Key facts
- Airbus CEO warned the UK could lose its key role in the European space industry if Lockheed Martin wins a £2.4 billion satellite contract.
- The contract is for the UK's Skynet 6 military satellite system, providing sensitive communications until 2042.
- Airbus's UK operations could become unviable, potentially leading to site closures, if it loses the bid.
- Lockheed Martin's bid includes establishing a new manufacturing facility in the north-east of England.
- The decision rests with Prime Minister Andy Burnham and Chancellor John Healey.
Airbus's chief executive has urged UK Prime Minister Andy Burnham to consider the long-term implications for the nation's space industry when deciding on a £2.4 billion contract for military satellites. Guillaume Faury warned that awarding the Skynet 6 system manufacturing to US competitor Lockheed Martin could jeopardize the UK's position in the European space sector and potentially lead to the closure of Airbus's UK facilities, which employ 600 people. Lockheed Martin's bid includes plans for a new factory in the north-east of England, a move supported by local politicians who see it as a significant investment in reindustrialization. The company states its UK subsidiary would have control over the satellites and create jobs and supply chain opportunities. However, Airbus argues that losing the contract could impact its ability to participate in a planned merger of European space subsidiaries, Project Bromo, which aims to create a rival to US companies. The decision, which also involves Chancellor John Healey, has been delayed and comes amid broader concerns about reliance on US technology, highlighted by recent issues with Ukraine's access to Starlink. Airbus, Thales, and Leonardo are working on merging their space operations to form a stronger European entity. The Skynet 6 system is crucial for the British armed forces' sensitive communications until 2042.