European Aerospace Giants Form Alliance to Challenge Starlink's Dominance in Satellite Industry

Airbus would maintain a 35% stake in the venture, with Thales and Leonardo each holding 32.5%. (Representational)

Rome/Paris:

European aerospace corporations announced a preliminary agreement on Thursday to merge their unprofitable satellite manufacturing operations. This strategic consolidation comes after extensive negotiations aimed at creating a formidable competitor to counter the explosive growth of rivals, particularly Elon Musk's Starlink network.

The highly anticipated collaboration between Airbus, Thales and Leonardo would establish a new joint enterprise scheduled to commence operations in 2027, pending approval from European regulatory authorities who have historically been resistant to such industrial combinations.

According to the companies' joint statement, the unified entity would employ approximately 25,000 personnel across European facilities. The new venture is projected to generate annual revenues of roughly 6.5 billion euros ($7.58 billion), based on 2024 financial data.

The ownership structure allocates Airbus a 35% share of the new enterprise, while Thales and Leonardo would each control 32.5%. The statement emphasized that the venture would function under joint management "with a balanced governance structure among shareholders."