UK risks losing key role in European space industry over satellite contract, says Airbus boss
News Source
β’Fri, 16 Oct 2026 14:47:16 GMT
π° What Happened
Airbus chief executive Guillaume Faury has written to UK Prime Minister Andy Burnham about a 2.4 billion pound military satellite contract. He warned that picking US rival Lockheed Martin could cost the UK a long-term role in Europe's space industry. The contract, called Skynet 6, covers the armed forces' most secret communications until 2042. Politicians in north-east England want Lockheed Martin to win because it would build a factory in Durham.
π The Backstory
Skynet 6 will replace the Skynet 5 system, which Airbus runs. Industry figures say Airbus's UK satellite sites at Stevenage and Portsmouth, which employ 3,000 people, may not survive without the deal. Airbus, Thales and Leonardo are also planning to merge their space businesses to compete with US giants.
The decision has been delayed, partly because Burnham took office. Unions warned against handing the UK's space industry to the Americans.
π― Why It Matters
The decision affects thousands of skilled jobs. It also shapes the UK's ability to run its own secure military communications.
Airbus chief executive Guillaume Faury has written to UK Prime Minister Andy Burnham about a 2.4 billion pound military satellite contract. He warned that picking US rival Lockheed Martin could cost the UK a long-term role in Europe's space industry. The contract, called Skynet 6, covers the armed forces' most secret communications until 2042. Politicians in north-east England want Lockheed Martin to win because it would build a factory in Durham.
Skynet 6 will replace the Skynet 5 system, which Airbus runs. Industry figures say Airbus's UK satellite sites at Stevenage and Portsmouth, which employ 3,000 people, may not survive without the deal. Airbus, Thales and Leonardo are also planning to merge their space businesses to compete with US giants.
The decision has been delayed, partly because Burnham took office. Unions warned against handing the UK's space industry to the Americans.
The decision affects thousands of skilled jobs. It also shapes the UK's ability to run its own secure military communications.