The Galileo Joint Undertaking (GJU) organisation has failed to choose between the two bidding consortia for the concession contract to operate Europe's global navigation satellite system, Galileo.

Despite missing its decision deadline of 1 March, the GJU insists that the postponement does not affect the timetable for deploying Galileo.

Later this month or in early April negotiations will begin with both bidding consortia – iNavSat and Eurely – focusing on insurance policies, financing and project costs.

The GJU expects to select the winning bidder within three months and finalise a contract by year end.

"Both consortia substantially improved their original bids... that is why it proved valuable to extend the [decision] phase…within the next three months it will become clear with whom the GJU will continue the final negotiations," says Rainer Grohe, GJU executive director.

The total cost to the public-private partnership of developing and deploying Galileo is estimated by the GJU to be €3.4 billion ($4.3 billion) with a predicted 1.7 billion users by 2010. iNavSat and Eurely are respectively led by Inmarsat, Thales and EADS Space and Alcatel, Finmeccanica, Spanish air traffic management body Aena and satellite operator Hispasat.

Source: Flight International