🔗 Share this article

A trio of leading EU-based space technology companies—the Airbus Group, Leonardo S.p.A., and Thales—have now sealed a strategic agreement to combine their space businesses. The collaboration seeks to establish a unified European technology company capable of competing with the SpaceX venture.

Financial Aspects and Stake Breakdown

This newly formed entity is projected to generate annual revenue of around 6.5 billion euros (5.6 billion pounds). As per the terms, the French aerospace giant Airbus will control a 35% stake in the new business. Meanwhile, both Italy's Leonardo and Thales will respectively own 32.5% shares.

Scale and Goals of the New Company

The yet-to-be-named alliance represents one of the largest partnerships of its kind across Europe. It will bring together various capabilities in satellite manufacturing, spacecraft systems, components, and services from leading aerospace and defence manufacturers.

Guillaume Faury, Leonardo's chief executive, and Thales's CEO jointly declared, “The new venture marks a pivotal step for Europe's space industry.” They continued, “Through combining our talent, resources, knowledge, and R&D capabilities, we intend to generate expansion, speed up progress, and provide greater value to our clients and partners.”

Operational Details and Timeline

This new firm will be based in Toulouse, France and have a workforce of approximately twenty-five thousand employees. It is planned to become operational in the year 2027, pending necessary clearances. According to the partners, it is expected to yield “mid-triple digit” euros in millions in cost savings on operating income per year, beginning after a five-year timeframe.

Context and Reasons

Sources indicate that talks between Airbus, Leonardo, and Thales started last year. The move aims to mirror the structure of MBDA, which is jointly held by Airbus, Leonardo, and BAE Systems.

Despite substantial workforce reductions in their space-related units in recent years, the companies assured that there would be zero immediate facility shutdowns or job losses. However, they confirmed that labor representatives would be engaged during the project.

Recent Struggles in Space Business

The companies have encountered difficulties in their space operations recently. The previous year, Airbus recorded 1.3 billion euros in charges from unprofitable space projects and announced 2,000 job cuts in its defense and space sector. In a similar vein, the Thales Alenia Space joint venture, a collaboration between Thales and Leonardo, cut more than 1,000 jobs the previous year.

Global Market Environment

Meanwhile, Elon Musk's SpaceX, founded in 2002, has grown to emerge as one of the biggest private companies globally, with a market value of {$400 billion dollars. SpaceX leads both the space launch and satellite-based internet sectors. Its primary rivals are other US firms such as United Launch Alliance, a partnership of Boeing and Lockheed Martin, and Blue Origin, founded by tech billionaire Jeff Bezos.

Just recently, SpaceX launched its eleventh Starship rocket from Texas, USA, landing in the Indian Ocean. In August, US President Donald Trump signed an presidential directive to streamline space launches, relaxing rules for commercial space operators.