Apparently the Space Ship Two exploded during test flights above Mojave desert. There were two test pilots on board, one of whom died and the other sustained serious injuries. This is a sad day. Conquest of space is not without casualties, however, staying on Earth is not any safer. Silent moment to honor the brave pilots.
Luckily Richard doesn't answer to tax payers because he uses his own money. I guess this is possibly an advantage of private space exploration in democratic countries. While in authoritarian countries the state simply says "ok, it blew up -NEXT!", democratic tax funded programs are always in shambles when eventually anything goes wrong.
http://www.bbc.com/news/world-us-canada-29861259 Branson vows to continue space project "Mr Branson, founder of the Virgin Group and a long-time advocate of commercial space travel, said he was "shocked and saddened" but would "persevere"."
Surviving pilot awakens, has been visited by his father who is a doctor. Injuries include a shattered shoulder, punctured lung, broken ribs and cold-induced sight problems. The air is -60ºC at the altitude where explosion occurred. Peter Siebold is said to have lost consciousness when the plane exploded but regained it at least partially when the escort plane flew by him and he showed a raised thumb. He was still attached to his chair when he hit the ground - and the chair was not an ejector seat, instead the chair was blown out of the space ship after the explosion. The dead pilot couldn't make his way out. Parachutes were set to automatically deploy at 1000 meters. Peter's father says that it's a 'medical miracle' that Peter survived the cold and pressure changes he was subjected to. The reason for ship's explosion appears to be structural one but it will take up to a year longer until the final analysis is ready. It was truly a sad week since also Nasa's Antares-lifter blew up when it was scheduled to deliver supplies to ISS. The rocket fell back on the launch site and exploded. So indeed it was a really bad week for space exploration. :Edit According to another source it was not an explosion as the fuel tanks and engine weren't seriously damaged, instead the accident was caused because an air brake of sorts deployed itself too early.