Airbus warns UK satellite award could weaken Britain’s European space role
Airbus chief executive Guillaume Faury has warned the UK government that awarding a £2.4bn military satellite contract to US firm Lockheed Martin could weaken Britain’s long-term place in Europe’s space industry. The decision concerns the Skynet 6 system, which will carry the armed forces’ most sensitive communications through to 2042, and comes amid wider questions about reliance on US-controlled satellite services.
Airbus currently operates Skynet 5, and industry figures say losing the new contract could put its UK satellite sites in Stevenage and Portsmouth, employing 3,000 people, at risk. Lockheed Martin says its UK subsidiary would control the satellites’ design and engineering and plans a factory in Durham; regional politicians support the bid for its jobs and investment. The decision, delayed from the summer, is expected to be made by Andy Burnham and Chancellor John Healey, though no final choice has been confirmed.
- Airbus warns the contract could shape the UK’s role in European space.
- Lockheed Martin’s bid includes a new Durham factory.
- The £2.4bn decision has not yet been confirmed.
Both sides, in good faith
The strongest fair case each way — we don't pick a winner.
The case for
Awarding the contract to Lockheed Martin could bring substantial investment and skilled jobs to the UK, including a planned factory in Durham, while its UK subsidiary says it would control the system’s design and engineering. Choosing a US supplier may also offer a capable route to delivering secure military communications, provided the UK retains meaningful control over the system and its data.
The case against
Keeping the contract with Airbus could sustain thousands of skilled jobs at established UK sites and preserve British expertise and influence in Europe’s space industry. Given Skynet’s role in sensitive military communications through 2042, advocates may also see a European supplier as a way to reduce reliance on US-controlled services and strengthen the UK’s long-term industrial capability.
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Originally published by The Guardian as “UK risks losing key role in European space industry over satellite contract, says Airbus boss”.