In a strategic effort to rival Elon Musk’s Starlink, European aerospace giants Airbus, Thales, and Leonardo are collaborating to form a new joint space venture. Dubbed Project Bromo, the initiative seeks to establish a strong European satellite leader, modeled after the success of MBDA—a missile manufacturer jointly owned by Airbus, Leonardo, and Britain’s BAE Systems, according to sources familiar with the plan.
The proposal marks a rare sign of a concerted effort to consolidate Europe’s fragmented space industry amid intensified competition and financial challenges. It would also help the firms address mounting losses and boost their competitiveness in low Earth orbit satellite production, where they face growing rivalry from a constellation of cheap tiny satellites launched by companies like Elon’s SpaceX.
Leonardo is already laying the groundwork for a new satellite factory that can produce hundreds of 200-kilogram satellites annually, along with large spacecraft. The Italian firm, renowned for its Galileo navigation satellites, aims to have the factory operational by mid-2025, just 3 kilometers from the site where it integrates 700-kilogram-plus spacecraft for customers. This 21,000-square-meter facility, designed to accommodate larger satellites as demand grows, is a significant step towards enhancing the competitiveness of the European space industry.
Thales and Leonardo both have stakes in a new Finnish satellite manufacturer, ICEYE. ICEYE is a significant player in the satellite industry, having built a cluster of seven satellites to transmit data to Earth from space at a much faster rate than individual satellites can. This innovative approach to satellite technology could have a significant impact on the market, as it offers a more efficient and cost-effective way to transmit data from space. The companies hope to sell the cluster as a service to other satellite makers and launchers, further expanding ICEYE’s influence in the industry.
Leonardo and Thales Alenia Space are Europe’s top satellite manufacturers, specializing in telecommunications and navigation technology. They jointly own the Galileo positioning system and have a joint venture in satellite services, Telespazio. They are the only European producers that have a presence in both areas of the satellite value chain.
Leonardo’s Chief Executive Roberto Cingolani, who leads the company’s defense and space business, is seeking visibility for the group when thousands of Airbus workers await details of job cuts this week. The merger proposals are separate from the restructuring efforts that Airbus is making to reshape its space operations and could take years to implement.
Airbus and Leonardo have a history of collaboration in the military and civil space markets, including developing the Ariane 5 rocket and the Airbus A330. The companies have a long-standing partnership on telecommunications satellites and joint efforts in navigation, surveillance, and defense. The Ariane 5 rocket is now produced at a plant near Toulouse that was built with a Thales Alenia Space stake of around 4 percent. Ariane 5’s first flight is scheduled for 2022. The French aerospace giant is also preparing for a shift to bigger satellites as it prepares a version of the rocket capable of carrying heavier payloads. The company expects to be able to offer the Ariane 6 rocket by 2025, with the Ariane 7 by 2027. Its current Ariane 5 rocket can carry a maximum of 150 tonnes to low Earth orbit.
