UK risks losing key role in European space industry over satellite contract, says Airbus boss
Guillaume Faury writes to Andy Burnham warning him against choosing US firm Lockheed Martin to build Skynet satellites The boss of Airbus has told Andy Burnham that choosing its US rival Lockheed Martin to manufacture military satellites could cost the UK a key role in the European space industry, intensifying a last-minute lobbying effort for the £2.4bn contract. It is understood that Guillaume…
Airbus CEO Guillaume Faury has warned Prime Minister Andy Burnham against selecting US defense contractor Lockheed Martin to manufacture Skynet military satellites. Doing so, Faury claims, could endanger the UK's position within the European space industry for years to come. The Skynet 6 contract, worth £2.4bn, will provide the British armed forces with the most sensitive communications up to 2042, replacing the current Skynet 5 system, which is operated by Airbus.
The decision on which company will build the sovereign satellites remains unresolved, though Lockheed Martin's bid seems to be favored by the Ministry of Defence. A decision is expected to be made soon by Burnham and Chancellor John Healey, as it comes at a crucial time, following Ukraine's complaint about restricted access to Elon Musk's Starlink satellite network, allegedly ordered by the US government.
The decision of the UK's satellite manufacturing provider could have significant implications for the region's economy. Airbus is currently working on a merger with Thales and Leonardo to create a strong European player in the space industry, which would allow it to compete with US companies. If the British operation were to cease, it could result in the closure of the sites in Stevenage and Portsmouth, which currently employ around 3,000 people, including 600 working on Skynet.
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