Airbus warns Britain against choosing Lockheed Martin for Skynet — The Guardian

Airbus CEO Guillaume Faury has warned UK Prime Minister Andy Burnham about the possible selection of the US-based Lockheed Martin to manufacture Skynet military satellites. According to The Guardian, the Airbus chief believes that the decision on the £2.4 billion contract could have long-term consequences for the country’s role in the European military satellite sector.

Skynet 6 satellite contract

Under the Skynet 6 contract, satellites are to be manufactured that will transmit the most sensitive communications of the British armed forces until 2042. They are intended to replace the Skynet 5 system operated by Airbus.

Several sources told the publication that no final decision has yet been made. At the same time, they said that the UK Ministry of Defence is leaning toward Lockheed Martin’s proposal. Burnham and Chancellor John Healey are expected to make the final decision. The winner had previously been expected to be selected in the summer, but the process was delayed, including because of Burnham taking office.

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Arguments from Airbus and Lockheed Martin

According to the publication, Faury warned in a letter about the long-term consequences for the British space sector if Airbus loses the tender. Senior industry representatives had previously said that without the next Skynet contract, Airbus’s UK satellite operations could become unviable. Under that scenario, the company could close sites in Stevenage and Portsmouth, where 600 people work.

Airbus, Thales and Leonardo are working to combine their space divisions under the Bromo project. The aim is to create a single European company capable of competing with leading US manufacturers. According to The Guardian, Faury also warned that the loss of viability of UK operations could deprive the country of the opportunity to become a European hub for military satellite communications after the merger is completed.

Lockheed Martin says that its UK subsidiary will have full control over the satellites, which will ultimately be built in the United Kingdom. The company plans to create manufacturing capacity in north-east England, and its proposal includes a new factory in Durham. North East England Mayor Kim McGuinness said that the project could attract £100 million in investment and create 500 highly skilled jobs.