Airbus CEO Addresses Space Division Losses as ‘Unacceptable’

Airbus CEO Guillaume Faury has delivered a forthright message to employees, labeling the recent losses in the company’s Space division as “unacceptable”. This comes after Airbus, Europe’s leading aerospace corporation, reported unexpected charges amounting to €300 million ($320 million) due to issues with its satellite programs, including the commercial telecoms OneSat family, according to industry insiders.

During a January review reflecting on 2023, Faury highlighted that despite strong performances in many sectors, the Space business encountered significant challenges that adversely affected Airbus’s overall achievements. “The occurrence of such unexpected and significant setbacks cannot be tolerated within Airbus,” he stated, pointing out the need for enhanced risk management and accountability within the company.

Airbus, which is set to announce its earnings report, has remained tight-lipped about internal communications. However, Faury’s comments reveal a push for a cultural shift within the company to align actions and declarations, especially crucial for a publicly-listed entity at the forefront of aerospace and defense.

In response to these challenges, Airbus has initiated a reorganization within its Defence and Space division, breaking it down into three focused segments: Air Power, Space Systems, and Connected Intelligence. This restructuring aims to improve oversight and risk handling, showing promising early outcomes.

Furthermore, changes in leadership are on the horizon, with Jean-Marc Nasr set to be succeeded by Alain Faure as the head of Space Systems in March, a move that aligns with Airbus’s strategy to bolster its space sector’s competitiveness.

This strategic shift comes amid growing competition from industry giants like SpaceX and the emergence of cost-effective satellite technologies, prompting Airbus to reassess its position and strategy in the space market. Despite these challenges, Faury’s communications underscore a commitment to reinforcing Airbus’s Defence and Space division, crucial for the company’s long-term success.

As Airbus navigates these internal crises and competitive pressures, the aerospace leader’s adaptability and strategic adjustments will be pivotal in maintaining its position at the forefront of the global aerospace and defense industry.

Sources: AirGuide Business airguide.info, bing.com, reuters.com