ESA Mechanism to Boost Space Industry Amid Economic Pressure

The European Space Agency introduces measures to accelerate payments to the space industry due to job cuts and financial challenges, with increased oversight. ESA Director General Josef Aschbacher aims for quicker contract payments and careful scrutiny of costs and schedules amid intense global competition.

The European Space Agency (ESA) unveiled strategic measures on Thursday aimed at expediting payments to the space sector. This move comes in response to mounting job cuts and economic strains, and introduces enhanced scrutiny following several cost overruns and project delays.

ESA Director General Josef Aschbacher outlined the plan after a council meeting of the 22-nation agency, one week post-Airbus's announcement of 2,500 job cuts, primarily in its satellite division. Aschbacher emphasized the importance of profitability, highlighting recent developments at Airbus Defence and Space alongside Franco-Italian competitor Thales Alenia Space.

The initiative proposes increased downpayments on new contracts and quicker release of progress payments, reducing dependence on the completion of all development milestones. This comes alongside heightened oversight via a newly established Independent Project Management Authority dedicated to scrutinizing cost, schedule, and content for realism.

(With inputs from agencies.)