{"id":61641,"title":"Airbus chief warns UK risks European space role over satellite contract","publisher":"Stockmark.IT","author":"Stockmark.IT Website","published":"2026-10-17T08:57:32+00:00","modified":"2026-10-17T08:57:32+00:00","canonical_url":"https://stockmark.it/uk-risks-losing-key-role-in-european-space-industry-over-satellite-con/","markdown_url":"https://stockmark.it/uk-risks-losing-key-role-in-european-space-industry-over-satellite-con.md","json_url":"https://stockmark.it/uk-risks-losing-key-role-in-european-space-industry-over-satellite-con.json","category":"Business","categories":["Business","EU","EU Trade"],"featured_image":"https://i0.wp.com/stockmark.it/wp-content/uploads/2026/10/airbus-chief-warns-uk-risks-european-space-role-over.png?fit=1536%2C1024&quality=80&ssl=1","format":"news","language":"en-GB","content":"The chief executive of Airbus has written to Prime Minister Andy Burnham to warn that selecting its American rival Lockheed Martin for the manufacture of new military satellites could jeopardise the United Kingdom’s position within the European space industry. The intervention marks a significant escalation in lobbying efforts surrounding the multi-billion pound Skynet 6 contract, as the government weighs competing bids from the two aerospace giants. Faury’s correspondence suggests that the choice of provider will have lasting implications for British strength in military satellite communications across Europe, aiming to influence the final decision in favour of the French-led consortium.\n\nThe Skynet 6 programme is valued at approximately £2.4bn and will provide the British armed forces with their most sensitive communications capabilities until 2042. The new system is set to replace the existing Skynet 5 network, which is currently operated by Airbus. While the decision has been delayed, partly due to the recent change in government leadership, sources indicate that no final choice has yet been made. However, some observers believe the Ministry of Defence may lean towards the Lockheed Martin proposal, although the ultimate decision rests with the Prime Minister and Chancellor John Healey. The timing of the procurement is particularly sensitive, occurring after Ukraine raised concerns that its access to the Starlink satellite network was restricted, reportedly at the behest of the US government.\n\nPoliticians in north-east England have actively lobbied in support of the Lockheed Martin bid, which includes plans for a new manufacturing facility in Durham. Luke Akehurst, the Labour MP for North Durham, described the proposed investment as a major contribution to the reindustrialisation of the region, building on its heritage in advanced manufacturing. Kim McGuinness, the mayor for north-east England, stated that securing the contract would represent a transformative opportunity for the local space and security sector. She noted that the investment would bring £100m to the region and create 500 high-skilled jobs, alongside wider benefits for the supply chain. Lockheed Martin has emphasised that its UK subsidiary will maintain full control over the satellites built in the country, with a UK design authority and chief engineer in place.\n\nConversely, senior industry figures have warned that Airbus’s UK satellite operations may not be viable without the next Skynet contract. It is understood that Faury’s letter highlighted the potential closure of Airbus sites in Stevenage and Portsmouth, which collectively employ 3,000 people, including 600 dedicated to Skynet work. The letter also cautioned that losing the contract could prevent the UK from becoming the European hub for military satellite communications. This concern is linked to Project Bromo, a long-awaited merger between the space subsidiaries of Airbus, Thales and Leonardo, aimed at creating a single European competitor with the scale to rival leading US firms.\n\nThe debate has also drawn attention from trade unions, with Unite warning against transferring control of the British space industry to American entities during a period of uncertainty regarding US reliability. A government document related to the system outlined the need for satellites to withstand various threats, including radio jamming, hacking and direct physical attacks. While the first Skynet satellite was launched in 1969, the current procurement process remains under full evaluation. A Ministry of Defence spokesperson confirmed that both UK-based bidders are being assessed and must offer satellites that are assembled, integrated and tested within the United Kingdom."}