Airbus and Thales explore merger of space activities

The European aerospace groups Airbus and Thales are considering merging some of their space activities, according to the French business newspaper La Tribune. The activities the two groups are focusing on would be satellite activities under pressure from competition from American companies, in a sector where European groups are dependent on public contracts and currently have not found an adequate model to cover their high costs.

Airbus Defence & Space and Thales Alenia Space, in which Italy's Leonardo holds a minority stake, are Europe's largest manufacturers of telecommunications, navigation and surveillance satellites. For Airbus, the satellite division is making a loss of EUR 900 million this year on top of last year's loss of EUR 500 million.

Airbus CEO Guillaume Faury recently stated in a meeting with journalists that the company is 'evaluating all strategic options' for its space activities, including restructuring, cooperation, portfolio review and potential merger and acquisition options.