Airbus is exploring the sale of its US-based space division, Airbus OneWeb Satellites (AOS), according to industry sources. This move aligns with a broader strategy to consolidate its European space activities and prioritize the production of satellites within the European Union. The company has been grappling with financial challenges in its space business, including $1.5 billion in recent charges, and is seeking to rationalize operations.
The potential divestiture of AOS, which was formerly a joint venture with OneWeb and became fully owned by Airbus in 2023, comes as Airbus engages in ongoing discussions with Italy's Leonardo and France's Thales regarding a possible merger of their respective space businesses. These talks aim to create a consolidated European space entity capable of competing with larger international players like those in the United States. Airbus sees consolidation as crucial for achieving critical mass and becoming a "European champion" in the space sector.
Despite the proposed sale of AOS, the US subsidiary has demonstrated strong performance, recently securing contracts from Eutelsat to build 440 satellites for the OneWeb constellation. Employee unions at AOS have expressed opposition to a potential integration into Airbus's larger Defence and Space unit, fearing a loss of agility and efficiency. However, Airbus's overall turnaround plan for its space systems includes a focus on competitiveness, efficiency, and profitability, as well as job reductions, primarily in back-office positions, to streamline operations.
