Major EU Space Firms Join Forces to Create Competitor to Elon Musk's SpaceX
A trio of prominent European aerospace companies—Airbus, Leonardo S.p.A., and Thales—have now sealed a strategic agreement to combine their space-related operations. The partnership aims to establish a unified pan-European technology company capable of rivaling with Elon Musk's SpaceX.
Financial Aspects and Ownership Structure
This newly formed entity is projected to achieve annual sales of around €6.5bn (£5.6bn). As per the terms, Airbus will control a thirty-five percent share in the new business. Meanwhile, both Leonardo and Thales will each retain 32.5% ownership.
Scale and Goals of the Joint Company
The yet-to-be-named alliance constitutes one of the biggest consolidations of its kind across the European continent. It will unite various capabilities in building satellites, space systems, components, and support services from leading defense and aerospace manufacturers.
The CEO of Airbus, Leonardo's chief executive, and Patrice Caine collectively stated, “The joint venture represents a crucial milestone for Europe's space industry.” The executives continued, “Through combining our talent, assets, expertise, and research and development capabilities, we aim to generate expansion, accelerate progress, and provide greater value to our customers and stakeholders.”
Business Information and Schedule
The new company will be based in Toulouse and employ about 25,000 employees. It is planned to become fully functional in the year 2027, following necessary clearances. According to the partners, it is expected to generate “mid-triple digit” euros in millions in cost savings on annual profit per year, starting following a five-year period.
Context and Motivation
Sources suggest that talks among Airbus, Leonardo, and Thales started the previous year. The initiative seeks to replicate the model of the European missile manufacturer MBDA, which is owned by Airbus, Leonardo, and BAE Systems.
Despite significant job cuts in their space divisions in recent years, the companies assured that there would be zero immediate site closures or job losses. However, they noted that unions would be engaged during the project.
Recent Challenges in Space-Related Business
The companies have encountered setbacks in their space operations in recent times. Last year, Airbus recorded 1.3 billion euros in losses from unprofitable space projects and revealed 2,000 job cuts in its defence and space division. Similarly, Thales Alenia Space, which is a partnership between Thales and Leonardo, eliminated over one thousand jobs the previous year.
Global Market Landscape
At the same time, the SpaceX, established in 2002, has expanded to become one of the largest startups worldwide, with a valuation of {$400 billion dollars. It dominates both the space launch and satellite internet markets. Its primary rivals include other American companies such as United Launch Alliance, a partnership between Boeing and Lockheed Martin, and Blue Origin, created by tech tycoon Jeff Bezos.
Just this month, the company launched its eleventh Starship from Texas, landing in the Indian Ocean. Earlier in August, US President Donald Trump signed an presidential directive to simplify rocket launches, easing regulations for private space operators.
