Airbus chief is said to warn prime minister that a Lockheed award could cost UK its European role
Airbus chief Guillaume Faury is understood to have written to the prime minister over the £2.4bn Skynet 6 contract, the Guardian reports. Lockheed Martin's rival bid includes a Durham factory that north-east politicians back.
The Scientist · Science desk
£2.4bn Skynet 6 decision rests with Burnham and Healey; Lockheed bids with a Durham factory north-east politicians back; industry figures claim Airbus's Stevenage and Portsmouth sites, employing 600, might close; Faury is understood to warn the UK could miss being the European hub.
- Who has to decide decision Burnham and John Healey The final decision on the Skynet contract rests with Burnham and the chancellor, claim 15
- What's now possible capability Lockheed Martin Bids for the £2.4bn contract with a proposal that includes a new factory in Durham, claim 1
- Who's exposed exposure North-east England politicians Have lobbied in favour of the Lockheed Martin bid and its new Durham factory, claim 2
- Who's exposed exposure Airbus Stevenage, Portsmouth Sites employing 600 people might close without the next contract, unnamed senior industry figures claim, claim 16
- What it costs cost The UK Could miss being the European hub for military satellite communications, Faury is understood to have warned, claim 5
| Who | How | Kind | Claim |
|---|---|---|---|
| Burnham and John Healey | The final decision on the Skynet contract rests with Burnham and the chancellor | decision | 15 |
| Lockheed Martin | Bids for the £2.4bn contract with a proposal that includes a new factory in Durham | capability | 1 |
| North-east England politicians | Have lobbied in favour of the Lockheed Martin bid and its new Durham factory | exposure | 2 |
| Airbus Stevenage, Portsmouth | Sites employing 600 people might close without the next contract, unnamed senior industry figures claim | exposure | 16 |
| The UK | Could miss being the European hub for military satellite communications, Faury is understood to have warned | cost | 5 |
What happened
- Skynet 6 satellites would carry the armed forces' most sensitive communications up to 2042 and replace Skynet 5, which Airbus operates.
- Faury is also understood to have warned that the UK could miss the chance to be Europe's military satellite communications hub if Airbus's British operation became unviable.
- Several sources told the Guardian that no final decision has been made, though some believe the Ministry of Defence prefers Lockheed Martin's bid.
- A decision expected in the summer has been delayed, in part by Burnham's arrival in office.
Why it matters
- Who's exposed exposure If unnamed senior industry figures are right, 600 jobs at Airbus's Stevenage and Portsmouth sites depend on this award.
- Who has to decide decision Burnham and the chancellor, John Healey, must weigh Airbus's European-hub argument and Lockheed's Durham jobs against each bid's price and capability.
- What doesn't add up contradiction Unite questions whether the UK can rely on the US government, while people close to Lockheed Martin strongly deny Washington would control the satellites.
Faury's warning leans on Project Bromo, the merger of the Airbus, Thales and Leonardo space subsidiaries that the three manufacturers are working on to build a single European champion [4]. The Guardian describes the merger as work under way, so the hub in question would sit inside a combined company that has not yet been formed.
Lockheed Martin has put its case in terms of place and local control. A spokesperson said the company was "unable to comment on the ongoing procurement process", but described what its UK subsidiary would offer: "It will create jobs, supply chain opportunities and the potential for exports. It will have a UK design authority and a UK chief engineer." [7]
Luke Akehurst, the Labour MP for North Durham, said: "This represents a massive investment in the reindustrialisation of the north-east of England, building on our region's proud heritage of advanced manufacturing." [8]
The sovereignty question has a recent example. Ukraine complained that its access to Elon Musk's Starlink network was restricted, apparently at the behest of the US government, according to the Guardian [9]. A government document for a related system, which the Guardian cites, lists radio jamming, hacking and direct physical attacks among the threats satellites must withstand [12]. It covers a different system, so it describes the threat environment and does not rate either bid.
In our view the Airbus side of the story is the less firm of the two. The account of the letter rests on what the Guardian says is understood and thought [13]. The viability claim is attributed to unnamed senior industry figures [16]. Lockheed's case has a spokesperson and an MP on the record.
The Guardian gives neither bid's price nor how either bidder's satellites would perform. The £2.4bn is the value of the contract as the Guardian gives it [1].
What to watch
- Whether Burnham and Healey announce an award, and on what financial and capability terms.
- Whether Airbus or the Ministry of Defence confirms what Faury's letter actually says.
- Progress on Project Bromo, since the European-hub scenario Faury is said to describe depends on that merger being completed.
Clarity's read
What the record supports and how the coverage leans. The claims behind it follow.
Reality
- Evidence35
- Adoption
- Not scored
- Hype gap
- Not scored
- Incentives80
- Confidence50
Claim ledger
Ranked by verification strength, evidence, and original report placement.
- [1]
The Skynet 6 contract is worth £2.4bn, and Lockheed Martin, Airbus's US rival, has bid for it with a proposal that includes a new factory in Durham.
- [2]
Politicians in north-east England have lobbied in favour of the Lockheed Martin bid, which would include a new factory in Durham.
- [3]
The military satellites under the Skynet 6 contract will carry the British armed forces' most sensitive communications up to 2042, replacing the Skynet 5 system operated by Airbus.
- [4]
Airbus, Thales and Leonardo are working on a long-awaited merger of their space subsidiaries, known as Project Bromo, to build a single European champion with the scale to rival leading US companies.
- [5]
Faury is understood to have warned that if Airbus's British operation were no longer viable, the UK could miss the chance to be the European hub for military satellite communications once the space merger was complete.
- [6]
Lockheed Martin says its UK subsidiary will have full control over the satellites eventually built in the UK, and people close to the company have strongly denied that the US government would have control over them.
- [7]
A Lockheed Martin spokesperson said the company was "unable to comment on the ongoing procurement process", but added: "It will create jobs, supply chain opportunities and the potential for exports. It will have a UK design authority and a UK chief engineer."
- [8]
Luke Akehurst, the Labour MP for North Durham, said: "This represents a massive investment in the reindustrialisation of the north-east of England, building on our region's proud heritage of advanced manufacturing."
- [9]
The delayed decision comes after Ukraine complained that its access to Elon Musk's Starlink satellite network was restricted, apparently at the behest of the US government.
- [10]
Unite, one of the Labour party's biggest union backers, warned against "handing the British space industry over to the Americans" at a time of increased questions over whether the UK can rely on the US government.
- [11]
Burnham will also have to consider the two bids on their financial terms and the capabilities the two companies can offer.
- [12]
A government document for a related system said satellites had to deal with the "proliferation of counterspace capabilities to disrupt, deny, degrade or destroy space-based enablers", and highlighted radio jamming, hacking and direct physical attacks as possible concerns.
- [13]
Guillaume Faury, chief executive of Airbus, is understood to have written to the prime minister, Andy Burnham, suggesting the choice of Skynet provider could have effects for decades on the UK's strength in military satellites in Europe; it is thought the letter warned of longer-term consequences for the UK's role in the European space sector if Airbus lost out.
- [14]
Several sources said they believed no final decision on the contract had been made, though some said they believed the Ministry of Defence preferred Lockheed Martin's bid.
- [15]
The final decision on the contract rests with Burnham and the chancellor, John Healey.
- [16]
Senior industry figures have previously claimed that Airbus's UK satellite operations would not be viable without the next Skynet contract, meaning the company might close its sites at Stevenage and Portsmouth, which employ 600 people.
- [17]
A decision on the contract had been expected in the summer but has been delayed in part by the arrival of Burnham in office.
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Sources
1 independent publisher whose own reporting we read for this story.
- theguardian.comUK risks losing key role in European space industry over satellite contract, says Airbus boss
2 articles · October 16, 2026
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