Airbus, Leonardo, Thales agree to create new aerospace entity

Airbus, Leonardo, Thales agree to create new aerospace entity

by | Oct 23, 2025 | Connectivity, Innovation

Airbus, Leonardo, and Thales have agreed to a much-anticipated business deal that will see them pool their space businesses together.

Such a project has been under discussion for months now, as the European defence giants seek to establish a rival to SpaceX, Elon Musk’s US-based satellite and space exploration businesses.

Now, the three companies have signed a memorandum of understanding to build a new entity that combines their space businesses. It is hoped that the deal will improve operational agility and consolidate Europe’s position in the aerospace industry by establishing an autonomous alternative to SpaceX’s Starlink, the low-earth orbit (LEO) satellite connectivity project.

In a joint statement, Guillaume Faury, CEO Airbus, Roberto Cingolani, CEO Leonardo, and Patrice Caine, CEO Thales, said:

This proposed new company marks a pivotal milestone for Europe’s space industry. It embodies our shared vision to build a stronger and more competitive European presence in an increasingly dynamic global space market.

By pooling our talent, resources, expertise and R&D capabilities, we aim to generate growth, accelerate innovation and deliver greater value to our customers and stakeholders. This partnership aligns with the ambitions of European governments to strengthen their industrial and technological assets, ensuring Europe’s autonomy across the strategic space domain and its many applications

The new entity will have an annual turnover of €6.5 billion and employ 25,000 people. Regulators are expected to approve the deal, meaning the new business could be operational by 2027. Ownership will be shared between the three companies, with Airbus, Leonardo, and Thales holding 35%, 32.5%, and 32.5% respectively

Each company will contribute to the new entity as follows:

  • Airbus: Space Systems and Space Digital businesses
  • Leonardo: Space Division, including shares in Telespazio and Thales Alenia Space.
  • Thales: Shares in Thales Alenia Space, Telespazio, and Thales SESO.

Full governance structures will be established in due course. The announcement will strengthen and centralise the European aerospace industry, while also offering new opportunities for innovation.

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Airbus, Leonardo, Thales plan for €10bn satellite merger

Airbus, Leonardo, Thales plan for €10bn satellite merger

by | Sep 15, 2025 | Connectivity, Innovation

Airbus Defence and Space CEO Michael Schoellhorn has confirmed that European aerospace groups Airbus, Leonardo, and Thales could sign a deal before the end of 2025 to combine their satellite operations.

Called ‘Project Buomo’, the initiative would establish a pan-European satellite manufacturer to rival big businesses in the US and China. The plans had stalled over the summer, but Schoellhorn told Italian newspaper Il Correire della Serra on 14 September that talks were ‘on the right track’.

If it goes ahead, the join venture would be worth €10 billion (US$11.7 billion). Previous attempts to merge Europe’s satellite assets have failed due to competing national interests and security issues.

As geopolitical tensions remain high, Europe is keen to secure its native aerospace capabilities. Following Russian drone attacks on Poland earlier in September, Ukrainian President Zelensky even called for the creation of a joint European sky shield.

Meanwhile, Starlink, the low-earth orbit (LEO) satellite company founded by Elon Musk, was valued at US$350 billion in December 2025, making it the most valuable private company in the world. Project Buomo would create a credible European rival backed by regional companies.

If it goes ahead, the resulting cross-border satellite manufacturer would operate similarly to missile maker MBDA. Founded in 2001, MBDA is owed by Airbus, Leonardo, and BAE Systems. As well as big-picture European activities, the company is designed with sensitive national interests in mind.

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