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Efforts to form a major new European satellite manufacturer involving Airbus, Thales, and Leonardo have reportedly hit a deadlock, according to La Tribune. The negotiations, ongoing for several months, aimed to create a unified European satellite powerhouse capable of competing with Elon Musk’s SpaceX, which has rapidly expanded its dominance in both satellite production and deployment through SpaceX’s Starlink constellation.
Sources suggest that while the discussions gained traction last week, talks stalled over disagreements concerning the distribution of workshare between the three aerospace giants. This issue has become the key sticking point preventing progress toward a finalized agreement. Thales and Leonardo, who jointly operate Thales Alenia Space—a direct competitor to Airbus in the satellite manufacturing industry—have requested more time to negotiate terms that would ensure fair participation and equitable workload distribution.
The envisioned partnership would mark one of the most significant consolidations in the European space industry, aligning with broader efforts to bolster Europe’s technological independence and competitiveness in the global satellite market. Industry observers note that a unified entity could streamline production, enhance research collaboration, and reduce costs through shared resources and expertise.
However, the current impasse highlights persistent challenges in balancing national and corporate interests within Europe’s aerospace sector. As the global race for satellite innovation intensifies, reaching an agreement remains crucial for Europe to rival the scale and efficiency of U.S. and Chinese space enterprises.
If successful, the partnership could reshape the continent’s space manufacturing landscape, strengthening Europe’s role in next-generation communications, Earth observation, and defense technologies. For now, though, the talks remain suspended as Airbus, Thales, and Leonardo attempt to bridge their strategic differences.
