Airbus and Thales are reportedly exploring a merger of their satellite operations, according to the Financial Times and Reuters. This potential deal is seen as a pivotal moment for Europe’s space industry, as it grapples with intensified competition from global rivals such as SpaceX.
Leonardo is also involved in the talks thanks to the Space Alliance‘s joint ventures with Thales. Founded in 2005, this strategic partnership includes two joint ventures: satellite producer Thales Alenia Space (Thales 67 percent, Leonardo 33 percent) and satellite services provider Telespazio (Leonardo 67 percent, Thales 33 percent) .
The combined entity would be similar to MBDA, a successful cross-border European missile consortium, and aim to enhance Europe’s strategic independence in space. However, significant hurdles, including regulatory approval and overcoming political tensions, lie ahead.
This potential partnership comes as both companies grapple with financial challenges in their space divisions. Declining demand for large satellites — such as Thales‘ Spacebus series and Airbus‘ Eurostar bus — and the rise of smaller, cheaper alternatives, like Space X‘s Starlink, have impacted their bottom lines. A merger could help them address these issues and better compete in the evolving space market.
Although GEO (Geosynchronous Orbit) satellites will continue to have their place, the smaller LEO (Low Earth Orbit) satellites have grown heavily in popularity thanks to SpaceX and other LEO operators.
A military history enthusiast, Richard began at Forecast International as editor of the World Weapons Weekly newsletter. As the Internet grew in importance as a research tool, he helped design the company's Forecast Intelligence Center and currently coordinates the EMarket Alert newsletters for clients. Richard also manages social media efforts, including two new blogs: Defense & Security Monitor, covering defense systems and international issues, and Flight Plan, which focuses on commercial aviation and space systems. For over 30 years, Richard has authored the Defense & Aerospace Companies, Volume I (North America) and Volume II (International) services. The two books provide detailed data on major aerospace and defense contractors. He also edits the International Contractors service, a database that tracks all the contractors involved in the programs covered in the FI library. More recently he was appointed Manager, Information Services Group (ISG), a new unit that encompasses developing outbound content for both Forecast International and Military Periscope.
Carter Palmer has long held a keen interest in military matters and aviation. As a FI's space systems analyst he is responsible for updating the reports and analyses within the Space Systems Forecast – Launch Vehicles & Manned Platforms and Space Systems Forecast – Satellites & Spacecraft products.
