Yahsat Partners with Airbus for LEO and GEO Satellite Orders Worth $1.1 Billion

Yahsat, the Emirati operator, has inked a significant deal with Airbus for the procurement of both low Earth orbit (LEO) and geostationary orbit (GEO) satellites in a strategic move to bolster its satellite fleet and expand its service offerings.

The announcement, made on June 10th, unveils Yahsat's ambitious $1.1 billion program aimed at enhancing its broadband capabilities.

The agreement entails the acquisition of a pair of LEO satellites from Airbus, a decision aligned with Yahsat's vision of diversifying its satellite solutions for customers. These LEO satellites will be constructed based on the Arrow platform, a satellite architecture developed by Airbus, derived from the successful collaboration with OneWeb's broadband constellation.

“Yahsat’s future direction of providing multi-orbit satellite solutions to its customers.” - Yahsat CEO, Ali Al Hashemi,

The collaboration between Yahsat and Airbus extends beyond LEO satellites. Thuraya, a subsidiary of Yahsat, also announced a procurement contract with Airbus for the Al Yah 4 and Al Yah 5 GEO satellites. These satellites, based on Airbus' Eurostar Neo platform, are slated to replace Yahsat's aging Al Yah 1 and Al Yah 2 satellites, facilitating enhanced government communications across regions spanning the Middle East, Africa, Europe, and Asia.

The UAE government's commitment to purchasing $5.1 billion worth of broadband services from Yahsat underscores the strategic importance of these satellite acquisitions. This substantial investment underscores the critical role Yahsat plays in providing essential communication services to a wide array of stakeholders.

Furthermore, Yahsat's foray into Earth observation and direct-to-device satellite connectivity markets, signifies the company's strategic diversification efforts and its readiness to capitalize on emerging opportunities in the industry.

The recent approval of a merger between Yahsat and UAE-based geospatial intelligence provider Bayanat, slated to conclude later this year pending regulatory approvals, further underscores Yahsat's strategic positioning for future growth and expansion.

Yahsat's investment in Astrocast, a Swiss LEO operator focusing on satellite connectivity for Internet of Things (IoT) devices, demonstrates its commitment to exploring innovative solutions and partnerships to meet evolving market demands.

Looking ahead, Yahsat anticipates significant revenue inflow from its broadband services, with an estimated $1 billion expected in 2024 alone.

This revenue projection closely aligns with the company's planned expenditure on the Al Yah 4 and Al Yah 5 spacecraft, along with associated ground segment infrastructure, launch, and insurance costs.

Airbus' involvement in the construction of Thuraya 4 GEO satellite further solidifies its partnership with Yahsat. With SpaceX slated to launch Thuraya 4 later this year, Yahsat aims to commence its mobile connectivity services by the second half of 2025.