Aireon aims to provide air navigation service providers (ANSPs) around the world with satellite-based surveillance capability and to deliver it via Automatic Dependent Surveillance-Broadcast (ADS-B) receivers, built as an additional payload on the Iridium NEXT constellation scheduled to be launched in the 2015-2017 period.

The new capability aims to deliver consumer fuel savings, an estimated $100 million per year, and avoided greenhouse gas emissions, estimated 263,000 metric tons of CO2 equivalents per year, for the world’s airlines due to the ability to use more optimal altitudes and routes because of expanded airspace capacity previously limited to less efficient procedural separation.

Under the agreement, Nav Canada will purchase Series A preferred membership interests representing up to 51 percent of the diluted equity of Aireon, totaling up to $150 million, and also intends to participate as a customer and utilize Aireon in its North Atlantic airspace operations. Once Aireon’s data service is established, other ANSPs will be able to subscribe to the service for their own flight information regions.

"ADS-B is a proven technology with proven benefits. The level of future savings to airlines and aircraft operators will quickly recoup our planned investment thus providing this project with a strong business case based on customer and environmental benefits," Nav Canada President and CEO John Crichton said in a statement.