Chris Jasper/LONDON

Boeing, Lockheed Martin and Loral have emerged as potential partners for Finmeccanica's Alenia Spazio operation, which has failed to agree terms for entry into Europe's Astrium despite over a year of negotiations. Alcatel remains an alternative partner, although it may have the wrong business profile for a deal to work.

Finmeccanica senior vice president strategic finance Alberto de Benedictis says Astrium - formed from Matra-Marconi Space and the former DaimlerChrysler's space arm - remains a "primary focus" of talks, but reveals negotiations are also ongoing with the three US companies.

"We have long-standing negotiations with Astrium but have come to no final conclusion," he says. "We are looking at alternative opportunities as well. The market is moving and we have to move with it." Benedictis says Alcatel is a contender but may be "too telecoms oriented", and that a decision is due "early next year at the latest".

Alenio Spazio is regarded as an attractive partner because of its expertise in three niche areas, rather than its size. A European leader in broadband technology, it is already linked to Boeing via the airframer's Connexion in-flight communications and entertainment project, for which it will provide satellite transponder capacity, conduct aircraft modifications and support service roll-out. The Italian company is likewise partnered with Loral on various satellite programmes.

Alenia Spazio is also targeting navigation systems as a future niche. Via Galileo Industries (together with Astrium and Alcatel Space) is bidding to be a prime contractor in Europe's Galileo satellite navigation project (rival to the US GPS). A third speciality is Earth observation systems, including environmental monitoring and intelligence gathering.

Giuseppe Bono has been appointed director general of Finmeccanica, with day-to-day operational control and oversight of central functions and business units. Chief executive Alberto Lina becomes president, taking charge of strategy, alliances and acquisitions and disposals.

Source: Flight International