🔗 Share this article Major EU Aerospace Companies Join Forces to Create Rival to Elon Musk's SpaceX Three prominent EU-based space technology firms—Airbus, Leonardo S.p.A., and Thales—have sealed a major deal to merge their space operations. This partnership seeks to establish a single European tech enterprise capable of rivaling with the SpaceX venture. Financial Details and Ownership Structure This newly formed entity is expected to generate annual revenue of approximately €6.5bn (£5.6bn). Under the arrangement, the French aerospace giant Airbus will hold a 35% stake in the venture. Meanwhile, both Leonardo and Thales will respectively retain 32.5% ownership. Scope and Objectives of the New Enterprise The unnamed alliance represents one of the largest consolidations of its kind across Europe. It will unite various expertise in building satellites, spacecraft systems, parts, and services from leading aerospace and defence producers. Guillaume Faury, Leonardo's chief executive, and Thales's CEO collectively stated, “This new venture represents a crucial milestone for Europe's space industry.” They added, “By pooling our expertise, resources, expertise, and research and development capabilities, we aim to drive expansion, speed up innovation, and deliver enhanced value to our customers and partners.” Operational Details and Timeline This combined company will be based in Toulouse and have a workforce of about twenty-five thousand people. The entity is scheduled to be operational in 2027, following regulatory approvals. As per the companies, it is projected to yield “mid-triple digit” euros in millions in cost savings on annual profit per year, starting following a five-year timeframe. Context and Motivation Sources suggest that talks between Airbus, Leonardo, and Thales began the previous year. The move seeks to mirror the model of MBDA, which is owned by Airbus, Leonardo, and BAE Systems. Despite substantial job cuts in their space divisions in the past few years, the companies stated that there would be zero immediate facility shutdowns or layoffs. However, they noted that labor representatives would be consulted throughout the project. Recent Challenges in Space-Related Operations These companies have faced difficulties in their space ventures recently. Last year, Airbus recorded 1.3 billion euros in losses from unprofitable space projects and revealed 2,000 redundancies in its defense and space division. In a similar vein, the Thales Alenia Space joint venture, a collaboration between Thales and Leonardo, cut over 1,000 jobs last year. Global Market Landscape At the same time, Elon Musk's SpaceX, established in 2002, has grown to emerge as one of the largest startups worldwide, with a market value of {$$400bn. It dominates both the space launch and satellite-based internet sectors. Its main rivals are additional American firms such as United Launch Alliance, a joint venture between Boeing and Lockheed Martin, and Blue Origin, created by technology tycoon Jeff Bezos. Just recently, SpaceX launched its 11th Starship from Texas, landing in the Indian Ocean. In August, American President Donald Trump signed an presidential directive to simplify space launches, easing rules for private space operators.