In a move to strengthen their position in the global space market, three leading European aerospace companies, Airbus, Leonardo, and Thales, have announced a strategic alliance. On October 23rd, the companies revealed that they had signed a memorandum of understanding (MOU) to establish a joint venture that will consolidate many of their space-related operations into a single, unified entity.
The new company, whose name is yet to be revealed, will encompass the Space Systems and Space Digital divisions from Airbus Defence and Space, the Space Division of Leonardo (including its stakes in Telespazio and Thales Alenia Space), and Thales' holdings in Thales Alenia Space, Telespazio, and the optics firm Thales SESO. This consolidation is expected to bring together approximately 25,000 employees across Europe, all dedicated to spacecraft and related services. Notably, the venture will exclude launch vehicle activities, such as Airbus' investment in ArianeGroup.
Projected financial figures estimate an annual revenue of 6.5 billion euros ($7.5 billion) based on 2024 performance, with a backlog exceeding three years of projected sales. The ownership structure will see Airbus holding 35% of the joint venture, with Leonardo and Thales each owning 32.5%.
According to a joint statement from Airbus CEO Guillaume Faury, Leonardo CEO Roberto Cingolani, and Thales Chairman and CEO Patrice Caine, the joint venture "will accelerate innovation in this strategic market, in order to create a unified, integrated and resilient European space player, with the critical mass to compete globally and grow on the export markets." They added, "This proposed new company marks a pivotal milestone for Europe’s space industry. It embodies our shared vision to build a stronger and more competitive European presence in an increasingly dynamic global space market." The executives also highlighted the alignment of this partnership with the ambitions of European governments to bolster industrial and technological capabilities, ensuring Europe's autonomy in the strategic space domain.
The concept of this joint venture, known internally as Project Bromo, has been under consideration for over a year. The primary objective is to consolidate space operations, achieving the scale necessary to effectively compete on a global level, particularly against U.S. companies. Alain Fauré, head of space systems at Airbus Defence and Space, emphasized the fragmentation of the European space sector at the Paris Air Show in June. He suggested that a combination of these companies "can have the strengths of the three companies."
While executives had hoped for a decision by the end of July, as Cingolani indicated, discussions continued. "I like to say that one plus one plus one should be bigger than three, otherwise we don’t do it," Cingolani stated in July. Faury confirmed ongoing talks at the Global Aerospace Summit in September.
The companies anticipate the joint venture commencing operations in 2027, pending regulatory approvals. Executives had previously indicated that obtaining European antitrust clearances could take up to two years.