By John Q. Hosedrinker 
In an effort to create a leading European player in space, Airbus, Leonardo, and Thales have announced a joint venture that will combine their satellite and space activities. This new entity will develop comprehensive technologies and end-to-end solutions, with Airbus holding the majority stake. The aim of this combined venture is to compete globally and provide a European alternative to companies like Starlink while also serving as a trusted partner for national space programs. The collaboration is a response to the growing global space market.
Read the original article here
Defense giants Airbus, Thales, and Leonardo have announced a space merger, aiming to create their own version of Starlink. It’s a bold move, no doubt, but the immediate question that springs to mind is how they plan to pull it off without their own cost-effective launch capabilities. They’re essentially trying to build a Starlink rival, but without the crucial element that makes Starlink so dominant: SpaceX’s capacity to launch rockets and satellites at an unprecedented scale and cost. The economic viability here hinges on their access to affordable launches. If they’re dependent on other companies or the European Union for launches, the economics get tricky, fast.
How does the fact that SpaceX has a massive advantage in rocketry play into this? SpaceX, for better or worse, has revolutionized space access. They can launch rockets and deploy satellites with incredible efficiency, making them the undisputed leaders in the current space race. This efficiency is critical for Starlink’s success. It allows them to quickly build out their constellation, constantly updating and replacing satellites, and provide service at competitive prices. The merger of Airbus, Thales, and Leonardo is aiming to challenge this, but the launch infrastructure is going to be a huge hurdle.
The worry of generating even more space junk is valid. We’ve got a lot of stuff already orbiting the Earth. As more satellites go up, the potential for collisions and the creation of more space debris increases. It’s a serious concern, leading to fears of Kessler Syndrome, a runaway chain reaction of collisions that could render low Earth orbit unusable. It’s important to remember that reusable rockets help mitigate this issue. SpaceX’s Falcon 9, for example, is reusable, reducing the amount of debris from rocket stages. However, Europe and China lag in this area, potentially creating more long term risks, and that doesn’t mean less junk will be created.
Will this be a joint venture? We’re talking about a collaboration between massive defense companies. It could be a full merger, or they might form a joint venture to pool resources. Airbus already has significant experience in space, with advanced satellite manufacturing facilities in the UK and France, and has built communication and weather satellites for decades. They’re not new to the game, but the challenge is scaling up and competing with SpaceX’s launch capabilities.
Now, a lot of comments focus on launch costs, and it’s understandable why. SpaceX’s costs are incredibly competitive. The pricing difference between SpaceX’s Falcon 9 and the Ariane 6, the European launch vehicle, is significant. The Ariane 6 simply can’t match SpaceX’s reusability and launch tempo. SpaceX launched over a hundred rockets last year; the EU’s launch program has been struggling with this pace. SpaceX is talking about nearly daily launches. This discrepancy in launch frequency and cost poses a major challenge for the Airbus, Thales, and Leonardo endeavor.
What do you make of the competition? The idea of a Starlink competitor is interesting. Competition is good for consumers, and it could drive innovation and potentially create a space race. It would also be good to have alternatives to any one tech giant, particularly one that has a controversial leader. But the odds are stacked against them. If they can’t beat SpaceX on launch costs and speed, their business plan is going to struggle to generate returns.
There’s also a question about regulation and orbits. SpaceX already has approval for a massive number of satellites in the most optimal orbits. Space is big, yes, but having the best orbits is crucial. While other orbits are available, they might not be as efficient or offer the same performance. The Europeans and their allies need to move fast if they want to get in position, however they have a massive uphill battle.
Is there a ticking clock in terms of space debris? There are international agreements about orbital bands, but there’s no clear consensus on what the absolute limit is. Satellite operators need to be responsible and manage their satellites’ end-of-life effectively. Starlink satellites operate at a low altitude and are designed to deorbit relatively quickly. This is important to reduce the risk of creating long-term space debris.