Airbus, Leonardo, Thales Join Forces to Compete With the SpaceX Craze

In a time where almost all commercial space ventures fall under the SpaceX name, it is nearly impossible for other start-ups to gain traction in the industry… alone, at least. A team of major European names, including Airbus, Leonardo, and Thales, is using the power of friendship to give the aerospace giant a run for its money.

The trio is consolidating its space manufacturing, satellite systems, and service operations into one new company. It will be headquartered in Toulouse, France, and employ roughly 25,000 people once fully operational, slated for 2027. Airbus will hold a 35% stake, while Leonardo and Thales will each own 32.5%. Together, the companies expect annual revenues around €6.5 billion ($7.5 billion), making it one of the largest space technology firms in Europe.

Executives Guillaume Faury (Airbus), Roberto Cingolani (Leonardo), and Patrice Caine (Thales) described the merger as a “pivotal milestone” for Europe’s space industry, emphasizing that shared research, talent, and resources will help accelerate innovation and create long-term growth. The partnership follows a structure similar to that of MBDA, the European missile consortium jointly owned by Airbus, Leonardo, and BAE Systems.

The merger comes after several years of financial strain in Europe’s space sector. Airbus recently reported €1.3 billion in losses from struggling space contracts and announced 2,000 job cuts, while Thales Alenia Space eliminated over 1,000 positions. Still, the companies assure that there will be no immediate site closures or layoffs linked to the merger.

The move is largely seen as a strategic response to SpaceX’s growing influence. SpaceX’s reusable rocket technology and its Starlink satellite constellation are in their own league, changing the economics of launch and communications services entirely. As Starlink’s network of low-Earth-orbit satellites expands, demand for Europe’s more traditional geostationary satellites has declined sharply.

European officials and industry leaders have recently gone public with their concerns about growing reliance on Elon Musk’s company, particularly after Europe temporarily depended on SpaceX to launch part of its Galileo navigation system. The Airbus-Leonardo-Thales partnership hopes to break that dependency and turn the tide for Europe’s space presence.

FMI: www.spacex.com