The chief executive of Airbus has written to the UK’s prime minister expressing concerns that awarding a major military satellite contract to US rival Lockheed Martin could diminish the country’s standing in the European space industry for decades. The £2.4bn Skynet 6 contract involves manufacturing military satellites that will carry sensitive communications for the British armed forces through 2042, replacing the current Skynet 5 system.
Airbus has warned that losing the contract could render its UK satellite operations unviable, potentially leading to closures at facilities in Stevenage and Portsmouth that employ approximately 3,000 people, including 600 dedicated to Skynet work. The company has suggested that such an outcome could jeopardize the UK’s opportunity to serve as the European hub for military satellite communications following a planned merger of European space subsidiaries known as Project Bromo.
Lockheed Martin’s bid includes plans for a new manufacturing facility in Durham, which has garnered support from north-east England politicians and regional leaders. The company has stated that its UK subsidiary would maintain full control over satellites produced in the country and would establish design authority and engineering leadership in Britain. Meanwhile, Lockheed Martin has denied suggestions that the US government would exercise control over the satellites.
The decision, which was expected earlier this year but has been delayed, ultimately rests with the prime minister and the chancellor. A government defense organization stated that no final determination has been made, and both bidders remain under evaluation. Union organizations have raised concerns about potentially ceding control of the British space industry to American interests, citing questions about reliance on US government support.
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