Branson and Rutan unveiled a model of what they call, "Spaceship Two" in New York. The pair also showed off a model of the big, four-engine jet that will help launch the craft into space and a video of how it works.
Within a few years, a handful of tourists who can afford the ride could blast off into space.
The ship is now under construction at a hangar in the Mojave Desert. Test flights will begin later this year.
About 200 prospective passengers have reservations for spaceship two at $200-thousand dollars each.