Europe’s aerospace giants Airbus, Thales, and Leonardo are reportedly collaborating on a new joint venture, dubbed “Project Bromo,” aimed at creating a European satellite powerhouse to rival Elon Musk’s Starlink network.
Named after the active Indonesian volcano Mount Bromo, the initiative envisions establishing a standalone European satellite company modeled after MBDA, the missile manufacturer jointly owned by Airbus, Leonardo, and BAE Systems. According to sources familiar with the matter, this move represents a significant shift in strategy as Europe’s leading satellite makers seek to consolidate their assets and expertise.
Until recently, Airbus, Thales, and Leonardo had only hinted at the possibility of collaboration to scale up in a sector facing heavy losses. The rapid expansion of Musk’s Starlink, which dominates low Earth orbit with its fleet of small, cost-effective satellites, has disrupted traditional satellite businesses that focus on complex spacecraft in geostationary orbit.
Although still in the early stages, discussions for Project Bromo have advanced sufficiently to formalize a code name within Airbus and outline a preferred structure. The plan involves combining satellite assets into a new company rather than one partner acquiring assets from the others, sources said.
Leonardo’s CEO, Roberto Cingolani, confirmed the talks and indicated that the intended structure would mirror that of MBDA. “That’s the one; it is hard that it can be anything else,” he remarked during an event in Rome.
While Airbus and Thales declined to comment, insiders suggest that the proposed merger is separate from impending job cuts expected to be announced this week. The consolidation efforts could take years to implement but signal a concerted effort to bolster Europe’s position in the competitive space sector.
Europe’s traditional satellite industry has been challenged by the rise of inexpensive, small satellites operating in low Earth orbit. As satellites are projected to constitute 75 percent of the space economy, according to Cingolani, adapting to this shift is crucial for European companies to remain relevant.
Project Bromo represents a strategic endeavor to revitalize Europe’s satellite capabilities and compete on a global scale, particularly against formidable players like Starlink. By pooling resources and expertise, Airbus, Thales, and Leonardo aim to create a robust European alternative in the rapidly evolving space industry.
Reference(s):
Space firms plot new European satellite venture to take on Starlink
cgtn.com
