Virgin Galactic, which aims to offer space travel to the public, expects to offer its maiden voyage in early 2009, after a series of test flights.
Mr Branson unveiled the interior of spaceship in New York which will be able to transport six passengers and two pilots about 120 kilometres above the Earth for a half-hour voyage in zero gravity.
The technology developed for the vehicle is being built in California's Mojave desert and it’s claimed the spacecraft is as environmentally friendly as possible.
Mr Branson told reporters this same technology could also be used in airplanes and could eventually allow people to travel between London and Sydney in half an hour.
The craft's white, minimalist interior has seats that recline to allow for a less jolting re-entry into Earth's atmosphere and several round windows positioned from floor to ceiling.
Spaceflight Lottery
Tens of thousands of people have already expressed an interest in the Virgin voyage, with tickets runningat $US200,000 dollars ($A250,000) each, and 200 have already made a deposit, the company said.
Mr Branson said "200,000 dollars is obviously still too expensive, but we've got lots of pioneers willing to pay."
"Our vision is to successfully build the world's first environmentally benign space launch system and prove once and for all the commercial viability of a safe space launch system that we believe will eventually be capable of taking payload and science into space as well as people," he said.
"We hope millions of people will travel into space," Mr Branson said.
As part of its goal of making space travel more accessible, Virgin Galactic plans to offer group rates, and wants to launch a reality television show and a lottery that will offer winners spaceflights.
Virgin Atlantic Airways' frequent flier program also allows members to accrue points toward future space travel.
One happy member, who has already accrued the required two million points, was on hand for Thursday's unveiling in New York.