Europe’s big three aerospace manufacturers combine their space divisions to create a rival to SpaceX

Europe’s three big aerospace manufacturers to create a joint business. This “main European player in space” could be a real rival to the American SpaceX, according to .

The companies Airbus, Leonardo and Thales have closed this agreement. The new anonymous entity will be based in France and will employ around 25,000 people. Airbus will own 35 percent, while the other two companies will each own 32.5 percent.

Executives hope this venture will better serve Europe’s need for “sovereignty” in space and help it create a rival to SpaceX’s Starlink communications network. Increasing presence in space is also seen as a good thing for security and defense.

“This proposed new company marks a fundamental milestone for the European space industry. It embodies our shared vision of building a stronger and more competitive European presence in an increasingly dynamic global space market,” the companies wrote in a joint statement. “By bringing together our talent, resources, experience and R&D capabilities, we aim to generate growth, accelerate innovation and deliver greater value to our customers and stakeholders.”

This is not just bragging. Thales and Airbus have long been rivals in the satellite market, but now it appears they are friends. Leonardo is known for space systems and services. Combining all three could give SpaceX a run for its money, but we’ll have to wait and see.

There are no facility closures planned, as companies say each home country will maintain its existing capabilities. This will be an independent company, so consider it a very well-funded startup. The upstart’s first task? Reports indicate it will be to find more efficient ways to develop and manufacture satellites.

Discussions about this merger have been underway since 2019. Regulators have yet to approve the deal, although the companies say they expect the new entity to be operational in 2027.

As for SpaceX, the company markets its Starship super-heavy lift vehicle. It’s also slow, but recently had an issue that could cause a long lag.