🔗 Share this article

A trio of prominent EU-based aerospace firms—the Airbus Group, Leonardo, and Thales—have finalized a major agreement to combine their space-related operations. This collaboration aims to form a unified pan-European tech enterprise capable of competing with Elon Musk's SpaceX.

Economic Details and Ownership Breakdown

The resulting entity is expected to achieve yearly sales of approximately 6.5 billion euros (5.6 billion pounds). Under the arrangement, the French aerospace giant Airbus will control a 35% stake in the venture. Meanwhile, both Leonardo and France's Thales will respectively retain 32.5% ownership.

Scale and Objectives of the New Company

This yet-to-be-named alliance represents one of the largest consolidations of its kind across the European continent. It will bring together various capabilities in building satellites, spacecraft systems, parts, and services from leading aerospace and defence producers.

Guillaume Faury, Roberto Cingolani, and Thales's CEO jointly stated, “This joint company represents a pivotal step for the European space industry.” They continued, “By combining our expertise, resources, expertise, and R&D strengths, we intend to generate expansion, speed up progress, and provide greater value to our clients and partners.”

Operational Information and Schedule

The combined company will be based in Toulouse and employ about twenty-five thousand people. It is scheduled to become operational in 2027, pending regulatory clearances. According to the companies, it is projected to generate “hundreds of” millions of euros in cost savings on operating income per year, beginning following a five-year period.

Context and Motivation

Sources indicate that discussions among Airbus, Leonardo, and Thales started the previous year. The move aims to replicate the structure of the European missile manufacturer MBDA, which is owned by Airbus, Leonardo, and BAE Systems.

Despite substantial job cuts in their space-related divisions in the past few years, the companies stated that there would be no immediate facility shutdowns or layoffs. However, they confirmed that labor representatives would be consulted throughout the process.

Recent Struggles in Space Operations

The companies have faced setbacks in their space ventures in recent times. The previous year, Airbus recorded 1.3 billion euros in charges from underperforming space projects and revealed 2,000 job cuts in its defence and space division. Similarly, the Thales Alenia Space joint venture, a partnership of Thales and Leonardo, cut over one thousand positions last year.

Global Competitive Landscape

At the same time, Elon Musk's SpaceX company, established in 2002, has grown to emerge as one of the largest private companies globally, with a market value of {$$400bn. SpaceX leads both the space launch and satellite internet sectors. Its primary rivals include additional American companies such as United Launch Alliance, a partnership of Boeing and Lockheed Martin, and Blue Origin, founded by technology billionaire Jeff Bezos.

Just this month, the company launched its eleventh Starship rocket from Texas, landing in the Indian Ocean. In August, US President Donald Trump signed an presidential directive to streamline rocket launches, easing rules for private space operators.