Airbus’ High Altitude Platform Station (HAPS) division has secured funding from a group of Japanese companies.

A consortium of Japanese businesses led by NTT Docomo and Space Compass Corporation, together with Mizuho Bank Limited and the Development Bank of Japan Inc., have committed to invest $100m in Airbus’ Aalto HAPS unit.

airbus aalto haps ntt space compass
NTT Docomo and its Space Compass JV invest in Airbus' Aalto – Airbus

HAPS – whether they be airships, balloons, or fixed-wing drones – offer a way to provide connectivity to rural and unconnected areas from high altitudes without the upfront costs of cell towers or satellites or the need for specialist receivers.

Aalto's Zephyr is a solar-powered HAPS platform that is being developed by defense giant Airbus. The latest iteration, Zephyr Z8, has a wingspan of 25m while weighing only 75kg. The HAPS is designed to fly at around 70,000 ft (21 km), above the weather and commercial airlines, and is powered by solar panels - enabling it to fly during the day and recharge the batteries which power it at night.

The companies said the investment marks the beginning of a strategic alliance to commercialize connectivity and earth observation services using HAPS in Japan and across Asia. The group is targeting a launch in Japan and a global entry-into-service in 2026.

Takaaki Sato, NTT Docomo CTO, said: “Working with our partners Space Compass, Aalto, and Airbus, we are excited by the potential of HAPS-based non-terrestrial networks (NTN) solutions. Alongside our partners in the Consortium, we look forward to working strategically with Aalto to utilize Zephyr to transform customer experiences.”

Shigehiro Hori, co-CEO of Space Compass Corporation, added: “NTNs have the potential to transform Japan’s communications ecosystem, addressing access to connectivity in hard-to-reach areas while supporting our country’s response to emergencies. Japan has many remote islands and mountainous areas, where there are uneconomic connectivity solutions.”

Airbus Defence and Space will remain Aalto’s majority shareholder. The investment is subject to closing conditions and regulatory approvals.

Samer Halawi, Aalto CEO, said: “This is a landmark investment for Aalto. It is the natural next step in the roadmap of the company’s targeted entry-into-service in 2026, as we industrialize and commercialize our technology. This investment comes as Aalto moves into its next phase of development. This includes launching several customer missions over the coming year, establishing launch and landing sites for Zephyr, and advancing our certification process.”

Space Compass is a joint venture between NTT and SKY Perfect JSAT. SKY Perfect and NTT Docomo conducted a trial of a high-altitude antenna to provide 5G connectivity from a plane recently ahead of the HAPS deployment.

Airbus, NTT, DOCOMO, and SKY Perfect JSAT previously teamed up to jointly study connectivity services from HAPS in January 2022. Airbus last year signed a contract with Space Compass for a proof of concept demonstration flight of its stratospheric drone platform.

Originally designed by defense group Qinetiq in 2003, the Zephyr platform was sold to Airbus in 2013. Since then, Airbus has been developing and testing the platform in order to prepare it for commercial use. In 2023 Airbus formed Aalto as a new subsidiary for Zephyr’s commercial operations, targeting enterprises and telcos. Aalto has previously signed deals with Saudi telco STC and Bermuda's Paradise Mobile.

Jean-Brice Dumont, head of air power at Airbus Defence and Space, added: “After a decade of stewardship by Airbus Defence and Space, Zephyr has established itself as a leading HAPS platform in the world.

"Airbus Defence and Space has enhanced its partnership with NTT, NTT Docomo and SKY Perfect JSAT, while demonstrating the breadth of its portfolio capabilities in the Asia-Pacific region. AALTO now has an excellent investor to help drive its ambitious growth plans over the coming years.”