Airbus, Leonardo and Thales are merging their satellite manufacturing and space systems divisions to create a new European space group that will compete with global giants such as Space X's Starlink.

The initiative aims to strengthen the European space ecosystem, a sector that currently supports critical infrastructure and services related to telecommunications, global navigation, Earth observation, science, exploration and national security.

On Thursday, the firms said that the new company would develop a vast portfolio of technologies and end-to-end solutions, from space infrastructure to services, aiming to compete globally and grow across export markets.

The company will also seek to promote innovation and technological progress by leveraging joint research and development capabilities ((R&D) to be at the forefront of space missions in various sectors and improve operational efficiency.

The new company, set to become fully operational by 2027, also intends to serve as a reliable partner for the development and implementation of sovereign national space programmes, the firms said.

The combined entity is expected to employ around 25,000 people across Europe and have an annual turnover of about €6.5 billion.

It will operate under joint control, with a balanced governance structure between the shareholders.

Airbus, Leonardo and Thales will hold 35 per cent, 32.5 per cent and 32.5 per cent of the shares respectively.

Guillaume Faury, chief executive officer of Airbus, Roberto Cingolani, chief executive officer and general manager of Leonardo and Patrice Caine, chairman and chief executive officer of Thales, said that the move embodies the companies’ shared vision to build a stronger and more competitive European presence in an increasingly dynamic global space market.

“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,” they said.

Leonardo is an international industrial group specialising in the Aerospace, Defence and Security (AD&S) sectors. With 60,000 employees worldwide, the company recorded new orders worth €20.9 billion in 2024, with an order book of €44.2 billion and consolidated revenues of €17.8 billion.

Thales specialises in advanced technologies for the defence, aerospace and cyber & digital sectors. The Group invests over €4 billion per year in research and development in key areas and has over 83,000 employees in 68 countries. In 2024, the Group generated revenues of €20.6 billion.

Airbus provides technologically advanced solutions in the aerospace, defence and related services sectors, offering solutions and services for civil and military helicopters worldwide.

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