The rocket is shut down and the craft coasts to the top of its climb - and then begins a descent slowed and stabilised by unique "feathering" technology.
The twin tails temporarily rotate upward to increase drag, then return to a normal flying configuration before the craft glides to a landing on a runway.
The project began in 2004 when Sir Richard announced the founding of Virgin Galactic in the days after the flights of SpaceShipOne, the first privately financed manned spacecraft that made three flights into space.