European Players Form Space Alliance

Airbus, Leonardo, and Thales agreed to combine their satellite and space activities in a single entity. The partners believe that the move will create a more competitive European player.

The three companies have signed a memorandum of understanding (MoU) on forming the venture that should be up and running during 2027, subject to regulatory clearances. It will comprise the trio’s activities concerned with satellite and space system manufacturing, along with related services. In a joint statement, Airbus, Leonardo, and Thales outlined an ambition to boost Europe’s strategic autonomy in space, noting that the sector underpins critical infrastructure and services related to telecommunications, global navigation, earth observation, science, exploration, and national security.

The new entity will also aim to meet the demands of European countries’ national sovereign space programs and operate in global markets. It will likely compete against companies, including Elon Musk’s SpaceX. Under the plan, each party will contribute existing business units to build on complementary assets and pool investments, R&D capabilities, and expertise. The combination is expected to generate significant synergies compared to the players continuing to act individually in the sector.

The entity will be formed from the combination of Airbus’s Space Systems and Space Digital businesses from its Defense and Space division; Leonardo’s Space Division, including its shares in Telespazio and Thales Alenia Space; and Thales will contribute with its shares in Thales Alenia Space, Telespazio, and Thales SESO. Airbus will own 35% of the new company, with the other two parties holding 32.5% each. A joint statement hailed the proposed new company as a pivotal milestone for Europe’s space industry. “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 trio added.