🔗 Share this article Major European Aerospace Firms Join Forces to Establish Competitor to Musk's SpaceX A trio of leading EU-based space technology firms—the Airbus Group, Leonardo S.p.A., and Thales Group—have now sealed a major deal to combine their space businesses. This collaboration seeks to establish a single pan-European tech company poised of rivaling with the SpaceX. Financial Details and Ownership Breakdown This resulting company is expected to generate yearly revenue of around €6.5bn (£5.6bn). As per the arrangement, the French aerospace giant Airbus will control a thirty-five percent share in the venture. At the same time, both Italy's Leonardo and France's Thales will each retain 32.5% shares. Scale and Goals of the New Enterprise The unnamed alliance represents one of the biggest partnerships of its kind across Europe. It will bring together diverse capabilities in building satellites, spacecraft systems, parts, and services from top aerospace and defence manufacturers. Guillaume Faury, Leonardo's chief executive, and Thales's CEO collectively stated, “The joint company represents a pivotal milestone for the European space industry.” The executives continued, “By combining our talent, assets, expertise, and R&D strengths, we intend to generate growth, speed up progress, and provide greater benefits to our clients and partners.” Business Information and Schedule The combined company will be headquartered in Toulouse and have a workforce of about 25,000 people. It is planned to become operational in 2027, following necessary clearances. According to the companies, it is projected to generate “mid-triple digit” euros in millions in synergies on annual profit each year, starting following a five-year period. Context and Motivation Sources indicate that discussions between Airbus, Leonardo, and Thales started the previous year. The initiative aims to mirror the model of the European missile manufacturer MBDA, which is jointly held by Airbus, Leonardo, and BAE Systems. Despite significant workforce reductions in their space divisions in the past few years, the firms stated that there would be no immediate site closures or job losses. However, they confirmed that labor representatives would be engaged throughout the process. Recent Challenges in Space-Related Business The firms have faced difficulties in their space ventures in recent times. The previous year, Airbus incurred €1.3bn in charges from unprofitable space projects and announced two thousand job cuts in its defence and space sector. Similarly, Thales Alenia Space, a partnership between Thales and Leonardo, eliminated more than one thousand positions last year. Global Competitive Landscape Meanwhile, the SpaceX company, established in 2002, has expanded to become one of the largest startups globally, with a market value of {$$400bn. It dominates both the space launch and satellite internet sectors. Its primary competitors include additional US companies such as United Launch Alliance, a joint venture of Boeing and Lockheed Martin, and Blue Origin, founded by tech tycoon Jeff Bezos. Just this month, the company launched its eleventh Starship rocket from Texas, landing in the Indian Ocean. Earlier in August, American President Donald Trump signed an presidential directive to streamline space launches, relaxing regulations for commercial space companies.