Three major European aerospace companies, Airbus, Leonardo, and Thales, have announced plans to merge their space divisions into a single entity, aiming to enhance the continent”s autonomy in space. This strategic move was revealed on Thursday through a signed Memorandum of Understanding (MoU), with the goal of creating a robust presence in the increasingly competitive global space market.
The new company is designed to act as a reliable partner for the development and execution of national sovereign space programs. According to Airbus, the initiative aims to “strengthen Europe”s strategic autonomy in space.” In this arrangement, Airbus will hold a 35 percent share, contributing its Space Systems and Space Digital operations from Airbus Defence and Space. Meanwhile, Leonardo and Thales, both possessing a 32.5 percent stake, will contribute their respective space units, including Leonardo“s Space Division and Thales” interests in Thales Alenia Space, Telespazio, and Thales SESO.
The newly formed company is expected to employ around 25,000 people across Europe and aims to achieve an initial annual revenue of approximately €6.5 billion, based on figures projected for 2024. If it successfully navigates the necessary regulatory processes, the entity could commence operations by 2027. Airbus emphasized that the merger will enable the pooling, development, and provision of a comprehensive range of complementary technologies and end-to-end solutions, covering everything from space infrastructure to services, though it will not include space launchers.
Despite the potential benefits of this collaboration, the newly formed entity will face significant challenges. Even with favorable outcomes in the upcoming two years of discussions with regulatory bodies and governments, the market remains highly competitive. The emergence of cost-effective and simplified satellite constellations in low Earth orbit has created difficulties for European satellite manufacturers, who have traditionally focused on producing more complex spacecraft designed for geostationary orbit.
Highlighting the urgency of this initiative, Airbus CEO Guillaume Faury, along with Leonardo CEO and GM Roberto Cingolani, and Thales Chair and CEO Patrice Caine, stated in a joint announcement: “This proposed new company marks a pivotal milestone for Europe”s space industry. It embodies our shared vision to build a stronger and more competitive European presence in an increasingly dynamic global space market.” They further noted that this partnership aligns with the aspirations of European governments to bolster their industrial and technological capabilities, ensuring autonomy in the strategic space domain and its numerous applications.
