Xtar, a satellite communication provider based in the US, sold the firm’s only satellite to Hisdesat. However, Xtar signed a pact that enabled it to retain an equal amount of capacity on the sold satellite, according to Jay Icard, The firm’s chief executive.
The companies mentioned the remodelling of the organizational structure due to the anticipated changes in future business models. The decision comes before Hisdesat’s plan to launch two satellites in 2023 and 2024.
Icard further mentioned that the company would advance in offering services regardless of the sale of the satellite. The Xtar-Eur contract, together with the current lease with Hisdesat, provides the firm with a substantial ability to further its operations until it gets stalled by the multibillion-dollar SpainSat NG System. Xtar currently utilizes Airbus’ satellites built for SpainSat NG system through its Memorandum of Agreement with Hisdesat.
Additionally, Icard compared the similarity of Xtar to other satellite communications provider companies where ownership dwells on a single firm. However, the respective company depends on the expertise and information from the companies with which it has a lease contract. The companies then focus on the state government and the Department of Defense.
Conversely, the deal would not entail a change in orbital slot possession. It is due to the variation in slots of the two companies. Hisdesat uses a slot issued by the Spain government, which exhibits massive differences with Xtar, a US-based firm.
According to Hisdesat’s CEO, Garcia Primo, the company’s possession of Xtar-Eur will allow it to rationalize decisions regarding its fleet’s longevity. He further stated the need to offer efficient services to clients and integrate operations of Xtar-Eur and SpainSat satellites. Besides, Hisdesat plans on commencing the extension plan with the recently acquired satellite from Xtar. The programs are under discussions with Northrop Grumman Company since it is an established firm.
Loral Company’s hesitation in providing further funding for Xtar propagated Hisedat’s need to salvage the company and work multilaterally to secure a much better satellite communication domain.
Despite the coronavirus pandemic, Hisdesat announced its regular schedule in launching its first satellite in 2023. However, he projected the possibility of a delay on the subsequent satellite launch if the initial launch takes a considerable amount of time.
In conclusion, Xtar’s decision to sell its satellite conveys the firm’s possibility to grow more due to financial stability. The company’s ability to provide services to its clients indicates a retained level of dominance in its operations.