The Galileo fleet of 16 satellites could cost 40% more if the European Space Agency (ESA) embarks on a dual procurement plan, according to Astrium satellites chief executive Evert Dudok, speaking at the Paris Air Show.

The dual procurement plan would mean that EADS Astrium and OHB System will get contract for eight satellites each instead of the total €840m ($1.16bn) contact. The cost increase would occur due to the decrease in volume for each manufacturer.

The cost speculation comes in response to two long-lead items contract two EADS Astrium and OHB System worth €6m and €10m (€8.3m and €13.9m) respectively.

Galileo is a European global navigation satellite system providing highly accurate, civil global positioning service. It is be inter-operable with GPS and GLONASS, the two other global satellite navigation systems.

The performance in the present deal will determine who wins the contract for 12 more Galileo units.