Imagine a satellite world long dominated by the United States and China  now shaken by a major move from Europe.
three major aerospace firms  Airbus, Thales, and Leonardo  announced plans to merge their satellite divisions into a single new entity worth €6.5 billion.
This move is seen as a strategic step for Europe to maintain technological independence in space and to challenge the dominance of Elon Musk’s Starlink.

What Happened: The Birth of a European Satellite Alliance

The agreement marks a new milestone for Europe’s space industry.
The new entity  yet to be officially named  will employ around 25,000 people across the continent and begin operations in 2027, pending approval from the European Commission.

Ownership structure:

• Airbus: 35 %

• Thales: 32.5 %

• Leonardo: 32.5 %

They will operate under joint governance with equal voting rights among the partners.

Background: Falling Behind in the Era of Low-Cost Satellites

For two decades, European manufacturers were renowned for building large satellites for geostationary orbit (GEO).
But with the rise of low-Earth-orbit (LEO) satellites  cheaper and faster to build  from companies like Starlink, OneWeb, and Kuiper, traditional business models began losing ground.
Today, Starlink alone operates more than 6,000 active satellites, forming the backbone of the modern high-speed global internet.

Europe, long fragmented by national and corporate interests, is now trying to unite to close the gap.

Development Path: From “Project Bromo” to a Historic Agreement

Negotiations between Airbus, Thales, and Leonardo began in 2024 under the codename Project Bromo.
The goal was to replicate the collaborative model of MBDA, the European missile manufacturer that successfully operates across borders.
Although talks were briefly stalled over valuation and governance disputes, the three companies finally signed a framework agreement in October 2025.

The merged entity will consolidate:

• Thales Alenia Space and Telespazio (jointly owned by Thales and Leonardo)

• Airbus Space and Defence division

• Digital space units owned by Thales and Leonardo

Economic and Workforce Impact

Collectively, the three companies have already cut about 3,000 jobs in recent years.
They emphasized that no additional layoffs are planned and that European labor unions will be consulted throughout the process.
Through operational synergies, the new entity is expected to generate hundreds of millions of euros in efficiency gains annually within the first five years.

Strategic Objective: Europe’s Space Autonomy

In a joint statement, the CEOs stressed that this merger would strengthen Europe’s autonomy in the strategic space sector.
With pooled resources, Europe aims to:

• Reduce dependence on U.S. communication systems

• Accelerate innovation in local LEO satellite networks

• Support continental defense and security programs

This initiative also aligns with the European Union’s IRIS² program — a sovereign satellite broadband network designed to serve as the backbone for both civilian and military communications in the future.

Analysis: Challenges and Prospects

Despite its promise, the merger is not without risks.
EU competition regulators are known for their strict stance on major consolidations, and merging three giants with different corporate cultures could create internal friction.

Still, analysts say the move reflects Europe’s realization that it must act quickly.
If successful, the alliance could become the most serious challenger to Starlink in the global market — not just technologically but also as a symbol of industrial and geopolitical power.

Global Impact: Reactions from the Space Industry

The market viewed this merger as a strong signal that Europe is ready to compete.
Investors saw new opportunities to expand global LEO broadband services.
Meanwhile, major players like SpaceX, Amazon Kuiper, and OneWeb are expected to ramp up their constellation capacities in response.

Several space analysts described the move as “Europe’s effort to restore balance” in the global internet landscape — one currently dominated by American corporations.

Conclusion

The Airbus-Thales-Leonardo merger is more than just a business deal — it is both a geopolitical and industrial strategy.
Europe seeks to assert digital and space independence, ensuring that the future of global connectivity is not controlled solely by a handful of U.S. tech giants.

If everything proceeds as planned, 2027 could mark a new chapter in the global satellite race — the year Europe returns to orbit.