Airbus Hires Morgan Stanley To Fastrack Solar Drone Program Spinoff

  • Airbus SE EADSF EADSY weighed spinning off its high-altitude drone program Zephyr to accomplish standalone telecom and earth observation business likely to start commercial operations by 2024.
  • The European aerospace and defense group roped in Morgan Stanley MS to seek external partners to help accelerate the commercialization of the crewless, solar-powered Zephyr aircraft, which operates at the edge of space, Financial Times reports.
  • Samer Halawi, in charge of the Airbus program, said the Zephyr was "now at a final design stage." The company was "ready to monetize this aircraft" and build a "full business" around it, he added.
  • Zephyr uses solar panels to fly and recharge its batteries and engineers from the defense group Qinetiq initially designed it.
  • The Zephyr has a wingspan of 25m but weighs just 75kg.
  • Zephyr can fly at an altitude of around 70,000 feet at the edge of space in the stratosphere above weather and commercial planes but below conventional satellites.
  • The business, which will operate under the brand name "Aalto," negotiated with various commercial customers and potential strategic partners.
  • Airbus aimed to maintain ownership in Aalto, where the Zephyr program resides, but explore external investment to drive the company's objectives.
  • The high-flying, solar-powered drones beat conventional satellite performance, including lower costs and greater flexibility.
  • Zephyr plans to set up "Aalto ports" globally at 5 or 6 locations, including in the U.S. and the Middle East.
  • Zephyr currently has ten aircraft at its site in Farnborough in the U.K.
  • Popular tech companies aborted their drone projects in 2022 in response to macro headwinds.
  • Last year companies like Snap Inc SNAP aborted the development of its Pixy flying selfie camera less than four months after launching the product publicly.
  • In 2022, Meta Platforms, Inc META quietly reabsorbed the resources of its "Connectivity" division
  • Price Action: EADSF shares closed at $129.31 on Friday.
  • Photo via Company
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