European Aerospace Giants Unite in Joint Venture to Compete Globally

In a significant move for the European aerospace sector, three of the continent’s largest companies—Airbus, Leonardo, and Thales—have announced plans to merge their space businesses into a new joint venture. This strategic collaboration, revealed on October 23, 2025, aims to bolster their competitiveness in the increasingly dynamic global space market.

The joint venture, which remains unnamed, will consolidate various space operations from each company. It will incorporate the Space Systems and Space Digital divisions from Airbus Defence and Space, the Space Division of Leonardo, and Thales’ interests in Telespazio and Thales Alenia Space. Notably, the venture will not encompass any launch vehicle activities, such as Airbus’ stake in ArianeGroup.

With an impressive workforce of about 25,000 employees across Europe, the new entity is projected to generate annual revenues of approximately 6.5 billion euros (around $7.5 billion) based on 2024 forecasts. Furthermore, it boasts a backlog that represents over three years of anticipated sales. In terms of ownership, Airbus will hold a 35% stake, while Leonardo and Thales will each possess 32.5%.

The executives from the three companies expressed their optimism about the joint venture, highlighting its potential to accelerate innovation within the European space sector. In a joint statement, Airbus CEO Guillaume Faury, Leonardo CEO Roberto Cingolani, and Thales Chairman and CEO Patrice Caine emphasized that this partnership aims to create a unified and resilient European space player capable of competing on a global scale and expanding into export markets.

“This proposed new company marks a pivotal milestone for Europe’s space industry,” the executives stated. They underscored the importance of pooling talent, resources, and research and development capabilities to drive growth and deliver enhanced value to customers and stakeholders. This initiative aligns with the goals of European governments to strengthen their industrial and technological assets, ensuring autonomy in the strategic space domain.

The groundwork for this joint venture, internally referred to as Project Bromo, has been in progress for over a year. The intention is to consolidate fragmented space operations across Europe to achieve the scale necessary for global competition, particularly against U.S. firms. Alain Fauré, head of space systems at Airbus Defence and Space, pointed out the existing fragmentation within the European space sector and emphasized that combining the strengths of the three companies could yield significant advantages.

Despite initial delays in announcing the venture due to valuation and governance discussions, the companies remained committed to the project. Cingolani expressed optimism about creating a “giant of space operations in Europe,” while Faury reaffirmed their dedication to the initiative during a recent aerospace summit.

Looking ahead, the joint venture is expected to commence operations in 2027, pending regulatory approvals and customary conditions. Executives anticipate that obtaining European antitrust approvals may take up to two years, reflecting the complexities involved in such a substantial merger.

As the European aerospace industry navigates this transformative phase, the collaboration between Airbus, Leonardo, and Thales may well set a new benchmark for innovation and competitiveness on the global stage.