Airbus and Thales Eye Satellite Merger

- by Richard Pettibone and Carter Palmer
SKYNET 6A. Image – Airbus

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.

 

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A military history enthusiast, Richard began his career at Forecast International as editor of the World Weapons Weekly newsletter. As the Internet became central to defense research, he helped design the company’s Forecast Intelligence Center and now coordinates the FI Market Recap newsletters for clients. He also manages two blogs: Defense & Security Monitor, which covers defense systems and international security issues, and Flight Plan, focused on commercial aviation and space systems.

For more than 30 years, Richard has authored Defense & Aerospace Companies, Volume I (North America) and Volume II (International), providing detailed data on major aerospace and defense contractors. He also edits the International Contractors service, a database tracking all companies involved in programs covered by the FI library. Richard currently serves as Manager of the Information Services Group (ISG), which develops outbound content for both Forecast International and Military Periscope.

Carter Palmer, Lead Analyst, Industrial & Marine Gas Turbine Analyst
Lead Analyst, Space Systems at  |  + posts

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.

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About Richard Pettibone and Carter Palmer

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