Andy Burnham Urged to Give £2.4bn Military Satellite Deal to Airbus

By the Editorial Team · Saturday, July 25, 2026

The UK government is deciding whether to award the £2.4 billion Skynet 6 military satellite contract to Airbus, which has established UK facilities and supports thousands of jobs, or to US firm Lockheed Martin, which promises new jobs and close US military ties. This choice will test Prime Minister Andy Burnham’s support for domestic industry and impact the future of the UK’s aerospace sector and sovereign defence capabilities.

The UK government is facing pressure over a £2.4 billion contract to build the Skynet 6 wideband satellite system, with calls to award the project to European aerospace manufacturer Airbus instead of the US company Lockheed Martin. The decision, expected as early as August 1, is seen as an early test of new Prime Minister Andy Burnham’s commitment to supporting British industry through public procurement.

The Skynet 6 system will involve two geostationary satellites designed to carry sensitive data for the Ministry of Defence (MoD). Airbus, headquartered in France but with satellite design and manufacturing facilities in Stevenage, Hertfordshire, and Portsmouth, Hampshire, has been involved in the UK’s military satellite programmes for decades, including the current Skynet 5 system. Its involvement is credited with sustaining hundreds of skilled jobs directly and thousands more in the supplier network.

Sharon Graham, general secretary of the Unite union, warned that awarding the contract to Lockheed Martin would jeopardise up to 600 jobs linked to the British-made satellites and called such a move a “massive mistake” both industrially and politically. Unite, alongside Labour MP Kevin Bonavia representing Stevenage, has urged Burnham’s administration to back the domestic aerospace sector, seeing the contract as critical to preserving sovereign defence capabilities and building on the UK’s existing expertise.

Lockheed Martin, which declined to comment directly on the satellite competition, has proposed creating roughly 500 jobs in northeast England, including an assembly plant in Durham, alongside 1,500 roles in the wider supply chain. The company emphasizes its commitment to UK government contracts, UK-based staff, and collaboration with British universities, notably through a research partnership with Northumbria University in Newcastle. Lockheed executives highlight that their offer includes the potential for increased UK exports and closer integration with the US military.

Critics of Lockheed’s bid argue that it would largely rely on American intellectual property rather than British-developed technology, posing concerns about the long-term impact on the UK’s domestic aerospace industry. However, Lockheed has pledged to retain any intellectual property created in the UK, aiming to leverage existing UK talent and supply chains.

Industry insiders have suggested that choosing Lockheed could lead Airbus to relocate its satellite manufacturing elsewhere, which might undermine the UK’s position in the global satellite defence market. The contract is also considered significant due to a planned merger involving Airbus and other European aerospace firms, which could affect the future of UK aerospace infrastructure.

Labour MP Bonavia described the project as a crucial opportunity for the new government to support British manufacturing and maintain the UK’s role at the forefront of military satellite technology. Meanwhile, the Ministry of Defence is expected to announce its decision soon amid these competing interests and strategic considerations. Airbus has not issued a comment on the ongoing procurement process.

This article was reported by synthesizing coverage from multiple independent news outlets to present a balanced, unbiased account. Read about our editorial standards. Spotted an error? Let us know.