An aerodynamic fairing system for an airship having a substantially spherical balloon portion includes an inflatable fairing that is attachable to the balloon portion, and a fairing actuation mechanism that selectively inflates and deploys the fairing after lift-off, and deflates and retracts the fairing before landing. The actuation mechanism includes an inflation/deflation mechanism and a deployment/retraction mechanism that cooperate to deploy and inflate the fairing, and to deflate and retract the fairing. The fairing includes a substantially conical, inflatable tail section tapering from a wide forward end to a narrow aft end, and a collapsible annular collar connecting the forward end of the tail section to the balloon portion. The inflation/deflation mechanism includes a fan system in the tail section, and the deployment/retraction mechanism includes a plurality of cables attached between the tail section and a plurality of winches mounted on the balloon portion.