Transport

Airbus, Safran team up for joint venture in space launchers

Move aims to protect Europe’s commercial access to space from US-based SpaceX

Jean-Paul Herteman, chief executiveof Safran, arrives at the Elysee Palace to attend a meeting with French president Francois Hollande. Airbus Group and Safran are to boost co-operation with a joint venture in space launchers, aiming to galvanize Europe’s competitive response to US low-cost rival SpaceX. Photograph: Philippe Wojazer/Reuters

Mon Jun 16 2014 - 09:43

Airbus Group and Safran have agreed to create a 50-50 joint venture in space launchers, combining Airbus's launch systems with Safran's propulsion systems, to help to compete with new low-cost rivals.

The move is designed to protect Europe's commercial access to space in the face of competition from US-based competitor Space Exploration Technologies (SpaceX), top officials of both companies said after meeting French president Francois Hollande.

It is the first concrete step towards consolidation in the sector after Airbus group chief Executive Tom Enders called in a Reuters interview last month for a radical overhaul of complex private-public partnerships and a bigger say for industry.

"It is Europe's response to SpaceX. It strengthens the future of Ariane," Jean-Yves Le Gall, president of France's CNES space agency, said after taking part in Monday's talks.

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Airbus and Safran shares were both up around 0.4 per cent, while the CAC40 index was down 0.2 per cent.

Reuters reported the move towards closer industrial co-operation yesterday.

The partners said the venture would accelerate entry-into-service of a new Ariane 5 ME launcher and propose an agreed configuration for the next-generation Ariane 6 launcher, which has seen differences between France and Germany over design. (Reuters)

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