Airbus (AIR), Leonardo (LDO), and Thales (HO) have signed a Memorandum of Understanding (MoU) to merge their respective space operations and form a new European enterprise dedicated to advancing innovation, competitiveness, and strategic autonomy in the space sector.
The alliance aims to create a unified company that will bring together the partners’ extensive expertise in satellite systems, telecommunications, navigation, Earth observation, science, and national security applications, while excluding launch vehicle activities. This initiative seeks to strengthen Europe’s independence in space technologies and position the continent as a stronger player in the global market.
Under the proposed structure, the new entity will integrate the space infrastructure and digital businesses of Airbus Defence and Space, Leonardo’s Space Division (including its holdings in Telespazio and Thales Alenia Space), and Thales’ shares in Thales Alenia Space, Telespazio, and Thales SESO. The combined company will employ approximately 25,000 people across Europe, with an estimated annual revenue of €6.5 billion (pro forma, 2024) and an order backlog equivalent to over three years of sales. Ownership will be divided among the partners, with Airbus holding 35%, and Leonardo and Thales each holding 32.5%, operating under a joint governance model.
Pooling their complementary strengths, the three companies aim to build a comprehensive portfolio of space technologies and end-to-end services—from infrastructure design and manufacturing to data-driven applications. The merger is expected to unlock hundreds of millions of euros in annual operating synergies within five years of completion, supported by increased efficiency in engineering, production, and project execution.
The collaboration between Airbus, Leonardo, and Thales is centered on accelerating innovation by combining their research and development capabilities. Through this shared approach, the partners aim to ensure that Europe remains at the forefront of advancing technologies for future space missions, scientific exploration, and commercial services. By leveraging joint expertise and resources, the new venture seeks to foster a culture of continuous innovation that strengthens Europe’s leadership in the global space arena.
A key objective of the partnership is to achieve the necessary scale and competitiveness to stand alongside leading global space companies. The combined strengths of the three organisations will enable the new entity to develop a robust and efficient operating model, capable of competing in both established and emerging markets. This unified effort is expected to enhance Europe’s ability to deliver complex, large-scale programmes while maintaining technological independence.
The alliance also intends to design and deliver integrated solutions that cater to a wide range of civil, commercial, and national security requirements across all major space domains. By offering end-to-end capabilities—from infrastructure to advanced services—the new company aims to support governments, institutions, and private sector clients with reliable, sovereign, and future-ready space technologies.
Beyond its market ambitions, the partnership is equally focused on strengthening Europe’s broader industrial ecosystem. It plans to create long-term stability for suppliers and partners, attract new investment into the space sector, and open up wider career opportunities for employees through cross-border collaboration and access to a diverse pool of technical expertise. Together, these efforts will contribute to a more resilient, skilled, and globally competitive European space industry.
In a shared message, Guillaume Faury, CEO of Airbus; Roberto Cingolani, CEO and General Manager of Leonardo; and Patrice Caine, Chairman and CEO of Thales, said “This collaboration represents a defining step for Europe’s space industry. Together, we are building a powerful and integrated player capable of competing globally, fostering innovation, and supporting Europe’s strategic independence in space. Our combined resources, technologies, and talent will deliver stronger capabilities, greater value for customers, and new opportunities for our teams across Europe.”
Consultations with employee representatives across all three companies will take place in accordance with local regulations. The transaction remains subject to customary approvals, including regulatory clearance, and the new company is expected to be operational by 2027.
Airbus pioneers sustainable aerospace solutions for commercial aviation, defence, and space. The company designs and manufactures modern, fuel-efficient aircraft, while leading Europe in space systems and defence innovation.
Leonardo is a global industrial group specializing in aerospace, defence, and security technologies. With a workforce of 60,000 across multiple countries, Leonardo is a key partner in major international programs including Eurofighter, GCAP, and Eurodrone, and operates through subsidiaries and joint ventures such as Telespazio, Thales Alenia Space, and Leonardo DRS.
Thales is a world leader in advanced technologies for defence, aerospace, and digital security. With over 83,000 employees in 68 countries, the company invests more than €4 billion annually in R&D to advance innovation in AI, cybersecurity, quantum, and cloud solutions for critical applications.
