Eutelsat’s newly appointed CEO, Jean-François Fallacher, speaking at the Paris Air Show, firmly denied that the satellite operator was in financial difficulties.
“Let me correct a misimpression: Eutelsat does not have financial difficulties: No. Eutelsat has a need for financing. There’s a difference,” Fallacher asserted. “We need financing to develop the constellation and continue our growth, which has already started and has been significant, and to conserve this unique strategic capacity.”
“We at Eutelsat provide our OneWeb network in low Earth orbit that is sovereign and European. There is a real appetite for this sovereignty across the industry,” he added.
Indeed, Fallacher emphasized that Eutelsat’s OneWeb mega-constellation is benefiting by being a valid alternate to Elon Musk’s Starlink, noting: “In the world now there are only two broadband [LEO] constellations in service: Starlink and OneWeb. What has happened in Ukraine and the recent statements of Musk, threatening a to stop work on a NASA contract, is an opportunity for us. Here we see what it means that an actor as key as that can threaten to stop service.”
Nevertheless, the need for extra financing is considerable. While there are numerous reports that Eutelsat is looking for around €1.5 billion, this might not be sufficient. It is generally accepted that replenishing the OneWeb fleet of 650 craft will cost much more that €1.5 billion. Then there’s Eutelsat’s commitment to the EU’s IRIS2 constellation which will need an additional €2 billion or so. Additionally, Eutelsat is carrying around €2.7 billion of debt.
