Airbus, Thales, Leonardo, among other European space firms, are reportedly planning a new satellite start-up to compete with billionaire Elon Musk’s Starlink network. Codename “Project Bromo”, in its essence, plans for a long-term independent, continuously expandable constellation in LEO The proposed plan aims at establishing a solid European actor for LEO, a sector that has been conquered by the lightning growth of Starlink.
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Project Bromo takes its name from an Indonesian volcano and involve ultimately a co-owned European satellite company that is structured like missile manufacturer MBDA in which Airbus, Leonardo, and BAE Systems have stakes. It’s also assumed that the deal should be unfolded as the strategy to achieve greater scale in the satellite business.
Although more theoretical at the moment, the proposal subject has already attracted increased attention. The insiders believe the structure of the undertaking will not entail one firm buying satellite’s assets in other firms but create a new company that will assemble satellite assets from the firms.
Europe’s satellite industry is currently experiencing declining profits now that it is under intense pressure from Starlink, Musk’s satellite system that is quickly growing in size. Instead, the new venture plans to bring people together to gather money and skill to form an entity that will be capable of challenging the commercial space giant.
This was seen when “Project Bromo” was being formulated as the companies who participated in the program face massive layoffs as they sought to integrate themselves for the new business project. This restructuring demonstrates that the market is forcing the industry to change in an effort to stay afloat as Starlink continues to take over the satellite business.
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Leonardo chief executive, Roberto Cingolani remarked that leading European space firms are indeed in discussions to achieve establishment of the venture. The proposed structure would be based on MBDA model which is a missile manufacturing company that Airbus has a joint venture with Leonardo and BAE Systems. Cingolani further said that this structure would not easily change pointing to the robust nature of the partnership.
Airbus and Thales have not commented on the talks but Cingolani’s statement reveals how the discussion has been worked in cooperation. This is because the idea is to create a formidable European satellite contender powerful enough to challenge the emerging dominance of LEO networks such as SpaceX’s Starlink.
These merger proposals, however, are unrelated to what appears set to be an avalanche of layoffs happening this week. It may take years for this change to unfurl in Europe’s satellite industry but this reorganization shows intent to reinvent a sector that is struggling with competitiveness against cheaper entrants such as Starlink.
Europe’s satellite makers have traditionally focused on demanding missions in geostationary orbit spacecraft. But the new business model with hefty expensive satellites for GSO has been upset by the tiny satellites affordable for LEO. He pointed out that that satellites today will account for 75% of the space economy stressing the need for EU to upgrade its space sector.
The processes linked with the discussed mergers and probable job losses describe a range of problems characteristic of the European space industry. It reflects further multi-speed strategy to preserve job chances for thousands of Airbus workers awaiting the outcome of space and defense job cuts to ensure Europe remains relevant in the cosmic race around the globe.
Airbus and Thales Face Job Cuts as European Space Industry Restructures Amid "Project Bromo"
In October, Airbus unveiled a plan to eliminate between 1 200-2 500 posts, about 7% of workforce, in its defence and space division by mid 2026. This is in addition to other measures under restructuring drives due to problems at space systems business that posted 1.5 billion euros in charges recently.
Another important company in the European space industry, Thales, is also trimming its staff roster. The company is in the process of negotiating with unions to reduce 1,300 human posts related to space under the structural recombination. Such measures depict current challenges of the sector to continue coping with increased pressures across the global economy.
Most of the reductions in the workforce are likely to be at the Airbus space systems division, particularly in France which is home to most Airbus space operations. The defence company in Germany that operates under the banner of company’s Defence and Space division is expected to go for downsizing and certain developments are expected in Britain with at least one plant and pressure building up in the Spanish defence market.
Nevertheless, Airbus and Thales are working on “Project Bromo,” a European satellite project that may one day compete with Starlink. Though, this seems to be likely to take years before bringing the desired outcomes, after years of stagnation and convoluted bargaining between the European space firms.
Easing the discourses, geared towards “Project Bromo,” has been inspired by the MBDA model, a successful joint venture in the missile industry of Airbus, BAE Systems, and Leonardo. During this model is being proposed and implemented, it is quite possible that the mechanics of the governance are somewhat different because each company is faced with the mechanics of harmonizing interests and getting around political issues of cost cutting in a multi-nation entity in Europe space sector.
