Airbus, Leonardo, Thales moving towards joint space firm

European aerospace firms Airbus, Leonardo and Thales could seal an accord this year to set up a joint satellite enterprise, a senior Airbus official told Corriere della Sera daily in an interview published Sunday.

Under "Project Bromo," named after an Indonesian volcano, the three firms want to set up a satellite production entity to rival Elon Musk's SpaceX and meet the shift in the market towards cheaper low-orbit satellites.

Roberto Cingolani, head of Italy's Leonardo aerospace and defence giant, said in June that an accord could be made by July, but the deadlines have been pushed back.

Michael Schoellhorn, chief executive of Airbus Defence and Space, told Corriere della Sera he expected a deal to be signed this year.

"We are on the right path but there are still aspects to clear up before such an important step," he said. Schoellhorn blamed the national and transnational "complexities" of the negotiations for the delay, especially for satellites.

Cingolani said the new European firm would offer production and launch services to military and civilian clients.

Reuters reported in June that Leonardo and Thales were considering merging their current joint ventures – Thales Alenia Space and Telespazio – into the new entity.

A person familiar with the matter said the venture was likely to be based in Toulouse, France, where Airbus is based, while noting such details were subject to final negotiations.

(With input from agencies)