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UK risks losing key role in European space industry over satellite contract, says Airbus boss

UK risks losing key role in European space industry over satellite contract, says Airbus boss

Summary

Airbus has warned UK Prime Minister Andy Burnham that choosing US company Lockheed Martin for a £2.4 billion military satellite contract could reduce the UK's role in the European space industry. The contract involves building the Skynet 6 satellite system, which will support the British armed forces’ communications until 2042, with the decision still pending.

Key Facts

  • Airbus chief executive Guillaume Faury wrote to Andy Burnham about risks to the UK’s role in European space if Lockheed Martin wins the contract.
  • The Skynet 6 contract is worth £2.4 billion and will replace the current Skynet 5 military satellite system.
  • Lockheed Martin plans to open a new factory in Durham if it wins the contract, which has support from some UK politicians.
  • Airbus’s UK sites at Stevenage and Portsmouth employ 600 people and may close if Airbus loses the contract.
  • Airbus, Thales, and Leonardo are planning a merger called Project Bromo to create a strong European space company.
  • Lockheed Martin’s UK subsidiary says it will control the satellites built in the UK and will have a UK design authority and chief engineer.
  • The contract decision has been delayed partly due to changes in government leadership and competing interests.
  • Labour union Unite has expressed concerns about UK space industry control if the contract goes to an American company.
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