Seeking to challenge American dominance in satellites and space services, Airbus, Leonardo and Thales will merge operations to create a 25,000-employee powerhouse with projected revenue of $7.5 billion.
Three European aerospace powerhouses signed an agreement Thursday to merge their space operations into a single entity with 25,000 employees, positioning the alliance to challenge American dominance in satellite and space services.
Airbus, Leonardo and Thales formalized their intention to combine space activities through a memorandum of understanding signed Oct. 23, creating what would become one of the world’s largest space companies with projected annual revenue of about $7.5 billion.
The partnership aims to bolster Europe’s position in an increasingly competitive global space market, where companies like Elon Musk’s Starlink have gained significant ground in satellite services and infrastructure.
“This proposed new company marks a pivotal milestone for Europe’s space industry,” Guillaume Faury, CEO of Airbus, Roberto Cingolani, CEO of Leonardo, and Patrice Caine, CEO of Thales said in a joint statement. “It embodies our shared vision to build a stronger and more competitive European presence in an increasingly dynamic global space market. By pooling our talent, resources, expertise and R&D capabilities, we aim to generate growth, accelerate innovation and deliver greater value to our customers and stakeholders.”
The three companies said the venture is designed to “strengthen Europe’s strategic autonomy in space,” a sector they described as underpinning critical infrastructure and services in telecommunications, global navigation, earth observation, science, exploration and national security.
Based on year-end 2024 figures, the new company would carry an order backlog representing more than three years of projected sales. Ownership will be split among the parent companies, with Airbus holding a 35% stake and Leonardo and Thales each controlling 32.5%.
The companies emphasized the new entity’s role in developing national space programs. “This new company also intends to serve as the trusted partner for developing and implementing national sovereign space programs,” a spokesperson said.
The executives said the partnership supports European government ambitions to strengthen industrial and technological capabilities across the space sector.
“This partnership aligns with the ambitions of European governments to strengthen their industrial and technological assets, ensuring Europe’s autonomy across the strategic space domain and its many applications,” the CEOs said. “It offers employees the opportunity to be at the heart of this ambitious initiative, while benefiting from enhanced career prospects and the collective strength of the three industry leaders.”
The companies outlined five strategic objectives for the merged entity: fostering innovation through joint research and development, increasing competitiveness against global players by reaching critical mass, leading programs addressing European sovereign needs including military applications, strengthening the European space supply chain, and creating expanded career opportunities for employees across the multinational operation.
The companies said they will consult with employee representatives and pursue regulatory approvals. The new company is expected to begin operations in 2027.
Key Takeaways
Three European aerospace leaders â Airbus, Leonardo and Thales â signed a memorandum of understanding Oct. 23 to merge space operations into a single company with 25,000 employees and $7.5 billion in projected annual revenue.
The alliance targets strategic autonomy in space sectors including telecommunications, navigation, earth observation and national security, positioning Europe to compete with companies like Starlink.
Ownership structure: Airbus will hold 35%, while Leonardo and Thales will each control 32.5% of the new entity.
Timeline: Employee consultations and regulatory approvals will proceed, with operations expected to launch in 2027.
