On Nov. 5, reports indicated that the UK Ministry of Defence (MoD) recommended selecting Lockheed Martin over incumbent contractor Airbus Defence and Space for the £2.4 billion ($3.2 billion) next-generation Skynet military communications satellite program.
UK Prime Minister Andy Burnham is scheduled to review the MoD’s recommendation and make a final determination within two weeks.
Industrial Impact and Manufacturing Commitments
The forthcoming award covers the Skynet Wideband Satellite System (WSS), designed to provide sovereign, high-capacity military satellite communications for British armed forces and international allies. The recommendation has prompted significant domestic industrial debate regarding manufacturing footprints and aerospace employment.
Airbus, which manufactures spacecraft at sites in Stevenage and Portsmouth, warned that losing the contract could lead to the elimination of up to 3,000 UK jobs. Lockheed Martin has countered by pledging to establish an entirely new UK-based manufacturing facility to build the next-generation satellites domestically.
Program Continuity and Final Ruling
The Skynet architecture forms the operational core of the UK’s military space communications capability. Airbus previously served as the prime contractor across multiple generations, securing the contract for the Skynet 6A satellite in 2020 and constructing the currently operational Skynet 5 constellation.
Prime Minister Burnham’s upcoming evaluation will weigh the MoD’s procurement assessment against long-term sovereign industrial capacity and defense employment. The conclusion of the two-week review will determine the primary industrial partner for the UK’s military communications space infrastructure for the decade ahead.
