SPDF0023

Written evidence submitted by Airbus Defence and Space

Many thanks for inviting me to give evidence to your committee inquiry into Space Defence, and thank you for your time at DSEI.

You asked me to write to you to provide greater detail on several points raised by members of the committee, including Mr Francois and Mr Drax.

I believe Q116 from Mr Francois referred to the 2021 Annual Report on the Government Major Projects Portfolio (GMPP) from the Infrastructure and Projects Authority (IPA). Airbus has operated Skynet 5 for the past 18 years. We have done so successfully, both from the point of view of the service user and the UK taxpayer. It is a national success story; indeed, US Special Forces rely on our sovereign Skynet system. The IPA report refers to Future Beyond Line Of Sight (FBLOS). This is a wider programme, which the MOD is currently deciding how to deliver over the coming decades. The MOD have yet to share their full plans with industry for this FBLOS programme. So far, the only aspect which Airbus is currently involved with is the development and delivery of the Skynet 6A satellite, the first of what we hope will be several Airbus satellites delivering BLOS capabilities to the armed forces over the coming decades, unleashing a step change in technological capability. 6A is programmed for launch in 2025. It is entirely on time and to cost, and we will start physical manufacture in the next few weeks.

We believe the Amber/Red rating Mr Francois referred to relates to the future development of the programme and the Enduring Capability programme. Airbus currently has no involvement in this, though as the UK’s national space prime and the operator of Skynet 5 today, we believe a partnership approach with MOD, Strategic Command and Space Command could help to accelerate this programme and drive efficiencies. Such an approach would help to deliver the Defence and Security Industrial Strategy and grow the world class tier 1 UK milsatcom manufacturing capability that delivered Skynet 5 so successfully. It is worth noting that, at the end of the PFI in 2022, the constellation will have many years of additional life, delivering substantial long term value and capability for MOD far beyond the original contract expectations.

In questions 126-7, Mr Drax asked about the manufacture of Skynet 6A, and about the supply chain. As I said in my oral evidence, this is the first satellite to be entirely designed, built and tested in the UK. The contract to build Skynet 6A (which has three times the capability of the existing satellites) provided a good business case for investment in major new testing facilities at RAL Space, Harwell.

The committee asked for further information on our supply chain, and the sort of work that SMEs are performing. There are 55 first tier suppliers working with us on Skynet 6A, and another 45 SMEs. Due to commercial sensitivities I cannot provide names of SMEs and link them to specific work packages, or provide specific valuations. But by way of example, and bearing in mind that the first cut of metal will only take place this month, different SMEs are currently contracted to:

● Provide a payload test system, worth in excess of £300,000;

● Support us with IT hardware and software, worth in excess of £400,000;

● Develop software worth more than £1,600,000;

● Provide antenna and satellite link emulators worth more than £250,000;

● Provide radiofrequency filters worth more than £180,000.

Airbus studies conclude that our space supply chain supports over 15,000 UK jobs in addition to the approx 3,500 we employ ourselves in this area. The downstream use of our products creates many more jobs. The total UK market is estimated to be £16 billion, of which £2 billion is manufacturing, highlighting the significant additional revenues and economic benefits driven by investment and spend in the FBLOS programme.

I remain at the disposal of the committee to provide any further information it may be interested in.

28th September 2021