"The FAA conducted a comprehensive safety review of the SpaceX Starship Flight 8 mishap and determined that the company has satisfactorily addressed the causes of the mishap, and, therefore, the Starship vehicle can return to flight," the FAA said in a statement.

The FAA said it took several factors into account when clearing the Starship for a return to space, including public safety, unplanned debris and the performance of the craft's "safety-critical" systems.

It mandated that SpaceX have a $550 million insurance policy to cover a potential hazard area that stretches 1,600 miles from the Starbase, Texas, launch site through the Straits of Florida, including the Bahamas and Turks & Caicos. The Starship 7 mission in January exploded minutes after launch, sending flaming debris raining into the Gulf of Mexico.

The hazard zone for the upcoming launch is twice the size of the one created for the ill-fated Starship 8 mission in March. The FAA also required Starship 9 to be launched in "non-peak transit" hours. The Starship 8 mission failure stopped commercial air traffic in Florida when it went off course and spiraled out of control minutes after launch.

Doubling the size of the hazard zone is partly the result of plans for Starship 9 to employ SpaceX's first-stage reusable fuel booster, known as Super Heavy, which is scheduled to return to the launch site. There it is designed to be captured with a pair of arms -- known as "chop sticks" -- and re-used in future missions.

SpaceX has not announced a launch date, but scheduled airspace closures in the area suggest it could occur on May 27th, Space.com reported.

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