 2023.


[1] https://www.lexology.com/library/detail.aspx?g=4b421dbf-c2ef-4f16-bac8-156695ea7347&utm_source=Lexology+Daily+Newsfeed&utm_medium=HTML+email+-+Body+-+General+section&utm_campaign=IPBA+subscriber+daily+feed&utm_content=Lexology+Daily+Newsfeed+2021-08-24&utm_term=

[2] https://www.gov.uk/cma-cases/foxtons-hidden-fees-in-lettings-agreements-with-consumer-landlords

[3] https://www.gov.uk/government/news/norton-extends-refund-rights-after-cma-action

Surveillance by the State – Data Collection and Human Rights?

The recent uprising and overtaking of the Afghanistan government by the Taliban has caused human right concerns to be pushed to the forefront of the world’s eyes and mind.. Data collection and storage may have devastating consequences for the citizens of Afghanistan.

Following Donald Trump’s deal with Taliban officials, Joe Biden still plans to withdraw all American Troops by 31 August with the UK aiming to remove troops but with no fixed date to help prevent a “humanitarian crisis”.[1] The Taliban has suggested the data will be held for the aim of reducing voter and welfare fraud with new surveillance measures due to be implemented, including, digital identity cards for Afghan citizens and the use of biometric information – fingerprinting, iris scans and facial recognition; these potentially supporting Edward Snowden’s 2013 suggestion that surveillance is a mere “keystroke away from totalitarianism”.[2]

Protecting Afghan Citizens:

Human Rights First – a human rights charity – has released a guide of how to avoid the misuse of biometric data and erasing your digital footprint for Afghan citizens;[3] this could be critical for survival, with some individuals now being persecuted for posting anti-Taliban content.[4]

The Human Rights Argument:

This, however is not an alien technology. Traditionally viewed ‘democratic’ societies like the US or UK use these forms of surveillance to protect their own citizens, but to what extent should this power be allowed to exist?

Subject to Article 8 of the European Convention on Human Rights, as  expressed in the Human Rights Act 1998,[5] is that

“Everyone has the right to respect for his private and family life, his home or his correspondence.”

This right is not to be interfered with by the state, however, there are the lawful excuses of necessity for reasons of “national security” and “public safety” amongst others. But how can a matter of public safety be accurately defined? In a democratic society the technologies may be used to prevent extremism or potential terror threats. In Afghanistan the same measures are being used to hunt-down citizens who do not promote the same values as the Taliban –which leads to the question could the same argument be used? Taliban officials may view Western ideals of democracy as a threat national security, therefore their actions would be justified as they were acting “for the prevention of disorder and crime”.

Solutions:

In the paperless age, we all should become more concerned with how governments are handling our data. Gone are the days of in-person destruction of files, with more advanced systems required to ensure data is adequately protected. Remote data destruction is a necessity so that devices are no longer accessible to those who would misuse private information. As the coalition forces withdraw from Afghanistan, these protections should have been enforced to prevent the theft of data leading to potential loss of life.


[1] Faulker, ‘Afghanistan: PM to press Biden to delay Kabul withdrawal’ https://www.bbc.co.uk/news/uk-58301269 [Accessed: 23 August 2021]

[2] Naughton, “Beware state surveillance of your lives – governments can change for the worse” Beware state surveillance of your lives – governments can change for the worse | John Naughton | The Guardian [Accessed: 23 August 2021].

[3] Human Rights First, https://www.evacuateourallies.org/resources [Accessed: 23 August 2021].

[4] Lockhurst, “Taliban ‘carrying out door-to-door manhunt’” https://www.bbc.co.uk/news/live/world-asia-58219963 [Accessed: 23 August 2021].

[5] Human Rights Act 1998, Schedule 1: The Articles.

Warren v DSG: the end of data breach litigation for claimant firms?

 

A recent decision made in the High Court may significantly limit data breach litigation by claimant firms.

 

When a business suffers a data breach involving the personal data of its customers, claimant firms seek to sign up affected customers, issuing multiple claims for damages. Such claims are often for breach of the UK GDPR, breach of confidence, misuse of private information and negligence backed by confidential fee arrangements and After the Event (“ATE) insurance. Due to the perceived complexity of data claims and cost exposure created by ATE premiums, claimant firms have opted to create their own business model fuelled by out-of-court settlements.

 

In the case of Warren v DSG,[1] the defendants – Currys PC World (“DSG”) – suffered an external attack which resulted in the compromise of c. 10 million customer records, and a £500,000 fine by the UK Information Commissioner’s Office for violating the seventh data protection principle under the Data Protection Act 1998 (“DPA”) by not implementing appropriate security measures.

 

The claimant is one of these customers, who sought £5,000 for breach of the DPA (now replaced by the UK GDPR), breach of confidence, misuse of private information and negligence. Following claims for breach of confidence, misuse of private information and negligence being dismissed, the claimants were left with only a UK GDPR claim.

 

Such claims were dismissed for the following reasons: (1) all of the causes of action required some positive wrongful action to be taken, and there was no positive wrongful action in such circumstances as DSG was the passive victim of an attack, thus had not intentionally facilitated the data breach; (2) such actions do not impose any form of duty on DSG; and (3) there was no clinically recognised psychiatric harm in order to find a claim in negligence.[2]

 

The decision in Warren v DSG will have now considerably simplify the defence of similar claims, as well as making it increasingly difficult for claimant firms to recover ATE premiums in such cases due to the lack of a privacy claim, undermining the business model of claimant firms.

 

The judgement can be read here: https://www.bailii.org/ew/cases/EWHC/QB/2021/2168.html

 

[1] Darren Lee Warren v DSG Retail Limited [2021] EWHC 2168 (QB)

[2] https://www.shoosmiths.co.uk/insights/articles/data-breach-litigation-tap-brakes-end-road-claimant-firms

New Government Regulations Predict First UK Space Launch to Take Place Next Year

 

Following the Department of Transports (DfTs) recently introduced regulations, space flights and satellite launches are now permitted to take place in the UK, with the first expected next year. This means that people will be able to visit space for a holiday!

This UK launch will mark the first ever launch from any European country, as many European companies currently launch from a site in French Guiana, South America.

DfT believe that this new regulatory framework has “a potential £4bn of market opportunities over the next decade”,[1] following plans to build spaceport sites across the UK, including in Scotland and Cornwall. The UK is hoped to become Europe’s most attractive destination for commercial spaceflight activities. DfT have also claimed that space tourism trips and hypersonic flights will eventually launch from the UK. Furthermore, the industry intends to launch satellites to improve satnav systems and boost the monitoring of weather patterns and climate change.

The government have agreed to provide £31.5 million to help set up vertical launch services from Scotland, and a further £7.35 million to Spaceport in order to support a horizontal launch in Cornwall. Business plans will also be made for suborbital flights from airports in Machrihanish, Snowdonia and Cornwall. On top of this, another £99 million is to be invested in a new National Satellite Test Facility in Harwell, and £60 million towards the development of a revolutionary hybrid air-breathing rocket engine.[2]

The first UK Pathfinder launch – funded by UKSA – will take place in 2022, seeing Lockheed Martin team up with ABL Systems to launch from SaxaVord Spaceport in Unst.

Transport Secretary, Grant Shapps, had boasted that “we stand on the cusp of the new commercial space age”, adding that “this is the blast-off moment for the UK’s thriving space industry”. Shapps acknowledged the government’s commitment towards this sector, which will ultimately result in the creation of new jobs and economic benefits across UK communities and organisations.

The UK space industry is being regulated by the Civil Aviation Authority.

[1] https://www.msn.com/en-gb/news/uknews/first-uk-space-launch-due-next-year-as-new-rules-come-into-force/ar-AAMHAaN?ocid=winp1taskbar

[2] https://news.sky.com/story/first-uk-space-launch-due-next-year-as-government-introduces-new-rules-12367082

Hijazi v Yaxley-Lennon

 

The well-known political Activist known as Tommy Robinson loses High Court Libel Trial

On 25 October 2018, a short innocuous altercation between two pupils led to a libel action in the High Court.

Both parties to the ‘fight’ were attending Almondbury Community School, Huddersfield. The Claimant, Jamal Hijazi, was 15, and the attacker, Bailey McLaren, was 16. The incident was recorded by another pupil, with the video showing Bailey approach Jamal and call him out multiple times, while Jamal ignored him. The attacker then grabs Jamal by the throat, forces him to the ground, and pours a bottle of water over his face whilst shouting “I’ll drown you”. Upon releasing him, the Jamal simply stands up and walks away. At no point did he submit any form of violence or retaliation. The recording begins before the attack, implying an element of premeditation, as the student must have known what was about to occur.

This recording was shared amongst pupils at the school, and soon went viral. Upon the Claimant’s parents seeing this video, they reported the incident to the police, with the belief that this was a racially motivated attack on the victim who was a Syrian refugee and Muslim. The Claimant, now 18, and his family migrated to the UK in 2016 after being granted refugee settlement status under the Syrian vulnerable person resettlement programme. When initially joining the school, his English was assessed as very poor. Jamal is said to have been subject to bullying throughout his time at Almondbury, and although he was unable to clearly translate most of the comments made, the Police had been involved following previous attacks against his race and religion.

On the morning of the incident, Jamal had swore at Bailey due to the belief he had deliberately stepped on his coat. As a result, Bailey shouted at Jamal, grabbing him by the throat. When the teacher intercepted the pair, Bailey threatened to kill Jamal, who responded “F off”, and was then met with “I will stab you with a knife”. The attacker claims that the Claimant called him a *white bastard* and laughed at his stutter, triggering the incident. The attacker nonetheless accepted a police caution for common assault.

The Defendant in this case is a well-known public figure, Tommy Robinson, who used his platform to speak out on the matter, making two separate videos stating his views on the incident. The first states how the Claimant – along with a group of Muslim girls – was involved in ‘beating up’ a young girl, which has not been covered by the media, despite the family of the young girl making them aware of the incident. He argues that Jamal has been falsely labelled a victim by the media, simply because he is Syrian. The second video reiterates how there is no valid reason for the media to cover one incident and not the other, and for the school to expel the Claimant’s attacker but not the Muslim attackers of the young girl, noting the alleged levels of violence from Muslims present when he was at school himself. The school refused to report the incident with the young girl to the police.

The Claimant commenced his claim for libel on 15 May 2019. The Defendant has admitted that the requirements of s 1 Defamation Act 2013 are met – causing serious harm to reputation. Originally, the Defendant advanced a defence of truth to the Claimant’s claim under s 2 of the 2013 Act, subsequently applying to add a further defence of public interest under s 4 which was refused. A number of incidents of alleged physical and verbal aggression demonstrated by the Claimant towards pupils were relied upon by the Defendant in support of the defence of truth, including the Claimant allegedly stabbing a pupil with a sharp-pointed object, attacking young girls, and threatening to stab his attacker. In this case, however, the judge held all incidents to be unsatisfactorily proven by the Defendant, thus rejected as evidence. The Defendant’s truth defence was ultimately refused, and the claim was granted to the Claimant.

The Defendant was initially represented by solicitors, but later began representing himself after being declared bankrupt.

At trial, the Claimant and his father gave evidence. The Defendant did not give evidence, but called five witnesses (all of which were Almondbury pupils at the relevant time) in support of his defence. School records were used as further documented evidence – a method of assessing witness credibility.[1] The Defendant wished to rely upon video recordings as hearsay evidence upon the Court’s discretion as to its weighting,[2] though the Court decided that, in this case, little weight was to be attached to such evidence due to only selective snippets of hearsay being submitted.[3]

The Defendant’s allegations against the Claimant were very serious and published widely, causing severe harm to the Claimant’s reputation by portraying him as a violent aggressor. It could be predicted that such allegations would lead to the Claimant becoming the target of abuse, leading to him and his family having to leave their home and forcing the Claimant to abandon his education. The impact of this is likely to last this family a lifetime. For this reason, the judge awarded £100,000 in damages, with the issue of whether to award an injunction to be later reviewed upon further evidence.

 

[1] Lachaux v Lachaux [2017] 4 WLR 57.

[2] Civil Evidence Act 1995, s 4.

[3] Hourani v Thomson [2017] EWHC 432 (QB) [25] (Warby J).

Boeing Delays Starliner’s Launch Indefinitely

 

Boeing’s astronaut taxi – a CST-100 Starliner capsule – was scheduled to launch Friday, July 30 at 14:53 EDT on a demonstration mission to the International Space Station (ISS), Orbital Flight Test 2 (OFT-2). This was due to be Starliner’s second attempt at an uncrewed meetup with the space station, following a malfunction with the spacecraft’s timer on the mission’s first try in December 2019, causing the mission clock to be off by about 11 hours.[1]

Starliner’s debut attempt resulted in the spacecraft getting stranded in the wrong orbit, circling Earth solo for two days before having to return home. Not only was there a timing glitch, but the post-flight analyses by Boeing and NASA revealed 80 corrective actions for the company to take. Boeing is said to have made all of those changed, as well as additional changes that were not deemed mandatory.

The mission was later scheduled to launch Tuesday, August 3 at 13:20 EDT, on a United Launce Alliance Atlas V rocket from Space Launch Complex-41 at Cape Canaveral Space Force Station in Florida.[2]

Unfortunately, however, Starliner’s launch has now been delayed indefinitely, after struggling to find the cause of an ‘unexpected valve position’ in the propulsion system. Had the OFT-2 gone ahead as planned, the Starliner would have spent a day in space before docking with the ISS for up to 10 days, then returning to Earth in the New Mexico desert.

Boeing and SpaceX were each awarded one of NASA’s first commercial crew contracts in 2010. In September 2014, NASA selected both of them to be official commercial crew providers. Courtesy of this deal, Boeing was awarded $4.2 billion to finish developing Starliner and send up to six contracted crewed missions to the space station. SpaceX received a similar deal would about $2.6 billion for its own transportation system, which consists of the Crew Dragon capsule and the Falcon 9 rocket.[3]

Initially, NASA announced the target of one or both private spacecrafts to be operational by 2017. Neither Boeing nor SpaceX reached these goals following various development issues and malfunctions upon take off. Boeing has, however, fallen behind SpaceX in the competition to provide commercial flights to the ISS for space agencies including NASA. SpaceX has already flown two sets of astronauts to the ISS, with another scheduled for October and a private flight under operation for 2022.

NASA and Boeing plan to work through every function of the spacecraft in order to identify the cause of the unexpected valve position. Despite this, the flight has only been given a 60 per cent chance of success due to the risk of thunderstorms.

No new date has been announced for the Starliner launch. Safety first.

 

[1] https://www.dailymail.co.uk/sciencetech/article-9860433/Boeing-delays-launch-410-million-Starliner-INDEFINITELY.html

[2] https://www.republicworld.com/technology-news/science/nasa-set-to-launch-boeings-cst-100-starliner-cargo-spacecraft-to-iss-on-august-3.html

[3] https://www.msn.com/en-gb/money/technology/stakes-are-high-for-boeing-starliner-s-2nd-space-station-try-this-week/ar-AAMHEXA?ocid=winp1taskbar

Khan: Fines for Non-Mask Wearers Remains on TFL Services

 

London Mayor Sadiq Khan was amended the TFL conditions of carriage to make the wearing of face coverings mandatory despite the easing of restrictions across England.

In a move that opposes Prime Minister Boris Johnson, London Mayor Sadiq Khan has maintained that face coverings should be worn on all TFL (Transport For London) services as a legal requirement in respect of “greater public safety”.[1]

Prior to today, 19th July 2021, being dubbed so-called ‘Freedom Day’, it has been an offence under The Health Protection (Coronavirus, Wearing of Face Coverings in a Relevant Place) Regulations 2020 to not wear a face covering on public transport, with an attached fine of between £200-£6400 for non-compliance.[2] In the final stage of lockdown restrictions easing, Johnson recommended that it should be expected for individuals to wear their
face coverings in busy public settings where ventilation is poor i.e. the London Underground.

Johnson’s approach differs to that of the Welsh and Scottish government, who continue to make face coverings a legal necessity for use of public transport. Furthermore, Johnson is potentially opposing WHO (World Health Organisation) guidance in that face coverings are a key part to “supress transmission and save lives”,[3] this being very similar to UK governmental campaigns at the beginning of the pandemic.

Despite it no longer being a requirement under government regulations – following the 19th July 2021 – Khan reveals that under the Conditions of Carriage it will remain an offence to not wear a face covering on all TFL services, including private taxis.

Section 2.4 Conditions of Carriage:

“Given the coronavirus pandemic, all passengers over the age of 11 years must wear a face covering when travelling on our services, until further notice”.

“If you are not exempt and you fail to comply with this requirement or directions given by an authorised officer, you may not be allowed entry or may be asked to leave our premises. You may also receive a Fixed Penalty Notice or be prosecuted”.

Failure to comply will result in passengers being expelled and refused entry onto TFL services, being asked to leave TFL premises; or more seriously, an individual may incur monetary penalties, or face prosecution.[4] All employees of TFL are able to enforce the regulations.

Although not releasing his own definitive plans for public transport and mandatory mask wearing, fellow metro mayor, Andy Burnham (Greater Manchester) tentatively supports Khan in that he will not “rule out” following Khan’s decision.

It is an item of public interest to see how Khan’s changes to Johnson’s actions will develop and influence covid statistics over the coming weeks following the 19th July, one of which will be keenly watched and see if Khan’s approach is adopted by other major cities in the UK.

[1] Covid: Masks to remain compulsory on London transport – BBC News [accessed: 15th July 2021]

[2] https://tfl.gov.uk/campaign/face-coverings [accessed: 15th July 2021]

[3] https://www.who.int/emergencies/diseases/novel-coronavirus-2019/advice-for-public/when-and-how-to-use-masks [accessed 15th July 2021]

[4] Paragraph 2.4 Conditions of Carriage: https://content.tfl.gov.uk/tfl-conditions-of-carriage.pdf [accessed 15th July 2021]

 

High-rise Lease-holders Can Now Sue Developers to Recover Fire Safety Costs

Following the Grenfell Tower fire in 2017, the country was forced to overhaul its building safety regime, which was later found to be inadequate. Many lease-holders of high-rise buildings have faced large costs to fix defects within their fire safety systems. The government has, now, introduced a plan to help these lease-holders recover such costs,  in introducing a longer period in which to take legal action.

The government has now published its Building Safety Bill, which changes the way tall buildings are to be designed, constructed and managed. The Bill has introduced the ‘Building Safety Regulator’ to oversee the process, encourage improvement and implement regulations as well as rendering all dutyholders responsible and accountable for a building’s safety during their relevant stage in the building cycle, including the building owner.[1]

Controversy has arisen, however, surrounding the government’s approach to protecting all leaseholders from paying to fix flaws that were not of their making, accumulating criticism even from some of its own party’s MPs.[2] The draft version of the Bill had included a clause that allowed building owners to charge developers for historical building safety costs pre-dating the residents moving in, as confirmed by UK Housing Secretary, Robert Jenrick. Campaigners had labelled this a ‘lawyers’ get-rich-quick scheme’.[3] The Housing, Communities and Local Government Select Committee have recommended that the clause is amended, such that the Bill explicitly excludes such costs from the charge, which the Government has now accepted.

The legislation, introduced on 5 July, will now only allow building owners to use the building safety charge to cover any ongoing costs of the new regulatory regime. Moreover, the legislation places a duty on building owners to explore and exhaust alternative cost recovery routes, before passing costs to leaseholders.

In addition to such amendments, the period of time in which leaseholders can sue developers is more than doubled, taking the claim period from 6 to 15 years; thus allowing the lease-holder of a property built in 2006 to still sue this year. Furthermore, the Bill has been extended to cover refurbishment work rather than merely construction of a dwelling. With more than 2000 high-rise buildings requiring refurbishment to fix fire safety issues, this is a significant amendment.

This Bill has not yet received royal assent, but is expected to do so by 2022.

[1] https://www.gov.uk/government/publications/draft-building-safety-bill

[2] https://www.insidehousing.co.uk/insight/insight/what-impact-will-the-building-safety-bill-have-the-key-takeaways-71452

[3] https://www.theguardian.com/society/2021/jul/04/high-rise-leaseholders-criticise-plan-to-help-them-sue-over-fire-safety-costs?CMP=Share_iOSApp_Other

Virgin Galactic Set for Takeoff After FAA Approval

 

Billionaire Richard Branson’s spaceship company Virgin Galactic has been cleared for takeoff just a month after a successful test flight. Virgin Galactic’s first manned space flight departed from its new home port in New Mexico with two pilots.

This news comes following approval from the US aviation safety regulator, the Federal Aviation Administration (FAA), for Virgin Galactic to fly paying passengers to space, having had its general licence since 2016. The spaceflight company says this marks the first time the FAA has licenced a spaceline to fly the paying public.[1]

Since the approval of such commercial licence, the share price of Branson’s company increased by 35 per cent. Virgin Galactic has also already obtained 600 ticket reservations for flights from its new base, costing between $200,000 and $250,000 each.[2] Despite this, and the company so far having completed three test flights, it still has another three to go. The next will carry four passengers to test the spacecraft’s cabin, with the following flight having Branson himself on board. The final test flight will carry members of the Italian Air Force for astronaut training.

This will turn up the pressure on rivals in the space tourism sector. Branson’s space venture faces off against Amazon founder Jeff Bezos’ Blue Origin and Tesla CEO Elon Musk’s SpaceX. All have been investing billions into their rocket startups. Branson is reported to be flying to space himself with the hopes of beating rival Bezos to the final frontier.[3] Bezos has announced that he will be onboard Blue Origin’s first space flight on 20 July.

[1] https://www.electronicsweekly.com/news/faa-greenlights-virgin-galactic-licence-fly-customers-2021-06/

[2] https://www.msn.com/en-gb/travel/news/virgin-galactic-gets-faa-approval-for-commercial-passenger-space-flights/ar-AALsaTq?ocid=BingNewsSearch

[3] https://www.msn.com/en-gb/news/world/branson-s-virgin-galactic-gets-faa-approval-to-fly-people-to-space/ar-AALrnyF?ocid=winp1taskbar