MOJAVE, June 21: A US rocket-plane, Space Ship One, on Monday became the first privately-financed craft to fly into the fringes of space and return to Earth. The mission, created by pioneer aviation engineer Burt Rutan and paid for by Microsoft co-founder Paul Allen, could become a landmark step to opening up space exploration.

The distinctive white rocket plane was released from a larger plane called the White Knight and ignited its rocket engine to enter space 100kms above the Earth. Against the backdrop of a clear blue sky, it landed safely back at a runway in the Mojave Desert, California, 160kms north of Los Angeles.

"The colours were pretty staggering from up there," said pilot Michael Melvill, who also earned his wings, officially, as an astronaut. "It was almost a religious experience."

Mr Melvill said he could see the black expanse of outer space, the curvature of the Earth and a broad swathe of the Southern California coast during his three and half minutes just beyond the Earth's atmosphere.

The unprecedented 20 million dollars project was intended to demonstrate the viability of commercial space flight and open the door for space tourism. The plane with its striking nose - a pointed cone covered with small portholes - was designed by legendary aerospace designer Burt Rutan and built with more than 20 million dollars in funding by billionaire Paul Allen, who co-founded Microsoft Corp.

After burning its rocket for 80 seconds, Space Ship One sped up to more than three times the speed of sound and then coasted to its peak altitude, making Mr Melvill weightless. Michael Melville said he released a bag of M&Ms chocolates to see if they would float in the cockpit. "It was amazing, these M&Ms were going around everywhere," he said.

The flight marked the first time that a non-government spacecraft reached the altitude considered to be the boundary between the Earth's atmosphere and outer space. Allen and Space Ship One's builders were expected to next try for the Ansari X Prize, which is 10 million dollars for the first team that sends three people, or an equivalent weight, on a manned space vehicle 100kms above the Earth and repeats the trip within two weeks. -Reuters