Airbus and Lockheed Martin vie for £2.4 billion UK Skynet 6 contract
The UK must choose Airbus or Lockheed Martin to build its £2.4 billion Skynet 6 military satellites, the Guardian and The News in Portsmouth reported. Some reports say the Defence Ministry favors Lockheed, which plans a new plant in north-east England. The ministry says no final decision has been made, the Guardian reported.
Prime Minister Andy Burnham must choose whether Airbus or Lockheed Martin builds the UK's £2.4 billion Skynet 6 military satellites, the Guardian and The News in Portsmouth reported. The News said a decision is expected soon.
The satellites will carry the armed forces' most sensitive communications up to 2042, replacing the Skynet 5 system that Airbus runs, the Guardian reported. The News said 17 NATO allies rely on the satellite links.
Some sources believe the Defence Ministry prefers Lockheed Martin's bid, the Guardian reported. The News said it was reported this week that the ministry is pushing to sign with the US company. The final decision rests with Burnham and the chancellor, John Healey, the Guardian reported. The union Unite said it understands the decision has gone to Number 10, The News reported.
Lockheed Martin plans to build the satellites at a new factory in north-east England, the Guardian and The News reported. The News said the plant would cost £85 million and create about 500 jobs. Politicians in the north-east have lobbied for the bid, the Guardian reported.
Airbus chief executive Guillaume Faury has written to Burnham, the Guardian reported. He warned that picking Lockheed could cost the UK a key role in Europe's space industry, according to the Guardian. Airbus's satellite work might not survive without the contract, the Guardian reported. The company could then close its Stevenage and Portsmouth sites, which employ 3,000 people, including 600 on Skynet, the Guardian reported.
Portsmouth North MP Amanda Martin and Stevenage MP Kevin Bonavia wrote to Burnham to back Airbus, The News reported. "It would take years to replicate these jobs elsewhere in the country," their letter said, according to The News. Airbus would not comment, The News reported.
A Defence Ministry spokesperson said, "This is an ongoing procurement process, and no final decisions have been made," according to the Guardian. A decision had been expected in the summer but was delayed in part by Burnham's arrival in office, the Guardian reported.
What we know: Burnham's office must pick Airbus or Lockheed Martin for the £2.4 billion contract, and some reports say the ministry favors Lockheed.
What we don't: When the decision will come, and what it would mean for jobs at Airbus's Portsmouth and Stevenage sites.
Where outlets agree The Guardian and The News in Portsmouth report that Burnham must choose between Airbus and Lockheed Martin for the £2.4 billion Skynet 6 contract.
Where they differ The outlets cited here report the same key facts so far.