Airbus CEO: SpaceX Model Would Violate EU Antitrust Rules

Faury acknowledged the impressive nature of SpaceX’s accomplishments but emphasized that European companies face restrictive regulatory frameworks that hinder their ability to compete on a similar scale. “Amazing” was the term he used to describe the milestones reached by Elon Musk’s company. However, he pointed out that the “super-concentrated” model SpaceX employs in its production would be restricted under Europe’s current antitrust rules, making it “something we are not allowed to think of,” according to European Interest.

European regulations require that aerospace manufacturing be distributed across several countries involved in funding, resulting in a complex supply chain that slows down production. In contrast, Faury noted, SpaceX retains significant control over its supply chain by manufacturing approximately 80% of its components in-house, a level of consolidation Airbus is unable to achieve due to Europe’s antitrust guidelines. “We make 20%, we buy 80%,” Faury explained, describing a dynamic that is often challenging. According to European Interest, Faury argued that this fragmented approach has created a supply chain “pleasing everybody” except for the companies seeking competitive flexibility.

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Read more: FCC Chair Calls for More Competition to SpaceX’s Starlink Network

This lack of efficiency in the European aerospace sector is evident when comparing Europe’s Ariane 6 launcher, which is partially manufactured by Airbus, to SpaceX’s Falcon 9. The Ariane 6 has yet to conduct its first commercial launch, despite Airbus’ plans to conduct up to ten flights annually. By contrast, SpaceX has nearly single-handedly driven down launch costs, enabling the commercial launch of almost 7,000 satellites to date, a development that has ignited fierce competition within the satellite industry.

Faury warned that Europe risks being left behind in the competitive satellite and launch sectors if regulatory policies do not adapt to current market demands. Airbus is already feeling the pressure, with plans to reduce its workforce by 2,500 jobs in its loss-making satellite division, while Thales, another prominent European aerospace firm, is cutting 1,300 jobs in its own satellite projects.

SpaceX’s influence extends beyond commercial aerospace, as the company has made waves in the military and defense sectors with projects such as Starlink, a satellite constellation system that has transformed global communications and played a strategic role in military planning. NASA has also partnered with SpaceX to develop lunar landing technology, which it aims to deploy within the decade. This relationship could grow further under the incoming U.S. administration, which has shown an interest in expanding the nation’s investment in space technology. SpaceX has even been tapped for work on U.S. government projects, including a reported contract to build a constellation of spy satellites.

Despite these accomplishments, there are concerns within the U.S. government about the lack of competition in the country’s aerospace sector. Both NASA and the Pentagon are reportedly seeking to reduce over-reliance on SpaceX by fostering more competition among American aerospace firms, yet so far, antitrust complaints from SpaceX’s competitors have had little effect.

Source: European Interest