Airbus, Leonardo, and Thales Merge Space Units to Challenge SpaceX and Cut Costs

Airbus SE, Leonardo SpA, and Thales SA have consolidated their space operations into a single entity headquartered in Toulouse, France. The merger creates a powerhouse with 25,000 employees and €6.5 billion in annual revenue. Airbus controls 35% of the venture, while Leonardo and Thales each hold 32.5%. The MOVE aims to bolster Europe's competitive edge against SpaceX by streamlining satellite production and reducing costs through shared R&D.

The strategy mirrors MBDA, a joint missile venture between Airbus, BAE Systems, and Leonardo. Projected savings reach "mid-triple-digit millions" within five years, achieved by eliminating redundancies and optimizing procurement. Shares of Airbus dipped 0.35% to $59.67 following the announcement.

Europe's traditional dominance in geostationary communication satellites faces disruption from SpaceX's Starlink constellation. The shift toward low-cost, mass-produced LEO satellites demands rapid adaptation—a challenge this merger seeks to address.