UK Defense Unions Push Airbus for £2.4bn Skynet Satellite Contract Over Lockheed Martin

Unite is urging UK Defence Secretary Burnham to award a £2.4bn military satellite contract to Airbus instead of Lockheed Martin.

A £2.4bn British military satellite contract has become the focal point of a transatlantic industrial dispute, with the Unite union publicly warning Defence Secretary Andy Burnham that handing the Skynet 6 Weapons Support Service deal to Lockheed Martin would be a 'massive mistake.' The contract covers support services for the UK's Skynet 6 military communications satellite programme, a strategically significant piece of defence infrastructure. Unite's intervention comes amid broader questions about UK defence and trade positioning in the wake of US tariff policy. Experts and industry groups have warned that Trump's latest tariff measures — while leaving the overall UK levy unchanged from earlier arrangements — place British exporters at a disadvantage relative to EU competitors in sectors not covered by the so-called Turnberry deal struck between the UK and US. The Nikkei Asia reporting adds a wider strategic dimension, suggesting that under Burnham's leadership British China policy is expected to track closely with Washington's positions rather than chart an independent course — a posture that reflects the current UK government's emphasis on alignment with US security priorities. The satellite contract decision sits at the intersection of these pressures: awarding it to a US firm like Lockheed Martin would deepen defence-industrial ties with Washington, while an Airbus win would reinforce European supply chains at a moment when UK-EU economic relations are already under strain from tariff dynamics.

Why it matters

The Skynet 6 contract is one of the largest single UK defence procurement decisions currently in play, with direct consequences for thousands of British aerospace jobs. The outcome will also signal whether the UK government prioritises transatlantic defence alignment or domestic and European industrial capacity.

What's next

A decision on the Skynet 6 WSS contract award is awaited from Defence Secretary Andy Burnham, with no confirmed timeline reported in the sources.

Key facts

• The Skynet 6 Weapons Support Service contract is valued at £2.4 billion
• Unite union leader has publicly urged Defence Secretary Andy Burnham to choose Airbus over Lockheed Martin
• Unite described awarding the contract to Lockheed Martin as a 'massive mistake'
• Trump's latest tariffs leave the overall UK levy unchanged but disadvantage sectors outside the Turnberry deal relative to EU rivals
• Nikkei Asia reports UK China policy under Burnham is expected to follow Washington's lead

Bias & framing notes

The Guardian's coverage focuses heavily on the union and industry perspective — Unite's opposition to Lockheed Martin and the economic risks of tariffs — without including any response from Lockheed Martin, the US government, or the UK Ministry of Defence. Nikkei Asia's China policy angle is reported only as a headline with no substantive detail available, making it impossible to verify the claim. The rolling markets piece from The Guardian adds tariff context but is not directly about the satellite contract. No pro-Lockheed Martin or US-alignment argument is surfaced in any source.

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