The creation of the company was concurrent with the creation of Telespazio Holding. This too was a merger of Finmeccanica and Alcatel businesses (Telespazio and Alcatel's Space Services and Operations respectively).
On April 5, 2006 Alcatel agreed to sell its share of Alcatel Alenia Space (and its 33% share of Telespazio) to Thales Group.
The European Union agreed in this financial operation on April 10, 2007.
The company built the Multi-Purpose Logistics Modules, which was used to transport cargo inside the Space Shuttle orbiters. They also built several modules for the International Space Station, those modules are: Cupola, Columbus, Harmony, Tranquility and Leonardo. They currently build also the pressurized vessels for the Automated Transfer Vehicle and Cygnus spacecraft.