🔗 Share this article Major European Aerospace Companies Join Forces to Create Competitor to Elon Musk's SpaceX A trio of leading European aerospace companies—the Airbus Group, Leonardo S.p.A., and Thales—have sealed a strategic deal to merge their space operations. The partnership aims to form a single European technology company capable of rivaling with Elon Musk's SpaceX venture. Financial Details and Ownership Structure This resulting entity is projected to achieve yearly sales of approximately €6.5bn (5.6 billion pounds). Under the terms, Airbus will control a 35% stake in the venture. At the same time, both Italy's Leonardo and Thales will each own 32.5% ownership. Scope and Objectives of the New Company The yet-to-be-named alliance constitutes one of the largest partnerships of its type across the European continent. It will bring together various capabilities in satellite manufacturing, spacecraft systems, parts, and services from leading aerospace and defence producers. The CEO of Airbus, Roberto Cingolani, and Patrice Caine collectively stated, “This new venture represents a pivotal step for Europe's space industry.” They added, “By pooling our expertise, assets, knowledge, and research and development strengths, we aim to generate growth, accelerate progress, and provide greater value to our clients and partners.” Operational Details and Timeline The combined company will be based in Toulouse and employ about twenty-five thousand employees. The entity is planned to become fully functional in 2027, pending necessary clearances. As per the partners, it is expected to yield “mid-triple digit” euros in millions in synergies on operating income per year, starting following a five-year timeframe. Background and Motivation Reports indicate that discussions between Airbus, Leonardo, and Thales began last year. The move seeks to mirror the model of MBDA, which is jointly held by Airbus, Leonardo, and BAE Systems. Although significant workforce reductions in their space units in the past few years, the companies stated that there would be zero immediate facility shutdowns or job losses. Nonetheless, they confirmed that unions would be engaged throughout the process. Past Challenges in Space Business These companies have faced setbacks in their space operations recently. Last year, Airbus incurred €1.3bn in charges from underperforming space contracts and announced 2,000 job cuts in its defense and space sector. Similarly, the Thales Alenia Space joint venture, a partnership between Thales and Leonardo, eliminated over one thousand positions last year. Global Market Landscape Meanwhile, Elon Musk's SpaceX, established in 2002, has expanded to become one of the biggest startups globally, with a market value of {$400 billion dollars. It leads both the rocket launch and satellite-based internet sectors. Its main rivals include other American firms such as United Launch Alliance, a partnership of Boeing and Lockheed Martin, and Blue Origin, founded by tech billionaire Jeff Bezos. Just recently, the company launched its eleventh Starship from Texas, USA, touching down in the Indian Ocean. Earlier in August, American President Donald Trump signed an executive order to streamline space launches, relaxing rules for commercial space companies.