Virgin Galactic has received regulatory approval to transport customers to space, marking a significant advancement for the emerging industry founded by billionaires. The company announced on Friday that the Federal Aviation Administration (FAA) upgraded its existing license to cover customer flights, stating that this approval is the first of its kind. Virgin Galactic also confirmed that a test flight on May 22 performed well against its objectives.
This approval represents another milestone for an industry that was once the stuff of science fiction. Founded by entrepreneur Richard Branson, Virgin Galactic has been working toward this goal since 2004. Competing billionaire Jeff Bezos plans his first flight in July after auctioning a passenger seat for $28 million.
The FAA stated in a release on Virgin Galactic's website: "A new chapter has begun in the story of human spaceflight." The agency confirmed that it has "approved the first commercial license for launching individuals into space."
Virgin Galactic's stock jumped 15% to $46.24 at 9:49 AM in New York, after rising up to 23%, marking the largest daily gain in a month. As of Thursday, the company’s market capitalization stood at $9.7 billion. The company stated that data from May's test flight, the first rocket launch by Virgin Galactic in two years, confirmed that the horizontal stabilizers and flight controls on VSS Unity functioned as predicted.
The rocket-powered suborbital vehicle is carried by a larger aircraft called VMS Eve before its launch. In the May test, it reached space at an altitude of 55.5 miles. The company stated that it will continue preparing for three remaining test flights.
