What's Happening?
European aerospace companies Airbus, Thales, and Leonardo are planning to sign an initial agreement to combine their satellite businesses by the end of the year. The collaboration, known as 'Project Bromo,' aims to establish a satellite manufacturing company to compete with major players like Elon Musk's Starlink. Airbus Defence and Space CEO Michael Schoellhorn confirmed the plan, stating that while progress is being made, several issues need clarification before finalizing the agreement. The deal is expected to involve a two-step process, starting with a framework agreement followed by the actual closing of the deal.
Why It's Important?
The proposed tie-up between Airbus, Thales, and Leonardo could significantly impact the satellite manufacturing industry by creating a formidable competitor to existing giants like Starlink. This collaboration could enhance Europe's position in the global satellite market, fostering innovation and potentially leading to more competitive pricing and advanced technologies. The partnership may also strengthen Europe's strategic autonomy in space, reducing reliance on non-European satellite providers and boosting the region's technological capabilities.
What's Next?
If the initial agreement is signed this year, the companies will proceed with the framework agreement and work towards closing the deal. This process will involve addressing outstanding issues and aligning the strategic goals of the involved parties. The successful establishment of the satellite manufacturing company could lead to increased investment in research and development, potentially resulting in new satellite technologies and services.
