"The U.S. Federal Aviation Administration's Office of Commercial Space Transportation (FAA-AST) has awarded Virgin Galactic an operator license for SpaceShipTwo. The license award, which will ultimately permit commercial operations of the vehicle, was the culmination of several years of in-depth interaction with the FAA. The license review process consists of an in-depth review of the vehicles system design, safety analysis and flight trajectory analysis, culminating in FAA-AST approval."
"The license prohibits Virgin Galactic from flying what are officially classified as "spaceflight participants" on SpaceShipTwo until the company can "successfully verify the integrated performance" of SpaceShipTwo and WhiteKnightTwo. "Verification must include flight testing, and the results must be provided to the FAA prior to conducting a mission with a space flight participant on board," the license states.
Virgin Galactic opted to receive the launch license, with those restrictions, over an alternative known as an experimental permit. Such permits allow for testing of suborbital reusable launch vehicles under a more streamlined regulatory environment, but prohibit the company holding the permit from using the vehicle for any commercial application. Blue Origin, for example, has an experimental permit for test flights of its New Shepard suborbital vehicle."