-
16:30
-
11:50
-
11:20
-
07:30
-
10:50
-
08:30
-
08:00
-
07:30
-
16:20
Follow us on Facebook
Satellites: Airbus, Thales, and Leonardo Merge to rival starlink
European aerospace giants Airbus, Thales, and Leonardo have signed a memorandum of understanding to merge their satellite operations, in a landmark project aimed at challenging Elon Musk’s Starlink and strengthening Europe’s technological sovereignty.
The newly created “European champion” will employ around 25,000 people across Europe, with estimated annual revenues of €6.5 billion (based on 2024 data) and an order backlog exceeding three years of sales. The entity is expected to become operational in 2027, pending approval from the European Commission.
“In a world of increasing competition, Europe needs space champions. This is the only way to remain competitive,” said Philippe Baptiste, France’s Minister of Higher Education, Research and Space and former head of the CNES space agency.
A Sector in Crisis
The dominance of SpaceX, which deploys low-cost satellite constellations in low Earth orbit, the decline in demand for satellite television, and the complex governance of Europe’s space sector have plunged the industry into a deep crisis.
Europe has lost half of its satellite market share in the past decade, leaving traditional manufacturers — focused on large geostationary satellites — struggling to adapt.
Dubbed Project Bromo, the merger was hailed by French Economy Minister Roland Lescure as “excellent news,” emphasizing that the creation of a European satellite champion would reinforce Europe’s strategic autonomy.
The new company will be headquartered in Toulouse, France, where all three groups already have major engineering and research facilities.
According to Airbus, five years after completion, the merger is expected to generate hundreds of millions of euros in annual savings through synergies and shared technologies.
Ownership and Governance
Airbus will hold 35%, while Thales and Leonardo will each own 32.5% of the capital. The entity will operate under a joint governance model to ensure balance among the partners.
However, trade unions have warned against a potential “monopoly”, noting that ongoing job cuts in Airbus and Thales’ space divisions could threaten expertise in the sector.
The CGT Metallurgy union criticized the merger as a way to “impose prices and weaken the CNES and ESA”, while FO Métaux said it could create “a new industrial balance” only if French know-how is preserved and no jobs are lost.
“An Airbus for Space”
An Airbus executive compared the agreement to the creation of MBDA, the European missile consortium founded 25 years ago, also based on balanced ownership among Airbus, BAE Systems, and Leonardo.
The European Space Agency (ESA) has already expressed full support for the Bromo project.
“We’ve seen how Airbus became a global leader in aviation; the space sector must now follow that path,” said ESA chief Josef Aschbacher earlier this month.
While Airbus acknowledged recent job reductions in response to market challenges, the company said it does not plan site closures. Thales, for its part, confirmed it had suspended job cuts following a major contract win for the European Iris² constellation project, having already redeployed 75% of affected employees.