European companies Airbus, Thales and Leonardo are exploring plans to create a new joint space venture as they attempt to compete with the Starlink constellation, Elon Musk’s proposal to create his own internet. Dubbed ‘Project Bromo’ (the same name as an Indonesian volcano), it envisages an independent coalition of companies inspired by the model of the missile manufacturing company MBDA, in which Airbus, Leonardo and BAE Systems participate, according to three sources. close to negotiations Reuters.
For now, Europe’s main satellite makers have only said that they are considering working together on a larger scale in a sector hit by heavy losses, as the rapid growth of the Starlink network dominates low-Earth orbit.
Although they are still in an early stage, the talks have advanced enough to obtain a code name within Airbus, as well as a structure preferably based on a new combined company and not one of them buying the rest of the companies, the companies said. same sources.
Leonardo CEO Roberto Cingolani explained to Reuters that the talks included several technical discussions and confirmed that the planned structure would be based on the company’s MDBA model. “That is the only way, it is difficult for it to be anything else,” he said on the sidelines of an event in Rome. At the moment, Airbus and Thales have not wanted to comment on the matter.
The merger proposals are separate from the job cuts that will be announced this week and could also take years to implement, one source said. But together, they represent a multi-speed effort to get Europe’s struggling space sector in shape to face the competition.
Europe’s leading satellite makers have traditionally focused on complex spacecraft in geostationary orbit, but have been hit by the arrival of tiny, cheap satellites in low-Earth orbit. Cingolani said satellites would become 75% of the space economy.
Staff cuts at Airbus and Thales
Talks to reshape the industry’s long-term structure come as thousands of Airbus workers wait for details of space and defense job cuts to be presented to unions on Wednesday and Thursday. Airbus said in October it would cut up to 2,500 jobs, or 7% of its Defense and Space division, by mid-2026.
For its part, Thales, which has two existing alliances with Leonardo in satellites and services, is in talks with unions about plans to cut 1,300 space-related jobs.
The bulk of Airbus’ job cuts are expected to fall on the 2 billion euro ($2.1 billion) space systems business, which is recovering 1.5 billion euros of recent charges, industry sources said.
Airbus has most of its space activities in France. The Defense and Space division’s headquarters in Germany are also set to be downsized, while Britain faces concerns over the future of at least one plant. Spain faces pressure on defense. Airbus has said the cuts are expected to be achieved through voluntary schemes.
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