Airbus, Leonardo, and Thales team up under “Project Bromo” to boost Europe’s space autonomy. Check out to know what they are upto.

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Airbus, Leonardo, and Thales have signed a Memorandum of Understanding (MoU) to create a new company that will combine their space activities.

This partnership aims to advance Europe’s strategic autonomy in the space sector, which is significant for telecommunications, global navigation, earth observation, scientific research, exploration, and national security.

The new company is likely to adopt a model similar to MBDA, Europe’s multinational missile manufacturer owned jointly by Airbus, Leonardo, and BAE Systems, reports Aerospace Global News. 

French Finance Minister Roland Lescure said the preliminary deal would “strengthen European sovereignty in a context of intense global competition,” reports Reuters.

Project Bromo: Developing technologies and end-to-end solutions

Code-named “Project Bromo (a volcano in Indonesia)”, talks between the three groups started last year.

This new company will create and develop a range of technologies and end-to-end solutions for space infrastructure, excluding space launchers.

It aims to boost innovation in this important market, forming a strong and unified European space organisation that can compete globally and grow in international markets.

Additionally, this partnership is expected to generate mid triple-digit million euros in operating income within five years after the deal is finalised.

The costs to achieve these benefits should be in line with industry standards, says the press release.

This new company will encompass the following contributions:

  • Airbus will contribute with its Space Systems and Space Digital businesses, coming from Airbus Defence and Space.
  • Leonardo will contribute with its Space Division, including its shares in Telespazio and Thales Alenia Space.
  • Thales will mainly contribute with its shares in Thales Alenia Space, Telespazio, and Thales SESO.

The new company which will be based out of Toulouse, will employ around 25,000 people across Europe. The new company also expects annual turnover of about €6.5B (end of 2024, pro-forma) and an order backlog representing more than three years of projected sales

Airbus will own 35 per cent of the company, while Leonardo and Thales will each own 32.5 per cent. The company will be jointly controlled, with shared decision-making among the owners.

Guillaume Faury, Chief Executive Officer of Airbus, Roberto Cingolani, Chief Executive Officer and General Manager of Leonardo and Patrice Caine, Chairman & Chief Executive Officer of Thales, declare, ​“This proposed new company marks a pivotal milestone for Europe’s space industry. It embodies our shared vision to build a stronger and more competitive European presence in an increasingly dynamic global space market. By pooling our talent, resources, expertise and R&D capabilities, we aim to generate growth, accelerate innovation and deliver greater value to our customers and stakeholders.” 

“This partnership aligns with the ambitions of European governments to strengthen their industrial and technological assets, ensuring Europe’s autonomy across the strategic space domain and its many applications. It offers employees the opportunity to be at the heart of this ambitious initiative, while benefiting from enhanced career prospects and the collective strength of the three industry leaders,” reads the joint statement. 

Negotiations with governments, unions, and the EC

The trio now faces up to two years of negotiations with governments, unions, and the European Commission over the deal, which has implications for activities in Britain, Germany, Italy, and France, reports Reuters.

Italian unions asked for more details and mentioned that the deal should help the country’s industry compete globally. It may also face opposition from the smaller German satellite company OHB, adds the report.

The companies shared a few details about governance but pledged not to use rotating leadership or make appointments based on nationality.

These practices have caused problems in the European aerospace industry, especially for Airbus, says the report.

The new company could be operational in 2027, subject to regulatory approvals and satisfaction of other closing conditions.

Thales: Defence, Aerospace, and Cyber & Digital

Thales specialises in advanced technologies for the Defence, Aerospace, and Cyber & Digital sectors.

The group invests more than €4B per year in Research & Development in key areas, particularly for critical environments, such as Artificial Intelligence, cybersecurity, quantum and cloud technologies.

In 2024, the Group generated sales of €20.6B.

Leonardo: International industrial group

Leonardo is an international industrial group, among the main global companies in Aerospace, Defence, and Security (AD&S).

With 60,000 employees worldwide, the company approaches global security through the Helicopters, Electronics, Aeronautics, Cyber & Security and Space sectors.

It is a partner on the most important international programmes such as Eurofighter, JSF, NH-90, FREMM, GCAP, and Eurodrone.