In a landmark move set to reshape Europe’s space industry, Airbus, Leonardo, and Thales have signed a Memorandum of Understanding (MoU) to merge their space activities into a single joint company, a strategic initiative aimed at strengthening Europe’s autonomy and competitiveness in the global space market.
The new entity, expected to become operational in 2027, will combine the industrial and technological strengths of the three aerospace giants, creating a unified European space champion with an annual turnover of €6.5 billion, a workforce of 25,000, and an order backlog covering more than three years of sales. Ownership will be split between Airbus (35%), Leonardo (32.5%), and Thales (32.5%), under a balanced joint governance structure.
The move represents one of the most ambitious consolidation efforts in the history of Europe’s space sector, an industry critical to telecommunications, Earth observation, satellite navigation, and national security.
A New European Space Leader
The combined company will integrate Airbus’s Space Systems and Space Digital businesses, Leonardo’s Space Division including its shares in Telespazio and Thales Alenia Space, and Thales’s stakes in both Thales Alenia Space and Telespazio. It will also include Thales SESO, further broadening the group’s capabilities.
By pooling expertise, R&D capacity, and production assets, the new venture will create a full-spectrum provider of end-to-end space solutions from satellite design and manufacturing to space services and digital applications. The company will not, however, include space launchers, which remain outside the agreement’s scope.
According to a joint statement by Guillaume Faury (Airbus CEO), Roberto Cingolani (Leonardo CEO), and Patrice Caine (Thales CEO), this collaboration marks “a pivotal milestone for Europe’s space industry.”
They said, “It embodies our shared vision to build a stronger and more competitive European presence in an increasingly dynamic global space market. By pooling our talent, resources, expertise, and R&D capabilities, we aim to generate growth, accelerate innovation, and deliver greater value to our customers and stakeholders.”
Driving Innovation and Autonomy
The new company is expected to achieve hundreds of millions of euros in annual synergies within five years of closing, primarily through shared R&D, optimized manufacturing, and improved project management. These synergies will be reinvested into developing next-generation space products and services.
The collaboration aims to ensure Europe’s strategic autonomy in space, a domain increasingly viewed as vital for both economic growth and national defense. The joint venture will provide integrated solutions for civil, commercial, and military customers, reinforcing Europe’s ability to pursue sovereign space programs independently of non-European suppliers.
Beyond economics, the initiative carries a symbolic weight: it is a declaration that Europe intends to compete head-on with space giants in the U.S. and China. The partners hope to create a “resilient, future-ready” European player capable of leading in areas like Earth observation, telecommunications, global navigation, and space-based defense systems.
Strengthening Europe’s Space Ecosystem
The MoU emphasizes the importance of reinforcing Europe’s industrial base by supporting small and medium-sized suppliers, creating predictable demand, and investing in long-term R&D programs. The company will also prioritize workforce development, promising new opportunities for career growth across its multinational footprint.
By aligning with the European Union’s vision for a sovereign and competitive space economy, this merger positions Europe to play a more decisive role in shaping the next frontier of global innovation from climate monitoring and satellite internet to defense-grade space security.
With the global space economy projected to exceed $1 trillion by 2040, Airbus, Leonardo, and Thales are positioning their new alliance as Europe’s response to industry giants like SpaceX, Lockheed Martin, and Northrop Grumman.
Pending regulatory approvals and employee consultations, the transaction is expected to close by 2026, paving the way for the launch of operations in 2027.
This merger not only consolidates industrial strength but also reaffirms Europe’s long-term ambition: to ensure that its skies and beyond are guided by homegrown innovation, resilience, and leadership
Comments are closed.