Leonardo, Thales, and Airbus Unite for Space Strategy
Leonardo collaborates with Thales and Airbus on a new space strategy, focusing on European alliances and satellite production amid rising competition from low Earth orbit constellations.
Image Source: www.airuniversity.af.edu
Italy’s aerospace and defense group, Leonardo, is teaming up with France’s Thales and Airbus to develop a joint strategy for the space sector. Roberto Cingolani, Leonardo’s Chief Executive, announced the collaboration during a hearing in Italy’s lower house of parliament, emphasizing their efforts to form significant European alliances.
Cingolani’s comments align with reports of Airbus and Thales considering a merger of their space activities, particularly in the area of satellite production. Discussions are centered around their overlapping satellite operations, with a potential tie-up involving Airbus and Thales Alenia Space, a joint venture between Thales (67%) and Leonardo (33%).
Leonardo has refrained from commenting on these reports. Any alliance or merger would require EU approval and the support of both the French and Italian governments. Leonardo and Thales also collaborate through their satellite services joint venture, Telespazio.
Airbus and Thales Alenia Space are Europe’s leading manufacturers of satellites for telecommunications, navigation, and surveillance. However, the market for geostationary satellites faces increasing competition from large constellations of low Earth orbit satellites, such as Elon Musk’s SpaceX Starlink network.
In its 2024-28 industrial plan, Leonardo identified space as a crucial sector for future defense, with significant growth potential. The space sector contributed just under 4% of Leonardo’s annual core profit in 2023, highlighting opportunities for expansion.
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