🔗 Share this article Leading European Aerospace Companies Join Forces to Create Competitor to Musk's SpaceX Three leading EU-based aerospace firms—Airbus, Leonardo, and Thales Group—have now finalized a strategic deal to merge their space operations. This collaboration seeks to establish a single pan-European tech company capable of competing with the SpaceX venture. Financial Details and Ownership Breakdown This newly formed entity is expected to generate annual sales of approximately €6.5bn (£5.6bn). Under 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 respectively retain 32.5% shares. Scope and Goals of the Joint Company The unnamed merger constitutes one of the largest partnerships of its kind across Europe. It will unite various expertise in satellite manufacturing, space systems, parts, and support services from leading aerospace and defence producers. Guillaume Faury, Leonardo's chief executive, and Patrice Caine jointly declared, “This new company represents a crucial milestone for Europe's space industry.” The executives continued, “Through pooling our expertise, resources, knowledge, and R&D strengths, we intend to generate expansion, speed up innovation, and provide enhanced benefits to our customers and stakeholders.” Business Information and Schedule The combined company will be headquartered in Toulouse and have a workforce of approximately twenty-five thousand employees. It is scheduled to be fully functional in the year 2027, following necessary approvals. As per the companies, it is expected to generate “mid-triple digit” euros in millions in cost savings on operating income each year, starting after a five-year timeframe. Context and Reasons Sources indicate that discussions among Airbus, Leonardo, and Thales began the previous year. The initiative seeks to replicate the model of MBDA, which is jointly held by Airbus, Leonardo, and BAE Systems. Despite substantial workforce reductions in their space-related units in recent years, the companies stated that there would be zero immediate site closures or job losses. Nonetheless, they confirmed that unions would be consulted during the project. Past Struggles in Space-Related Operations These firms have encountered difficulties in their space operations recently. Last year, Airbus recorded €1.3bn in losses from unprofitable space contracts and revealed two thousand job cuts in its defence and space division. In a similar vein, Thales Alenia Space, a collaboration between Thales and Leonardo, cut more than 1,000 jobs the previous year. Worldwide Competitive Landscape Meanwhile, Elon Musk's SpaceX, founded in 2002, has grown to emerge as one of the biggest private companies globally, with a valuation of {$400 billion dollars. SpaceX leads both the rocket launch and satellite internet markets. Its main rivals are additional American firms such as United Launch Alliance, a joint venture of Boeing and Lockheed Martin, and Blue Origin, created by technology tycoon Jeff Bezos. Earlier recently, SpaceX successfully flew its 11th Starship rocket from Texas, USA, touching down in the Indian Ocean. In August, US President Donald Trump signed an presidential directive to simplify rocket launches, relaxing regulations for private space companies.