Richard Branson’s Virgin Galactic Holdings Inc. came a step closer to sending customers to the edge of space Friday as federal regulators expanded the company’s operator license.
Virgin is competing with Blue Origin LLC in the accelerating race to carry space tourists on short suborbital flights. Blue Origin, founded by Jeff Bezos, moved that race forward earlier this month when it said its first manned flight will take place in July, with Mr. Bezos himself as a passenger.
On Friday, Virgin said the Federal Aviation Administration granted approval of Virgin’s full commercial space-launch license, opening the door for outside passengers to join flights. The approval followed a test flight on May 22.
Virgin Galactic shares soared about 30% on Friday, to $52.37 in midafternoon trading.
Blue Origin has applied for but hasn’t yet received a similar approval from the FAA, an FAA spokesman said. “As for all license application reviews, the FAA will make a decision when and if all regulatory requirements are met,” the agency spokesman said of Blue Origin’s application. A Blue Origin spokeswoman didn’t immediately comment.