UK weighs £2bn satellite contract between Lockheed Martin and Airbus

Summarised from 2 outlets · Updated 16 Oct, 16:08 · Archive

The Ministry of Defence is deciding whether to award a £2 billion contract for military satellites to American defence firm Lockheed Martin or British-French company Airbus.

The Ministry of Defence is deciding whether to award a contract worth up to £2.4 billion for Britain's next-generation Skynet military satellites to Lockheed Martin or Airbus, which currently operates the existing Skynet 5 system. The satellites will carry the British armed forces' most sensitive communications up to 2042. Prime Minister Andy Burnham and Chancellor John Healey will make the final decision.

Concerns about switching to a US supplier have intensified following reports that Ukrainian forces saw their access to Elon Musk's Starlink satellite service restricted, apparently at the behest of the US government. Critics worry that US export regulations known as the International Traffic in Arms Regulations, or ITAR, would allow Washington to prevent Britain from modifying, repairing or re-exporting American-supplied military equipment. One defence source warned to The Telegraph that awarding the contract to Lockheed Martin risked giving the White House an effective 'kill switch' over the satellite system during future crises.

Airbus chief executive Guillaume Faury has written to Burnham arguing that choosing Lockheed Martin could cost the UK a key role in the European space industry for decades. Politicians in north-east England have lobbied in favour of the Lockheed Martin bid, which would include a new factory in Durham. Several sources said they believed Lockheed Martin's bid was preferred by the Ministry of Defence, though no final decision has been made.

How it is being reported

• UK risks losing key role in European space industry over satellite contract, says Airbus bossGuillaume Faury writes to Andy Burnham warning him against choosing US firm Lockheed Martin to build Skynet satellites The boss of Airbus has told Andy Burnham that choosing US rival Lockheed Martin to manufacture military satellites could cost the UK a key role in the European space industry, intensifying a last-minute lobbying effort for the £2.4bn contract. It is understood that Guillaume Faury, chief executive of France-headquartered Airbus, has written to the prime minister suggesting that the choice of provider of the Skynet system could have effects for decades to come on the UK’s…The Guardian · 16 Oct, 15:47
• Britain poised to award £2bn military satellite deal to US defence giant despite control fearsThe Ministry of Defence is on the verge of awarding a contract worth up to £2billion for Britain's next-generation Skynet military satellites to American defence contractor Lockheed Martin. The new deal would replace the current British-built system produced by Airbus in the UK. Concerns that switching from domestically developed technology to a US-sourced alternative could effectively give Washington a veto over how Britain operates the system have intensified sharply. The alarm grew following reports that Ukrainian forces saw their access to Elon Musk's Starlink satellite service…GB News · 16 Oct, 02:23

In this story: Ministry of Defence · Lockheed Martin · Airbus · Andy Burnham · John Healey · Guillaume Faury · Elon Musk · United Kingdom

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