Thales, Airbus, and Leonardo reached a key milestone on January 26 in the “Bromo” project, a merger of satellite activities planned for 2027 aimed at competing with Starlink and Chinese players.
Summary
On January 26, 2026, Thales, Airbus, and Leonardo consolidated a major milestone in their space alliance known as the Bromo project, an industrial cooperation initiative aimed at creating a European satellite champion operational in 2027. This new entity will bring together the satellite and space services divisions of the three groups to achieve industrial critical mass in the face of international giants such as Starlink (SpaceX) and Chinese constellations. With approximately 25,000 employees and projected revenues of €6.5 billion, it aims to strengthen European strategic autonomy in telecommunications, observation, navigation, and space security. The project still needs to be approved by regulators and governments, particularly with regard to European Union competition rules. Beyond simple commercial competitiveness, Bromo is part of Europe’s response to the technological and geopolitical challenges of the global space sector.
The Bromo project: a strategic industrial merger
The Bromo project is a major European industrial consolidation initiative aimed at combining the main space activities of the Airbus (France/Germany), Thales (France), and Leonardo (Italy) into a single international entity. Its name, inspired by the Indonesian volcano of the same name, symbolizes the ambition to create a robust and integrated player in a field dominated by American and Chinese players.
A memorandum of understanding (MoU) was signed in October 2025, and January 26, 2026 marks the date on which the partners formally reached a key milestone in the process, signaling a decisive move towards the formation of this joint venture. Operational implementation is planned for 2027, subject to approval by the competition authorities and governments concerned.
The future company is expected to have approximately 25,000 employees across Europe and generate annual revenues of around €6.5 billion, based on the combined current satellite activities of the three groups.
Industrial contributions from the partners
The new entity will combine complementary skills from the space divisions of the three groups:
- Airbus will contribute its Space Systems and Space Digital activities from its Airbus Defence and Space division, which focus on satellite manufacturing and digital space systems.
- Leonardo will integrate its space division, as well as its stakes in Telespazio and Thales Alenia Space (joint venture with Thales), which cover satellite manufacturing, in-orbit operations and related services.
- Thales will contribute its stakes in Thales Alenia Space, Telespazio, and component manufacturing such as Thales SESO (specialist in mirrors and structures for satellites).
The capital structure of the future entity would be designed to maintain a balance between the three partners, with 35% for Airbus and 32.5% each for Leonardo and Thales.
A transformed global space market
Since the dawn of the era of low Earth orbit (LEO) satellite constellations, the space industry landscape has changed dramatically. Players such as Starlink, a subsidiary of SpaceX, have disrupted traditional models by launching thousands of satellites to provide global internet connectivity services. By the end of 2025, Starlink had launched more than 8,000 satellites into low Earth orbit, exceeding a total of 10,000 satellites and creating a unique and highly competitive network infrastructure.
So-called geostationary (GEO) satellites, positioned at an altitude of approximately 36,000 km, have historically dominated traditional telecommunications services. However, demand for these solutions has fallen sharply in the face of low-orbit offerings, which allow for lower latencies and more flexible global coverage.
This transformation is putting pressure on the traditional European space industry, which specializes in large geostationary satellites, and is increasing the appeal of more innovative and competitive solutions.
Technical objectives and target markets
The future entity resulting from the Bromo project does not only aim to produce satellites; it also aims to offer a complete portfolio of space solutions, including satellite platforms, communication systems, data services, and civil and military applications.
Unlike Starlink, which is building its own constellation and offering direct internet services to the general public, the new European structure is expected to focus on manufacturing satellites for public and private programs, as well as specialized services for governments and operators. It could support projects such as IRIS², the European secure connectivity constellation that aims to deploy several hundred satellites for government communications and services.
Thus, the commercial target is not to reach the tens of thousands of satellites like Starlink, but rather to provide advanced satellite systems tailored to sovereign, institutional, or industrial needs.
Industrial and regulatory challenges
Even though the framework agreement has been signed and the project is moving forward, several challenges remain before Bromo becomes operational:
- Regulatory approval: The project must receive the green light from the European Commission and other competition authorities, which closely monitor potential oligopolistic structures in strategic industries.
- National harmonization: European governments, particularly in Italy, France, and Germany, must coordinate their positions on governance and public participation in this new entity.
- Operational synergies: Consolidating rival companies’ divisions involves restructuring, integrating production chains, and optimizing product portfolios—a complex process that takes time and requires substantial investment.
The question of Europe’s lag behind the giants
One of the major challenges of the Bromo project is to determine whether Europe can catch up with competitors such as SpaceX and Chinese programs. Today, the gap in terms of satellite volume, production rate, and cost reduction is clear. The European strategy favors an integrated, diversified approach geared toward sovereign and specialized needs, rather than an exact replica of the Starlink model.
However, the ambitious timetable, which aims to have the new entity operational by 2027, coincides with European programs such as IRIS², which plan to deploy hundreds of satellites by the end of the decade. This potential cooperation between Bromo and institutional initiatives could create a robust industrial dynamic, even if the challenge remains significant.
What role for European launchers?
One strategic issue that is often raised is access to high-performance, competitive launchers.
Europe now has the Ariane 6 launcher, operated by Arianespace, which aims to reduce costs and increase launch rates. Although competitive for heavy payloads and institutional missions, it remains less suitable than partially reusable systems such as those from SpaceX in terms of unit costs.
The possibility of using Ariane 6 to launch satellites produced by Bromo will depend on the specific needs of the missions and the economic framework. At this stage, the issue of reducing launch costs remains a key challenge in supporting a more aggressive European satellite industry in global markets.
More complex global competition
The creation of Bromo coincides with other European efforts to strengthen technological sovereignty. Civil and military satellite programs, navigation (Galileo), observation (Copernicus), and secure services are becoming priority areas. Industrial consolidation is part of a broader dynamic aimed at ensuring Europe’s competitiveness in a sector that is now as strategic as aeronautics or defense.
As the global space industry organizes itself around massive constellations, dual (civil-military) capabilities, and rapid innovation, the success of the Bromo project will depend on its ability to combine technology, economies of scale, and strategic vision. More than just a competitor to Starlink, this initiative could redefine Europe’s place in 21st-century space.
Sources
– Airbus, Leonardo, Thales MoU press release, Oct. 2025,
– Press analyses of the Bromo project,
– Industry information on satellites and constellations,
– IRIS² European project data.
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