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Airbus Considers Selling US Space Division to Focus on European Satellite Manufacturing, Counter SpaceX and Chinese R...
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Airbus is exploring the sale of its US space business, a move aimed at focusing on core European satellite manufacturing capabilities and responding to increasing market pressure from SpaceX and Chinese competitors. According to a report by the Financial Times on August 29, the Franco-German aircraft manufacturer has begun evaluating potential buyers' interest in acquiring its US space division. This business unit includes a factory on Merritt Island, Florida, and the Arrow series of small satellite product lines. These satellites can be mass-produced to serve commercial and government communications, Earth observation, and even national security needs.
Sources familiar with the matter revealed that Airbus gained full control of the satellite manufacturing company in 2024 by acquiring the remaining 50% stake in the joint venture Airbus OneWeb Satellites (AOS). The joint venture, established in 2016, primarily built satellites for UK-based OneWeb's first-generation low Earth orbit satellite constellation and has delivered over 600 units. The US space business potentially being sold is estimated to have annual sales of hundreds of millions of dollars, with its Florida facility employing more than 200 people.
This divestiture plan is closely tied to Airbus's strategy to shift satellite production back to Europe. In recent years, the company has transferred some OneWeb satellite orders to its Toulouse factory in France, describing the move as 'another step for European sovereignty.' The orders come from French satellite operator Eutelsat, which acquired the restructured OneWeb in 2022. Airbus employs approximately 11,000 people globally in space-related businesses.
Airbus is currently working to reverse the financial difficulties faced by its space division. In 2024, the company booked charges of up to β¬989 million for this business. In February 2025, Airbus took an additional charge of β¬300 million, bringing the total charges related to its 2024 space business to approximately β¬1.3 billion, highlighting the urgency of its business adjustments.
Meanwhile, Airbus is driving a major integration plan for the European space industry. In October 2025, the company reached an agreement with Italy's Leonardo and France's Thales to merge their respective businesses, ranging from satellite manufacturing to space systems and services. The integration plan, codenamed 'Bromo,' aims to create a pan-European leader in the satellite sector to better compete with Elon Musk's SpaceX and Chinese peers.
Under the plan, the three parties expect to submit the merger proposal to EU antitrust regulators in the second half of 2026, with the goal of having the new joint entity operational by 2027. Sources stated that Airbus's evaluation of the US space business has been ongoing for some time, and the sale plan is unrelated to remedial measures proposed to satisfy regulatory requirements for the 'Bromo' merger project. This series of moves clearly indicates that Airbus is reshaping its competitive position in the global space industry through strategic contraction and internal European integration.
