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In the heat of competition: Sources at Virgin Galactic suggest that the company has still not made up its mind on the type of engine it will use on SpaceShipTwo.
Messier sums up the situation perfectly:
The lack of clarity about SpaceShipTwo’s main propulsion system is highly unusual. It’s difficult if not impossible to think of another space project that was uncertain about its primary propulsion system after nearly a decade of development.
Increasingly I do not see this spaceship ever flying, which saddens me. They had a ten year head start over everyone else, and have squandered it.