European Aerospace Giants Form €6.5 Billion Space Venture, Drawing Skepticism on SpaceX Competition

Three major European aerospace and defense companies – Airbus, Leonardo, and Thales – have formally agreed to merge their space activities into a new joint venture. Announced on October 23, 2025, this strategic consolidation aims to create a leading European player in the global space market, directly challenging the dominance of Elon Musk's SpaceX. The new entity is projected to generate an annual revenue of approximately €6.5 billion and will employ around 25,000 people across Europe.

The agreement outlines a clear ownership structure, with Airbus holding a 35% stake, while Leonardo and Thales will each possess 32.5% of the new company. This collaboration will integrate their satellite manufacturing, space systems, components, and services, though it will not encompass space launcher operations. The companies anticipate the new venture will be fully operational by 2027, pending necessary regulatory approvals and employee consultations.

The primary rationale behind this unification is to enhance Europe's strategic autonomy in space and foster innovation against the backdrop of increasing competition from private entities like SpaceX. In a joint statement, the chief executives of the three companies emphasized that the initiative marks "a pivotal milestone for Europe’s space industry," designed to build a stronger and more competitive presence globally. They aim to pool talent, resources, expertise, and research and development capabilities to drive growth and accelerate innovation.

However, not all industry observers are convinced this consolidation will directly challenge SpaceX's competitive edge. As highlighted in an article by Douglas Gorman, an expert identified as "Atlan" expressed skepticism regarding the venture's immediate impact, stating, > "Let’s not confuse consolidation with competitiveness. I don’t see this merger creating a competitive force at all to SpaceX. If there is to be a competitor to emerge from Europe, they are in the start-up ecosystem today." This perspective suggests that while the merger creates a larger, more unified European entity, true disruptive innovation and competition against SpaceX might still emerge from smaller, agile startups.

This move follows recent struggles in the European space sector, including significant financial charges and job cuts at Airbus and Thales Alenia Space, underscoring the urgency for consolidation to regain global standing. The new company intends to serve as a trusted partner for developing national sovereign space programs, fostering innovation, and increasing competitiveness against global players.