PARIS (Reuters) - Airbus is drawing up a new turnaround plan for its Space Systems business, industry sources said, adding talks over potential European consolidation to fend off competition include Italy's Leonardo as well as France's Thales.

Airbus has launched an immediate cash containment plan across the wider Defence and Space division, aims to announce the specific Space Systems restructuring in September, and hopes to complete a deeper Space Systems strategy review in the fourth quarter as it reels from 1.5 billion euros of recent charges.

The companies involved declined to comment.