Airbus, Thales, and Leonardo Join Forces in a Toulouse-Based Venture Set for 2027
According to Reuters, Europe has taken a major step toward strengthening its position in the global satellite communications race, as Airbus, Thales, and Leonardo reached a landmark deal to merge their satellite manufacturing and services divisions.
The new Toulouse-based venture, set to launch operations in 2027, marks the most ambitious consolidation of Europe’s aerospace industry since the creation of missile manufacturer MBDA in 2001. The goal: to build a European competitor capable of rivaling Elon Musk’s Starlink, the massive low-Earth orbit satellite network operated by SpaceX.
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“This agreement will strengthen European sovereignty in an environment of intense global competition,” said French Finance Minister Roland Lescure. Italy’s Industry Minister Adolfo Urso added that the initiative supports the rise of “European champions capable of competing globally.”
Code-named “Project Bromo”, the partnership has been in talks since 2023. While Europe’s traditional aerospace firms have long specialized in complex geostationary satellites, the rise of smaller, cheaper low-orbit systems has reshaped the market.
Thales CFO Pascal Bouchiat said the alliance would play a key role in developing IRIS², the EU’s planned secure satellite network. “This first development contract for IRIS² doesn’t take away the challenges facing Europe’s industry,” he told reporters.
The new company will employ around 25,000 people and generate €6.5 billion ($7.58 billion) in annual revenue, with expected synergies reaching hundreds of millions of euros within five years.
Shares of Leonardo rose nearly 2%, while Airbus and Thales gained slightly, as analysts hailed the move as a “positive step” toward building a strong European competitor in the global aerospace arena.
Photo: Economica
