Hot air balloon company can be prosecuted for 2013 death of Sydney woman in Alice Springs

A hot-air ballooning operator can be prosecuted under Northern Territory laws over the death of a Sydney woman in 2013, the High Court has found.

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 NT's 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 to eliminate or minimise risks to embarking passengers that arose from the use of a fan to inflate the hot-air balloon.

However, the complaint was dismissed by the Northern Territory 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 commonwealth laws were designed to operate within the framework of other state, territory and commonwealth laws, the court found.

The decision effectively means the WHA can now pursue charges over an alleged failure of duty of care.