It is possible for the ship to be destroyed during game play. This can happen if the ship sustains too much damage from asteroids, harsh planetary atmospheres, and enemy ships. If this occurs, you will see a “failed mission” screen. You can then either restart the mission from the beginning or restart from a checkpoint.
Restarting the mission brings you back to the very beginning of the mission.
Restarting from checkpoint brings you to the last checkpoint you reached in your mission. Checkpoints are usually at the start of new activities.