ROME (Reuters) – Italian aerospace and defence group Leonardo is working with France’s Thales and Airbus on a joint strategy for the space sector, the head of the group said on Tuesday.
“We are very active in stimulating large European alliances… and now we are working hard with Thales and Airbus on new strategic visions in space,” CEO Roberto Cingolani said during a hearing in Italy’s lower house of parliament, without elaborating.
His comments come amid reports that Airbus and Thales are exploring a partnership in some space activities, with initial talks focusing on overlapping satellite activities. A partnership could be between Airbus and Thales Alenia Space, a 67%-33% joint venture between Thales and Leonardo.
Leonardo declined to comment on the reports. Apart from EU approval, any alliance or merger negotiations between Airbus and Thales Alenia Space would need the support of the French and Italian governments.
Leonardo and Thales also have a satellite services joint venture, Telespazio.
Airbus and Thales Alenia Space are Europe’s two largest manufacturers of satellites for communications, navigation and surveillance.
Demand for their fixed satellites is under increasing pressure, as traditional manufacturers face competition from massive constellations of deployable satellites in low Earth orbit, such as Elon Musk’s SpaceX Starlink network.
In its 2024-2028 industrial plan, Leonardo said it would take advantage of opportunities in space, a sector it sees as key to defence in the coming years with room for further growth given that it accounted for just under 4% of the company’s annual core profit in 2023.