🔗 Share this article Leading EU Aerospace Firms Join Forces to Create Rival to Elon Musk's SpaceX Three leading EU-based space technology firms—Airbus, Leonardo, and Thales Group—have finalized a strategic agreement to combine their space-related businesses. This partnership seeks to establish a unified European tech company poised of rivaling with the SpaceX. Economic Details and Ownership Structure This resulting company is expected to generate annual revenue of around 6.5 billion euros (£5.6bn). As per the arrangement, the French aerospace giant Airbus will control a 35% share in the new business. At the same time, both Italy's Leonardo and Thales will respectively own thirty-two point five percent shares. Scale and Objectives of the New Enterprise This unnamed merger constitutes one of the largest consolidations of its type across Europe. It will bring together diverse expertise in satellite manufacturing, spacecraft systems, components, and support services from leading defense and aerospace manufacturers. The CEO of Airbus, Roberto Cingolani, and Patrice Caine jointly stated, “The new company marks a pivotal step for the European space industry.” They added, “Through pooling our expertise, resources, expertise, and R&D strengths, we aim to generate growth, accelerate progress, and deliver enhanced value to our customers and partners.” Operational Details and Schedule The new company will be headquartered in Toulouse and employ approximately 25,000 employees. It is scheduled to become operational in 2027, following necessary clearances. According to the companies, it is expected to generate “hundreds of” euros in millions in cost savings on annual profit each year, beginning following a five-year period. Context and Reasons Sources indicate that discussions between Airbus, Leonardo, and Thales started last 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 job cuts in their space divisions in the past few years, the companies stated that there would be no immediate facility shutdowns or job losses. However, they noted that unions would be engaged during the project. Recent Struggles in Space Business The firms have encountered difficulties in their space operations in recent times. The previous year, Airbus recorded €1.3bn in charges from unprofitable space projects and revealed 2,000 redundancies in its defense and space sector. In a similar vein, Thales Alenia Space, which is a partnership between Thales and Leonardo, eliminated over 1,000 jobs last year. Worldwide Competitive Landscape At the same time, the SpaceX, founded in 2002, has grown to become one of the biggest startups globally, with a market value of {$$400bn. It dominates both the rocket launch and satellite internet sectors. Its main competitors are additional American companies such as United Launch Alliance, a joint venture between Boeing and Lockheed Martin, and Blue Origin, founded by technology tycoon Jeff Bezos. Earlier this month, the company successfully flew its 11th Starship from Texas, USA, touching down in the Indian Ocean. In August, US President Donald Trump approved an executive order to streamline rocket launches, easing regulations for commercial space operators.