Airbus, Thales, and Leonardo, Europe’s leading aerospace and defence firms, have announced the merger of their satellite and space activities to create a major European competitor to Elon Musk’s Starlink.
The new joint venture will combine satellite technologies and services, excluding space launcher development. It aims to generate several hundred million euros in annual operating synergies within five years and employ about 25,000 people across Europe.
Airbus will hold a 35% stake, contributing its Space Systems and Space Digital divisions, while Leonardo and Thales will each own 32.5%. Leonardo brings its entire Space division, including stakes in Telespazio and the joint venture Thales Alenia Space, which Thales will also contribute along with its SESO business.
The companies describe the venture as “a unified, integrated and resilient European space player” positioned to expand globally and support national sovereign space programmes.
Growing European investment in aerospace reflects efforts to reduce reliance on providers like SpaceX’s Starlink, which has become crucial in conflicts such as the war in Ukraine but has raised concerns over Europe’s technological sovereignty.
French President Emmanuel Macron has highlighted space as a measure of international power, while some Italian lawmakers have voiced reservations about involving SpaceX domestically. Leonardo’s CEO Roberto Cingolani emphasised the venture is about establishing a European alternative, not just competing with Starlink.
Eutelsat, merged with UK-based OneWeb, has long aimed to rival Starlink but remains overshadowed by its larger satellite constellation. Analysts view the merger as a key step in restoring Europe’s space sector strength and technological independence.