Leonardo Collaborates with Thales and Airbus to Forge New Space Strategy

Italy’s Leonardo, alongside French aerospace giant Thales and European aerospace leader Airbus, is crafting a new strategic vision for the space sector, as revealed by Leonardo’s CEO, Roberto Cingolani, during a parliamentary hearing in Italy’s lower house. This collaboration aims to strengthen European alliances and innovate within the increasingly competitive space industry.

Cingolani highlighted the active engagement of the companies in forming large-scale European collaborations, though specifics of the strategy remain under wraps. This announcement coincides with reports that Airbus and Thales are considering a consolidation of some space-related activities, particularly around their satellite operations. Discussions are reportedly centered on a potential integration involving Airbus and Thales Alenia Space—a joint venture where Thales and Leonardo hold a 67%-33% stake respectively.

This potential strategic alignment would require approval from both the European Union and the national governments of France and Italy. It also comes at a time when traditional satellite manufacturers are facing heightened competition from new entrants like Elon Musk’s SpaceX, which is deploying large constellations of satellites in low Earth orbit.

Additionally, Leonardo and Thales maintain a joint venture in satellite services through Telespazio, further deepening their collaborative ties. Both Airbus and Thales Alenia Space stand as Europe’s top satellite manufacturers, specializing in telecommunications, navigation, and surveillance technologies.

Leonardo’s future plans, as outlined in its 2024-28 industrial strategy, include capitalizing on opportunities in the space sector, which is viewed as a pivotal area for defense and growth. The space sector accounted for just under 4% of Leonardo’s annual core profit in 2023, underscoring its potential for expansion.