European Aerospace Merges 25,000 Staff to Challenge SpaceX Dominance

Europe is consolidating its space industry to better compete with SpaceX's dominance in commercial space, with Airbus, Leonardo, and Thales forming a joint venture headquartered in Toulouse, France, expected to be operational by 2027. This merger, which excludes launch activities, aims to unify satellite manufacturing, space systems, and services under one entity with an anticipated €6.5 billion in annual revenue and 25,000 employees. The partnership is a strategic response to SpaceX's innovations like reusable rockets and the Starlink satellite constellation, which have significantly shifted the economics and speed of space launch and communications. Meanwhile, the United States faces growing competition from China, whose state-supported commercial space investments and military space doctrine pose national security challenges, including potential risks of espionage and aggression in space. European leaders emphasize that the merger aligns with governmental ambitions to strengthen industrial and technological autonomy in space and improve competitiveness against dominant American and Chinese players. The collaboration is expected to unlock efficiency gains and accelerate innovation in Europe's space sector, which has struggled with fragmentation and financial strain in recent years.