Airbus has announced a €300 million ($314 million) charge for its space project as it engages in discussions with Italian company Leonardo and French company Thales Alenia about potentially combining their satellite operations. This decision follows a program review indicating that additional costs were expected. For 2024, Airbus’s overall costs for its space business are projected to reach €1.3 billion, following a €900 million charge taken in June.
Airbus has faced challenges in accurately assessing technology risks in its satellite program, which contributed to the additional charges. CEO Guillaume Faury emphasized a more selective approach to contracts moving forward and highlighted the need for scale to effectively compete against larger U.S. competitors. He noted the integration of space operations with Leonardo and Thales could enhance competitiveness, although this initiative may face European antitrust scrutiny.
The current discussions focus only on satellites and services, excluding launch systems. Airbus is still exploring options and has not established a timeline for these potential collaborations.
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