Next Space Race Under Way

Meet The Man Leading The Way To A Future With Space Tourism

(CBS)  Since the dawn of the Space Age, only 437 people have flown into space. All but two of them were part of government-funded space programs, on government-funded spaceships. The other two worked for Rutan, whose privately-funded space program ended that monopoly.

But Rutan's goal is much more ambitious: "affordable space travel" in our lifetime, for ordinary people. The catalyst behind all this was a competition known as the X Prize, a $10 million challenge to build a privately-funded spacecraft, then fly it into space twice in a period of two weeks. It was a contest intended to kick-start a new industry: "astro-tourism."

"At first, it wasn't important to us," Rutan says of the X Prize. "The prize was just kind of 'Oh, that's froufrou. The most important thing is for us to show that a private small company can fly a manned space flight.' Later, after we had flown the June flight, and we had reached the goal of our program, then the most important thing was to win that prize."

Wealthy space enthusiasts created the X Prize in 1986 to stimulate private investment in space.

The first of SpaceShipOne's attempts at the two flights in two weeks needed to win the prize took place on Sept. 29, 2004. It was once again piloted by Melvill. Melvill spent weeks training for the mission in a flight simulator because, unlike the space shuttle, SpaceShipOne doesn't rely on computer control. Success is in the hands of the pilot.

Can you compare it to a NASA flight? Melvill says no. "They're two different things. If you're going in the shuttle, you are in a Greyhound bus going to space. And the computer's driving the airplane. If you're going in our spaceship, you're the guy. And if you don't fly it, you're - you're not gonna come back."

The September flight put Melvill's skills and training to the test. As he was climbing out of the atmosphere, the spacecraft suddenly went into a series of rolls. Was he concerned?

"Well, I thought I could work it out," Melvill answers. "I'm very confident when I'm flying a plane. When I've got the controls in my hand, I always believed I can fix this, no matter how bad it gets."

SpaceShipOne rolled 29 times before Melvill regained control. The remainder of the flight was without incident, and the landing, flawless.

Rutan wanted to attempt the second required flight four days later, leaving the engineers little time to figure out the problem and fix it. Working 12-hour shifts, they discovered they didn't need to fix the spacecraft - just the way the pilots flew it.

For the second flight, it was test pilot Brian Binnie's turn to fly SpaceShipOne. On Oct. 4, 2004, SpaceShipOne made its second successful trip to space, capturing the $10 million prize.

Rutan also won bragging rights over the space establishment, which he frequently criticizes for being inefficient and bureaucratic.

"You know, I was wondering what they are feeling, 'they' being that other space agency," Rutan says with a laugh. "And, uh... you know, quite frankly, I think the big guys, the Boeings, the Lockheeds, the nay-say people at Houston, I think they're looking at each other now, and saying, 'We're screwed!' Because, I'll tell you something, I have of a hell a lot bigger goal than they do!"

He's already at work, designing the details.

"The astronauts say that the most exciting experience is floating around in a space suit," says Rutan, showing off his own plans. "But I don't agree. A space suit is an awful thing. It constrains you and it has noisy fans running. Now look over here. It's quiet. And you're out here, watching the world go by in what you might call a 'spiritual dome.' Well, that, to me, is better than a space suit 'cause you're not constrained.

He also has a vision for a resort hotel in space, and says it all could be accomplished in the foreseeable future. Rutan believes it is the dawn of a new era.

He explains, "I think we've proven now that the small guys can build a space ship and go to space. And not only that, we've convinced a rich guy, a very rich guy, to come to this country and build a space program to take everyday people to space.

The "rich guy" is Richard Branson, the English billionaire who owns Virgin Atlantic Airways. On Sept. 27, 2004, Branson announced a $120 million deal with Rutan to build five spaceships for paying customers. Named Virgin Galactic, it will be the world's first "spaceline."

Rutan is already designing a commercial version of his spaceship and making plans to turn his research and development program into a production line for Branson. He says the first rides to space will probably cost upward of $100,000 a ticket. He thinks there's an initial market to sustain it, and that costs will eventually drop.

But before paying customers can fly, the government must grant a license, a bureaucratic process that could slow everything down. Rutan says his spaceships will be safer than the government's: "You know, 4 percent of the people who have flown in space have been killed in space accidents. And no way can you have a spaceline and kill 4 percent of your passengers."

Therefore, in addition to a low cost, there must be a high safety factor.

Assuming the government gives him the green light, Rutan plans to be up and flying by 2008. He says that's just the beginning.

"The goal is affordable travel above low earth orbit. In other words," he explains, "affordable travel for us to go to the moon. Affordable travel. That means not just NASA astronauts, but thousands of people being able to go to the moon."

This September, Rutan's spacecraft will be hung in the National Air and Space Museum in Washington, D.C., right next to Lindbergh's Spirit of St. Louis.