I’m about as stoked about this as you can get, and I’m as big a proponent of private space flight as you’re likely to find, but I have to point out that there is a HUGE difference between what Rutan just accomplished and actually building an orbital craft.
Rutan’s ship:
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Has no heat shield to speak of. It’s highest speed was something like Mach 3. To make orbit, you need to be going just about ten times faster.
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Has no life support suitable for space flight.
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Does not scale well. You can’t just make one ten times bigger and fly into orbit. That would require a ‘mothership’ ten times bigger, and would require about 100 times more fuel.
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Has primitive reaction controls - nothing like what would be needed for orbital manoevering.
Attaining orbit isn’t five times harder than what Rutan just accomplished - it’s about 100 times harder.
And then to actually accomplish anything in orbit, you need docking hardware, airlocks, space suits, special tools, etc. All the things NASA had to develop from scratch and engineer through trial-and-error.
I believe that private industry can go into space cheaper than the government can, especially since they can leverage much of the hardware NASA has already built. But not THAT much cheaper. If SpaceShipOne cost $27 million to build, I’d have to think an orbital ship will be at least ten times that much money.
But the beauty of the way Rutan is doing it is that he’s attaining his capability slowly, in a self-financing way. Richard Branson has given him another 27 million to build the next generation of SpaceShipOne, which will essentially be a bigger suborbital ship. With that, they are going to fly up to seven passenger at a time, maybe once a week, for a cost (initially) of $200,000 each, decreasing to maybe $30,000 as the development costs are recouped.
The money from those flight can be sunk into an R&D program for an orbital ship, and proving that there is money to be made at space tourism might bring in the big bucks from companies like Hilton. Branson estimates the suborbital tourist market at around 600 million, just for the initial $200,000 phase. There are a lot of millionaires out there. If they can show a profit of a couple of hundred million dollars, and then float a proposal for an orbital system, they can get venture capital or even megabuck investments from entertainment moguls and corporations.
In the meantime, Rutan will develop competency in space flight, work out the bugs, bring down the costs, improve the designs, etc.
So I think it’ll happen. One day there will be private orbital ships. But it’s not going to be soon, and it’s not going to be cheap. By the end of the decade? Possibly - on a scale similar to SpaceShipOne’s (i.e. an experimental ship optimized for the prize flight, lacking any other systems needed for general use).
You aren’t going to see passenger orbital flights for 15-20 years, if then. It’s just a huge engineering challenge. SpaceShipOne was simply an envelope expansion of building high altitude aircraft - something Rutan is very good at. Building real orbital spaceships is a whole 'nuther thing.
But if anyone can do it, it’s Burt Rutan. Here’s hoping for his long healthy life - he’s starting to get a little long in the tooth to be starting a new phase of his career. Hope he takes good care of himself.