Airbus Sees Broad Benefits from Satellite Joint Venture

FARNBOROUGH, London--The head of Airbus SE's EADSY -1.10% defense and space business anticipates major long-term benefits, including possibly Pentagon contracts, as a result of implementing a high-volume automated production system for small satellites. Dirk Hoke said the production and quality-control changes--under way as part of a joint venture with Internet services provider OneWeb--will position Airbus to churn out less-expensive spacecraft using fewer workers and less testing than with traditional factory practices. Airbus officials previously highlighted expected financial gains stemming from assembling up to two satellites a day at the comparatively low cost of $1 million each. But Mr. Hoke's comments at the international air show here Monday were the most specific yet about the project's positive effect on internal industrial processes, as well as on the general approach of Airbus engineers. Committing to assemble a new generation of lightweight satellites primarily using robots "was a game-changer for us," Mr. Hoke said.