The Northern Territory's workplace watchdog will pursue criminal charges against a hot-air ballooning operator over the death of a woman after the High Court cleared the way to do so.
The Work Health Authority won an appeal to the court arguing that Outback Ballooning Pty Ltd could be prosecuted under NT laws.
Sydney woman Stephanie Bernoth, 35, was preparing to climb into a hot air balloon basket in Alice Springs when her scarf was sucked through the mesh guard of a cold-air inflation fan in July 2013.
She died a week later in hospital from critical neck injuries.
The Work Health Authority filed a complaint against Outback Ballooning under a section of the territory's WHS Act.
The WHA said the company had failed its duty of care to eliminate or minimise risks, such as loose clothing, to embarking passengers that arose from the use of a fan to inflate the hot-air balloon.
However, it was blocked from charging the company when the complaint was dismissed by the NT Court of Summary Jurisdiction as invalid on the basis that the complaint was covered by federal aviation regulation.
The NT Supreme Court found in favour of the workplace authorities, but the territory's appeals court allowed an appeal against that decision, arguing federal aviation law extended to the embarkation of passengers.
On Wednesday, the High Court allowed WHA's appeal, finding territory workplace laws were not inconsistent with commonwealth civil action laws.
"The CA (Civil Aviation) Act in relevant respects is designed to operate within the framework of other state, territory and Commonwealth laws," the court said in its judgment.
The Work Health Authority said in a statement it was "pleased with the decision and will restart the prosecution of Outback Ballooning Pty Ltd".
The company, which is still operating, faces a fine of up to $1.5 million if found guilty.
It did not respond to AAP's request for a comment.
Pilot Jason Livingston, who bought Outback Ballooning only days before the incident, had manslaughter charges regarding the case dropped by prosecutors in 2015.
