AIRBUS - 2020 Universal Registration Document
1. Information on the Company’s Activities / 1.1 Presentation of the Company
Space Systems Commercial Sector: Telecommunications Satellites, Launch Services
by the European Union on 11 December 2017 are also clear signals in this direction. During the Franco-German Defence and Security Council in October 2019, France and Germany committed to strengthen their cooperation. Subsequently, the two countries signed the Phase 1A of the demonstrator phase in early 2020, while Spain joined the programme at the end of the year. Airbus military aircraft such as A400M, MRTT, Eurofighter and other Airbus manned and unmanned platforms will play key roles in the FCAS ecosystem. Competitors The market for military aircraft is dominated by large- and medium-sized American and European companies capable of complex system integration. Among the competitive factors are affordability, technical and management capability, the ability to develop and implement complex, integrated system architectures. In particular dedicated mission aircraft, such as heavy tankers, are derived from existing aircraft platforms. Adapting themrequires thorough knowledge of the basic airframe, which generally only the aircraft manufacturer possesses, along with systems architecture and systems integration. The skills necessary for the overall systems integration into the aircraft are extensive and the number of players in the world market is very limited. The main competitors in military transport and mission aircraft include Boeing, Embraer, Lockheed Martin, Northrop Grumman, Dassault Aviation, Leonardo, UAC, Kawasaki, AVIC and Antonov. Heavy military transport has historically been driven by US policy and budget decisions and has therefore been dominated by US manufacturers and split in strategic and tactical aircraft segments. The A400M represents the Company’s entry into this market, at a time when nations are expected to begin replacing their existing eets. The aircraft is designed to disrupt the divide between strategic and tactical transport by offering both capabilities in one. This saves both time and cost as you can y a long range strategic aircraft into a tactical zone of operation. In terms of revenues, Airbus Defence and Space is the largest continental European combat aircraf t manufacturer. The major combat aircraft activities are taking place through the contribution to the Eurofighter Typhoon programme jointly with the consortium partner companies BAE Systems and Leonardo. Competitors in the segment of combat aircraft include Boeing, Dassault Aviation, Lockheed Martin, Saab and UAC. Eurofighter is a key asset and a capability bridge to FCAS. Market Trends The sale of aircraft is expected to remain stable in the transport and special mission aircraft segments and could grow for the heavy transport segment, where the A400M occupies a unique position. After-sales services are an important business for Military Aircraft and are undergoing strong growth in line with the deliveries of A400M and A330 MRTT on top of the existing robust revenue stream associated with Eurofighter in-service support. For FCAS, main achievements were the successful delivery of a joint industrial proposal to the governments of France and Germany for the first Demonstrator Phase (Phase 1A) of the programme and the completion of the Joint Concept Study tranche one with the industrial on-boarding of Spain towards the end of 2020.
The commercial telecommunication satellite market is highly competitive – with customer decisions primarily based on price, technical expertise and track record. The main competitors for telecommunications satellites are Boeing, Lockheed Martin, MAXAR and Northrop Grumman in the US, Thales Alenia Space in France and Italy and CASC in China. The downturn in the market for commercial geostationary telecommunications satellites over the past years is now showing clear signs of recovery. In parallel, the demand for large constellations of smaller telecom satellites in Low Earth Orbit (LEO) has increased in the last few years. The business model is challenging due to the high upfront CapEx. Airbus is active in this market including direct involvement in the Airbus OneWeb Satellites joint venture and taking the lead on an EU constellation study. Five years ago, Airbus OneWeb Satellites was created, an equally owned joint-venture between Airbus and OneWeb, which is building a global high-speed internet constellation of satellites for its sole customer OneWeb. This participation is entrepreneurial in nature and led to a full re-think of satellite design and production to produce at costs and on relatively short timelines. The first six satellites were launched in 2019 enabling validation of the design. 2020 was a turbulent year for OneWeb as it entered and then emerged from a Chapter 11 filing with new owners: the Indian Bharti Group and the UK government. Launches continued during 2020 with 110 satellites now in orbit. 2021 should see the Airbus OneWeb Satellites facility continuing production so that OneWeb can start operations at the end of the year and complete the constellation as scheduled in 2022. With the new Bartolomeo Service, Airbus also offers one-stop- shop access to ying payloads in Low-Earth Orbit on the outside of the International Space Station, which means easy access to Space for both commercial and institutional customers. The market for commercial launch services continues to evolve with ongoing competitive pressure. Arianespace (a subsidiary of ArianeGroup) provides a complete range of launch services with the Ariane, Soyuz, and Vega launchers. Competitors for launch services include SpaceX, ULA and CGWIC. The accessible market to Arianespace for commercial launch services for geostationary satellites is expected to be at around 15-20 payloads per year, decreasing both in mass and in number of launchers compared to the equivalent market back five- six years ago. The commercial market also sees the rise of large constellations for global connectivity, with the ramp-up of OneWeb and other new projects both in the US and in Europe. Governmental Sector: Satellites, Space Infrastructure, Launchers, Deterrence In the public market for Earth Observation (EO) and navigation satellites, competition in Europe is organised on a national and multinational level, primarily through the European Space Agency (ESA), the European Commission (EC) and national space agencies. Space Systems is the recognised European leader on ESA science programmes and a major player in the EO segment, onboard all 12 present and future Copernicus environment missions.
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Airbus / Registration Document 2020
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