Elon Musk's SpaceX Faces New Rival? Airbus' AALTO Reportedly Unveils High-Altitude Drones In Kenya

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Zinger Key Points
  • Airbus' AALTO to start Kenyan operations with Zephyr drones, aiming for Q3 service launch and 1,000 jobs creation.
  • AALTO's drones offer a unique low-altitude solution for mobile connectivity and earth observation, challenging SpaceX's model.
  • Benzinga shares with you top insiders news

A subsidiary of Airbus SE EADSY EADSF is reportedly advancing in the development of high-altitude, solar-powered drones designed to provide communication services. 

The company aims to establish its first hub in Kenya, preparing to initiate commercial operations, according to a news report by Bloomberg.

Unit AALTO HAPS Ltd. plans to deploy its Zephyr aircraft, capable of remaining airborne for days, from four or five global bases, beginning with Kenya, as per the unit's CEO, Samer Halawi, in a Nairobi interview, Bloomberg noted.

Also Read: Airbus Secures Major A320neo Order From SMBC Aviation Capital, Strengthening Long-term Strategic Partnership

"We're going to be providing more connectivity, mobile connectivity and earth observation services from an altitude or an orbit or frontier that has never been explored before," Halawi said, referring to stratospheric range, about 20 kilometers above Earth, the report added.

AALTO's Zephyr operates at a lower altitude compared to satellite networks like Elon Musk's SpaceX, which function in low Earth orbit at about 550 kilometers above Earth, the note read. 

Its capabilities extend to detailed remote observation, with a zoom precision down to 7 inches and the ability to instantly transmit video and images. 

Also See: Could SpaceX's Sky-High Valuation Come Back Down To Earth? Musk-Led Company Plans To Sell Shares Valuing It At $150B ... Again

This functionality enables governments to effectively monitor situations like forest fires, protests, border security, and other security concerns. Furthermore, the establishment of the company's first Kenyan base is projected to generate up to 1,000 direct and indirect jobs, the Bloomberg report added.

AALTO's Kenyan operations are set to commence at the start of the next year, with plans to begin serving customers from the third quarter, the report read. 

AALTO has engaged with local telecommunication firms, Safaricom Plc and Telkom Kenya Ltd., to discuss providing connectivity to approximately 3% of Kenya, focusing mainly on remote areas, it added.

Read Next: Are Apple & Paramount Teaming Up? Potential Bundle Deal Could Shake Up Streaming Wars

Price Action: EADSY shares are trading higher by 1.02% to $37.55 on the last check Friday.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

Photo Via Airbus

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