The £2.4bn military satellite contract for the UK Ministry of Defence’s Skynet 6 wideband satellite system has sparked a fierce bidding war between European manufacturer Airbus and US rival Lockheed Martin. Unite union general secretary Sharon Graham has urged Andy Burnham to award the contract to Airbus, warning that choosing the US company could put up to 600 jobs at risk in Stevenage and Portsmouth.
Why the Skynet 6 Contract Matters
The Skynet 6 wideband satellite system (WSS) will consist of two geostationary satellites designed to carry the UK Ministry of Defence’s most sensitive data. This contract is seen as an early test of Burnham’s pledge to use “public procurement to back British industry.” It also marks one of the first major spending decisions for new defence secretary Wes Streeting, as the UK navigates its relationship with the US under Donald Trump’s nationalistic administration.
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Airbus: Protecting Existing UK Jobs
Airbus, headquartered in France but with satellite design and manufacturing facilities in Stevenage and Portsmouth, currently employs hundreds of workers on these projects. Unite argues that awarding the contract to Airbus would preserve these high-skilled jobs and maintain UK sovereignty over sensitive defence technology. Critics of the Lockheed bid say the US company would rely on American intellectual property rather than using technology developed in Britain.
Lockheed Martin: Promising New Jobs and Exports
Lockheed Martin has pledged to create about 500 direct jobs in north-east England, including an assembly facility in Durham, plus another 1,500 jobs in the broader supply chain. The company also highlights potential for exports from the UK to other countries and integration with the US military. Lockheed has committed to keeping any intellectual property it develops in the UK and has already invested in a research partnership with Northumbria University in Newcastle.
Comparison: Airbus vs Lockheed Martin Bids
| Factor | Airbus | Lockheed Martin |
|---|---|---|
| Job creation | Preserves ~600 existing jobs | ~500 direct + 1,500 supply chain jobs |
| Intellectual property | UK-developed technology | US IP with pledge to keep UK-developed IP |
| Export potential | Limited | High, with US military integration |
| Political alignment | Supports UK manufacturing base | Strengthens US-UK defence ties |
Key Takeaways
- Unite union warns that awarding the contract to Lockheed Martin could be a “massive mistake” for UK jobs.
- Airbus offers continuity for existing workers and UK-developed technology.
- Lockheed Martin promises new jobs in north-east England and export opportunities.
- The decision will test Burnham’s commitment to backing British industry.
- The outcome could influence future UK defence procurement under the new government.
FAQ
What is the Skynet 6 military satellite contract?
The Skynet 6 wideband satellite system (WSS) is a £2.4bn contract to build two geostationary satellites for the UK Ministry of Defence to carry sensitive data.
Why is Unite urging Andy Burnham to choose Airbus?
Unite argues that choosing Airbus would protect up to 600 existing jobs in Stevenage and Portsmouth and keep intellectual property developed in the UK.
What does Lockheed Martin offer in its bid?
Lockheed Martin promises 500 direct jobs in north-east England, plus 1,500 supply chain jobs, along with export potential and integration with the US military.
How does this contract affect UK-US relations?
The decision is seen as a test of the UK’s relationship with the US under President Trump, who encourages allies to buy American military equipment.
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