*

Tells analysts it is progressing in review of satellite

project

*

Expects stable headcount in Q4 compared to previous

quarter

(Adds details from paragraph 4)

By Tim Hepher

PARIS, Jan 28 (Reuters) - Airbus signalled a

potential new charge in its troubled Space business on Tuesday,

saying it would update investors on a long-running status review

of a major satellite programme during annual results on Feb. 20.

In a webcast to analysts, the European aerospace group did

not provide details of the planned update but said it was

progressing in its more than year-old technical assessment.

Airbus has already absorbed 1.6 billion euros ($1.67

billion) of charges for its Space business, which industry

sources have linked mainly to the ambitious OneSat programme of

reprogrammable satellites, with more provisions expected.

Heavy internal losses and competition from Elon Musk's

Starlink have led Europe's two largest players - Airbus and

Thales Alenia Space - to consider pooling satellite activities

in a new venture similar to European missile maker MBDA.

The chief executive of Italy's Leonardo, which owns one

third of Thales Alenia Space alongside majority owner Thales

,

said earlier

he had met with Airbus CEO Guillaume Faury to discuss

possible alliances in the satellite industry.

Airbus rival Boeing ( BA ) is also suffering problems in

its space activities as the traditional aerospace companies face

escalating competition from players like Musk's SpaceX.

Boeing ( BA ) earlier set out 2024 losses including a

pre-announced

charge on the Commercial Crew

space programme and other fixed-price contracts in its

Defense & Space division.

In its preparatory webcast for analysts, Airbus said it

expected its cost-cutting and improvement programme, known as

"LEAD!", to show similar financial benefits in the fourth

quarter of 2024 compared with the previous quarter.

Airbus last week told unions it was scrapping efforts to

create a

freight airline out

of spare capacity for the whale-like Beluga planes that it

uses to ferry fuselage parts between its factories. Unions have

criticised the cost-cutting drive.

After over-hiring staff to prepare for production

increases, Airbus said its headcount would be roughly stable in

the fourth quarter compared with the previous three months.

The publication of a quarterly webcast on the company's

website is a relatively new practice under market transparency

rules, and marks the beginning of a "quiet period" limiting

communications ahead of the company's Feb. 20 results.