European Aerospace Giants Airbus, Thales, and Leonardo Move Toward Strategic Space Joint Venture

In a significant development within the European aerospace sector, Airbus, Thales, and Leonardo have publicly expressed their intent to establish a joint venture that could reshape the landscape of space exploration and satellite technology. This initiative aims to create a robust European entity capable of competing on equal footing with formidable American and Chinese players in the industry.

The three firms are nearing the signing of a letter of intent, which will detail the terms for merging their respective space divisions into a single organization. This document is expected to signal the start of a collaborative effort, with the goal of conducting comprehensive studies and finalizing a project proposal by winter 2026 for submission to European competition authorities.

Each company plans to contribute their entire range of space activities, encompassing satellite construction, operational management of telecommunications, and spatial intelligence—excluding only launch capabilities. As discussions continue regarding the valuation of their activities, the letter of intent is anticipated to be ready by the end of the month.

During a recent engagement in Washington, Airbus CEO Guillaume Faury confirmed that the project is progressing well, noting that due diligence is underway and all stakeholders have been kept informed about the antitrust measures being implemented. He expressed confidence, stating, “We are on the right track and remain highly committed to this endeavor.”

At a recent space forum in Toulouse, leaders from the space divisions of the three companies conveyed a shared vision. Alain Faury, responsible for Airbus’s space operations, highlighted the increasing fragmentation of the industry, which poses significant challenges in competing against powerful entities like SpaceX and China. Hervé Derrey, head of Thales Alenia Space, emphasized the positive prospects of valuing the potential benefits of this merger, while underlining the critical need for achieving a critical mass to pool research budgets, ensuring Europe’s competitiveness in major space missions.

The current uncertainties regarding future collaborations between NASA and the European Space Agency compel European players to seek greater autonomy, mirroring trends observed in the defense sector. Massimo Comparini, head of Leonardo's space activities, remarked on constructive discussions with the European Commission, which is becoming more aware of the strategic implications, despite its commitment to maintaining competition within the continent.

The joint venture concept draws parallels with the established model of MBDA, a European missile manufacturer co-owned by Airbus, BAE Systems, and Leonardo. However, the integration for this new venture is expected to be more direct, avoiding the political delays that have historically plagued MBDA’s strategy.

Thomas Toepfer, Airbus’s CFO, noted that each party is likely to hold minority stakes in the new entity, with governance structures expected to differ from the MBDA model. Notably, none of the participants seeks a controlling interest, as seen in the current MBDA ownership structure.

The long-discussed ambition of creating a European space champion has faced skepticism from public authorities concerned about monopolistic pricing power. However, the emergence of private players in the space sector and the rise of SpaceX have transformed the competitive dynamics.

Looking ahead, military space ambitions are becoming increasingly relevant, prompting the European Commission to consider a substantial budget allocation for space policy in its forthcoming multiannual financial framework. For the first time, Paris, Rome, and Berlin find common ground, recognizing that maintaining the status quo may prove too costly for the future.