Europe has grown tired of watching from the sidelines how SpaceX and, increasingly, Chinaredefine the rules of the game in space. The continent’s response was inevitable: a historic fusion. The three European aerospace giants, Airbus, Leonardo and Thales, have signed a memorandum of understanding to combine its spatial divisions into a single, colossal enterprise.
Merge or die. This is not news that we break every day. It is the most ambitious move in the European aerospace industry since the creation of the MBDA missile consortium in 2001. And at the same time, it is not an offensive move, but a strategic survival maneuver.
Given the agility of reusable rockets and Elon Musk’s megaconstellations, the fragmentation of Europe had become an unsustainable burden. Now, the plan is to create a European champion with the critical mass necessary to at least be able to compete.
A colossus about to be born. The agreement, which It’s been brewing for months. under the code name “Project Bromo”, it will give rise to a new company that, if approved by regulators, could be operational in 2027. The figures used give an idea of the scale of the operation: a combined annual turnover of 6.5 billion euros, and nearly 25,000 employees spread throughout Europe.
Airbus will have the majority stake with 35%, while the Italian Leonardo and the French Thales will share the rest almost equally, with 32.5% each. Despite the majority of Airbus, the government of the new colossus will be “balanced” and under joint control, as reported by the companies.
What does each one contribute? Each partner will contribute his crown jewels in the space sector. Airbus will contribute with its Space Systems and Digital Space businesses. Leonardo will bring its Space Division to the table, including its valuable stakes in Telespazio and Thales Alenia Space. Thales will mainly contribute its shares in those same joint ventures (Thales Alenia Space and Telespazio) and Thales SESO.
Why it was inevitable. The harsh reality is that Europe was falling behind, and very quickly. SpaceX’s disruption has been brutal, especially on two fronts: launch and satellites. While Europe continues recovering lost ground With the development of its Ariane rockets, Elon Musk’s company has not only radically lowered the cost of putting something into orbit, but has flooded the sky with its Starlink constellation and its military version, Starshield.
Beating SpaceX is no longer possible. On October 19, the company surpassed a staggering number of 10,000 Starlink satellites launched in just over 300 launches of the Falcon 9 rocket. This network of small satellites has cannibalized the traditional market for large and expensive geostationary satellites, the pillar on which the business of European companies was based. The only thing Europe can do, and what this new giant is destined to do, is recover its technological sovereignty in space and, with it, its security.
Image | Airbus
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