European aerospace giants unite to challenge Starlink dominance
What's the story
European aerospace giants Airbus, Thales, and Leonardo have announced a merger of their satellite operations. The new venture will be launched in 2027, pending regulatory approval. The partnership is aimed at competing with SpaceX's Starlink. The move is expected to create major synergies and bolster Europe's space independence.
Employment impact
Airbus will hold a 35% stake in the venture
The new entity will employ some 25,000 people across Europe and generate annual revenues of €6.5 billion, based on 2024 figures. Airbus will hold a 35% stake in the joint venture while Thales and Leonardo will each hold 32.5%. The companies said it would operate under joint control "with a balanced governance structure."
Financial benefits
The project was initiated last year
The merger is expected to generate "mid-triple digit" millions of euros in annual synergies on operating income, starting after five years. The project, code-named "Project Bromo," was initiated last year. It aims to replicate the cooperation model of European missile maker MBDA, which is owned by Airbus, Leonardo and BAE Systems.
Strategic advantage
The deal will combine manufacturing and services activities of Thales
The CEOs of the three companies said in a joint declaration that this merger would help governments ensure "Europe's autonomy across the strategic space domain." The deal will combine manufacturing and services activities of Thales Alenia Space and Telespazio—two joint ventures between Leonardo and Thales. It will also include various Airbus space and digital businesses, as well as remaining space activities owned by Leonardo and Thales SESO.