Airbus to start converting its satellite division
After writing off billions on its satellite business, European aircraft manufacturer Airbus is reportedly restructuring its space division, according to industry sources. Airbus has implemented an immediate cost-cutting program for its entire Defence & Space division, which also includes its defense business, said people familiar with the plans to Reuters news agency. The financial situation there is considered "critical." In September, Airbus plans to present concrete measures for Space Systems. The division is facing pressure from new competitors like SpaceX from Elon Musk, which can launch satellites more cheaply into the atmosphere. In the first and second quarters, Airbus wrote off a total of 1.5 billion euros on space projects.
A comprehensive review of the long-term space strategy is planned for the fourth quarter, the insiders said. Both the Italian Leonardo and the French Thales are involved in discussions about consolidation on a European level. Neither Airbus nor the other companies mentioned wished to comment.
Airbus is reportedly restructuring its entire space division, which includes its aircraft for satellite deployment, in an effort to compete more effectively in the satellite industry. With new competitors like SpaceX offering cheaper satellite launch services, the financial situation of Airbus's Space Systems division has become critical.
