The first challenge is studying the potential damage to the asphalt runways at Huntsville International Airport. Dream Chaser lands on two rear wheels and deploys a front skid plate. The runway also includes embedded lights that could be affected.

If the runway impact is manageable, the project's partners will begin negotiations with the Federal Aviation Administration. Teledyne and Sierra Nevada executives said other issues include the impact on aviation, the environment and birds and wildlife in the airport area.

Huntsville International is a realistic option for landing the Dream Chaser because of widely separated runways long enough to handle the largest commercial jets. It is busy at certain times of the day, but also has scheduling gaps that could make Dream Chaser landings easy to handle.

The Dream Chaser will go from orbit to ground in about an hour, Sierra Nevada officials said. Once the decision is made to land and Dream Chaser's de-orbit engines are fired, the spacecraft is coming down. It cannot be waived off for another approach to the airport.

Sierra Nevada lost out to Boeing and SpaceX in NASA's competition to fly astronauts to and from the space station, but it is still in the running to deliver cargo.

The announcement coincides with the annual Paris Air Show, the biggest show dedicated to the aerospace industry worldwide.

City of Huntsville Director of Communications Kelly Schrimsher said Thursday the Sierra Nevada announcement was made simultaneously in Paris.

Updated at 9:30 a.m. with additional details throughout. Follow reporter @LeeRoop for more updates.