Space, PNRR, and competition: “It is a moral duty to be ready.” Interview with the new CEO of Thales Alenia Space, Giampiero di Paolo

The newly appointed CEO reviews the most promising programs for Thales Alenia Space in recent years, from
constellations to new businesses in orbit and beyond.

By EMILIO COZZI

The major institutional contracts, which still form the backbone of the space economy, are
achievements – trophies – that Thales Alenia Space has been amassing for quite some time.
Giampiero di Paolo, the new CEO of the Italian division of the joint venture between Leonardo
(33%) and Thales (67%), believes we must look beyond to seize a market that has now opened
wide. Graduated in Electronic Engineering from Sapienza University of Rome, Di Paolo has led the
Earth Observation and Navigation domain of Thales Alenia Space Italy since 2019 and previously
headed the Telecommunications domain for three years.

In sports terms, he would be referred to as a talent nurtured in TASI’s training ground, having
contributed to strategic programs such as Copernicus and Galileo. He views this as an era of
opportunities, starting with those born from the PNRR (National Recovery and Resilience Plan),
which will fuel innovation and commercial momentum. Thales Alenia Space Italy is aiming for the
Moon but maintains a clear focus on Earth’s orbit.

Let’s start from the end, or rather, a new beginning: what are the immediate and priority goals of
Thales Alenia Space Italy?

“We have many projects underway. While I do not give any specific priorities, I must admit that
today something has changed our vision of the future: it is the PNRR, undoubtedly a great boost
for our company in several areas. To mention a few, I would start with the IRIDE constellation: we
currently have contracts for twelve satellites—six radar and one optical satellite, with an option for
an additional group of satellites. Together, they will complement all the existing assets. At the
moment, our contribution to IRIDE involves satellites of approximately 200 kilograms, capable of
providing high-quality services. And, thanks to the constellation’s low revisit time, it allows assets
to pass over the same area in sequence, thanks to their number. This way, it is possible to provide
timely information on the changes in the observed area. This is fundamental for what we call
‘maritime surveillance,’ coastal monitoring, climate change, and modifications of certain areas due
to the climate. Along with the data we already have from our operational satellites, such as
Cosmo-SkyMed, we will have a complete overview of what is observed from space.”

What else?

“Staying within the scope of what is made possible by the PNRR, we cannot ignore the Space
Smart Factory—a project co-financed with 100 million euros, involving TASI and the Italian Space
Agency, through the funds of the National Plan. Part of a network of interconnected space
factories based in Italy, the Space Smart Factory will leverage advanced technologies to produce
satellites of various classes and applications. It is a great opportunity for our company and for the
many businesses in the supply chain. We will build an imposing facility just a few kilometers from
our Roman headquarters at the Tiburtino Technopole. It will embody a new concept of both
industry and the way we integrate and test satellites, and it will be a so-called ‘smart factory,’
where the quantity and quality of artificial intelligence will make a significant difference compared
to all other companies active in this sector today. Our goal, once fully operational, will be to build
two satellites a week, as throughput, meaning as the input-output of satellites.”

And looking to the future in orbit?

“Opportunities abound there as well. We are focused on in-orbit servicing, an area where Thales
Alenia Space has signed a crucial contract with the Italian Space Agency, as this too stems from a
new conception of access to space. It means using our space infrastructure not only to provide
the services we have been accustomed to for decades but also for operations such as repairing
and refueling assets in orbit. As I said earlier, I don’t set any specific priorities; for us, everything is
a priority, but the PNRR has given us a strong boost. For example, we are also working on the
Axiom module, another essential collaboration for TASI that will create the commercial part of the
International Space Station. As is well known, the ISS will soon be decommissioned, but with the
Axiom modules, we will remain in orbit, where we will also operate with the Leo cargo return
service, responsible for ensuring our activities with the Low Earth Orbit Station, allowing us to
return after cargo operations.”

Let’s go further, towards the Moon.

“It is another significant milestone—not to colonize, but to learn how to exploit extraterrestrial
resources and integrate them into our ecosystem. Today, we are contributing significantly to the
Artemis program: we are working on several modules for the Lunar Gateway, the station destined
for cislunar orbit. We are also working on the navigation system around the Moon. Additionally, we
are part of the Moonlight project, providing the navigation system for astronauts operating on the
lunar surface. We are called upon to enable the service of a very complex machine, similar to our
GPS. These examples alone make it clear that the Moon represents a frontier science for us,
capable of pushing us beyond the imaginable. Soon, we will consider the Moon an integral part of
our lives, not something distant that we visit occasionally.”

This government has also shown particular sensitivity to space activities. Within the next two or
three years, Italy will invest more than 7 billion euros in the sector. Is there a risk of inflating a
bubble?

“The question is pertinent, timely, and encourages reflections that we have actually been making
for some time. My response is that I am happy to be part of an important company in a country
that I consider great because it is often capable of preventing or successfully addressing crises
and difficulties. To be more precise: I do not believe that the space sector is a bubble. Thanks to
the PNRR, we have developed infrastructure and built satellites and technologies that are very
attractive to the market. Soon, we will have a design, production, and testing system capable of
producing satellites perfectly suited to the needs of a new market. Better yet, we will be exactly
where the market is headed, and I am confident that we will make our voice heard strongly.”

So, once the PNRR is over, do you believe our space ecosystem will be self-sustaining?

“To answer precisely, I would have to disclose details covered by confidentiality, but it is no secret
that Thales Alenia Space has entered the commercial market strongly, partly thanks to the PNRR.
Now, the Italian supply chain that has contributed significantly to the Plan will be able to develop
and sell products on its own for those who require them. Everything we have done and are doing
in these years will have commercial and industrial impacts. Here’s one example: if we qualify a
company specialized in printed circuit boards by incorporating it into our production chain, thanks
to us, that company will be able to sell its products on different markets as well. It is a virtuous
process that not only fuels the economy and the space ecosystem. For this reason, I reiterate that
I do not believe we are inflating a bubble. I am also convinced because of my trust in Italian and
European institutions: we will make the most of the opportunities of these years.”

Yet, in France, two scoops from La Tribune have highlighted several critical issues. It seems that
Thales and Airbus want to withdraw from the consortium for the development and
commercialization of the new European constellation Iris². But more significantly, the space
sectors of Thales and Airbus do not seem to be in great shape, unlike Thales Alenia Space Italia.

“Thales Alenia Space is adapting to improve its competitiveness in a profoundly transforming
space market, so as to maintain its position among the world leaders in this sector. The market for
commercial geostationary satellites for telecommunications is struggling. For Thales Alenia
Space, there is a plan, particularly designed to retain skills within the Thales group. I will only
speak about Thales, as I know that workers who currently lack a position will be relocated within
the group; there won’t be any repercussions for their families. The rest should be evaluated in the
broader context of the market, a scenario that we, as companies and as a sector, are well-
equipped to handle. Certainly, I do not rule out some changes. France, for instance, is highly
linked to the telecommunications market, but this is an issue we will address together. We are part
of the same company.”

Speaking of the international landscape: for a company like Thales Alenia Space, what are the
challenges, including from a (geo)political perspective?

“We must ensure that the relationship within the institutions remains strong. A significant portion
of our revenue comes from agencies, namely the Italian Space Agency (ASI) and the European
Space Agency (ESA). I want to take this opportunity to particularly thank ASI, which is doing a lot
for the sector, for Italy, and for Thales Alenia Space. And also ESA, with whom we are working on
the Copernicus program: Thales Alenia Space Italia is the prime contractor for two missions, while
Thales Alenia Space France is the prime contractor for a third; we are also providing payload
contributions for two other missions. This means we play a substantial role in five out of the six
upcoming missions.
For this reason, in response to the question, I believe that Europe today plays a fundamental role
in driving industry, conserving our planet, technological innovation, and employment. And we, as
Thales Alenia Space, must ensure that ESA continues on this path. The Ministerial Council of
2025 is approaching: we must face it well to ensure that all our products are truly useful for both
technological development and the population. These are our political challenges: working with
Europe and for Europe.”

The rise of private players in this context, especially SpaceX, which now almost monopolizes
some segments, is it a threat to Thales Alenia Space?

“On the contrary: commercial competition is always an opportunity. We must not deceive
ourselves into thinking that we operate in a system where everything is granted to us just because
we are, or were, the best in the world. The fact that today SpaceX has a monopoly on access to
space can only push or motivate us to improve. I believe that Europe is already doing this: the
launch of Ariane 6 last July is a good indicator of its return to the market. The same will apply to
Vega C.
That said, I am also proud to recall that in the past, when Thales Alenia Space faced the market, it
was second to none. Recently, we signed significant contracts with Korea, where our American
competitors were particularly aggressive and had been established in the territory for over ten
years.
And still, challenges stimulate us: they compel us to review our cost structures and our industrial
organization, and they encourage us to consider that another SpaceX or another innovator may
arrive tomorrow. It is our moral and professional duty to be prepared.”