ESA to Expedite Payments Amid Space Industry Crisis

The European Space Agency plans to accelerate payments to the space industry to address job cuts and enhance project oversight. New financial measures include faster downpayments and progress payments, coupled with increased scrutiny through an Independent Project Management Authority. Airbus and Thales face financial challenges and industry competition.

The European Space Agency (ESA) announced initiatives to hasten financial aid to the space sector amid significant job reductions. The strategy responses to cost overruns and project delays aim to stabilize the industry.

ESA's Director General, Josef Aschbacher, outlined the changes following a council assembly of the 22-nation consortium. The move comes shortly after Airbus disclosed plans to reduce its workforce by 2,500, primarily targeting its troubled satellites division.

To assist, ESA intends to increase contract downpayments and expedite progress payments, sidestepping the often prolonged completion of development milestones. However, this support is coupled with the formation of an Independent Project Management Authority to ensure robust preparation of new initiatives.

"In space technology, unpredicted situations rapidly unfold. We're stressing a conservative approach to planning for cost and schedule precision," Aschbacher elaborated, acknowledging the global competition pressures from low Earth orbit constellations like SpaceX's Starlink.

Airbus has experienced approximately €1.5 billion in losses from satellite manufacturing, attributed largely to its OneSat program, but also involving ESA projects like EGNOS and parts of the Galileo system.

Airbus's further details on job and structural adjustments are anticipated in December. Simultaneously, Thales is negotiating with unions about eliminating 1,300 positions in its struggling space sector.

(With inputs from agencies.)