The U.S. Federal Aviation Administration‘s (FAA) initiative to upgrade its air traffic control system and communications network over the next few years has given the satellite civil space sector a considerable opportunity to improve its market revenues. Satellite manufacturers, service providers and operators have enjoyed a slew of FAA awards since the beginning of 2011, with contracts and options potential totaling more than $1 billion in new revenue.
    Earlier this month, Raytheon won a $177 million contract modification with the FAA to continue deployment of the Standard Terminal Automation Replacement System (STARS) under the administration’s terminal automation modernization and replacement program.
    STARS, a joint procurement for the FAA and the U.S. Department of Defense, aims to design a reliable air traffic automation system to replace satellite capacity-constrained terminals at air traffic control facilities within the U.S. National Airspace System. Raytheon has already deployed 100 STARS systems under the air traffic modernization program.
    Raytheon will produce and deploy 11 systems for the FAA’s largest terminal radar approach control facilities in the United States, including: Northern California, Southern California, Dallas-Fort Worth, Atlanta, New York, Potomac, St. Louis, Denver, Minneapolis-St. Paul, Chicago and Louisville.
    In February, JetBlue Airways, which has its hand in the satellite commercial in-flight connectivity market, signed an agreement with the FAA to equip as many as 35 Airbus A320 planes with satellite-based technology to communicate with air traffic controllers.
    The FAA agreed to pay $4.2 million for the hardware and software necessary to equip JetBlue planes, officials said. The airline will pay to install and maintain the equipment as well as train flight crews and dispatchers how to use it. JetBlue will begin using satellite-based technology with air traffic control systems beginning in 2012.
    The FAA is in the midst of a widespread initiative to replace the U.S. air traffic control system — a project that is expected to take more than a decade to complete and cost up to $22 billion for the FAA and $20 billion for the airline industry.
    JetBlue contracted ViaSat in September 2010 to provide Ka-band antenna components and SurfBeam 2 modems for installation on the airline’s Embraer E190 and Airbus A320 aircraft types along with two-way transmission bandwidth services using the WildBlue-1 and ViaSat-1 satellites. JetBlue subsidiary LiveTV will manage the integration of ViaSat broadband, Wi-Fi enabled services and related components onboard the aircraft.
    Operators also are looking at FAA business to maximize revenues on new satellite payloads. Raymond James Analyst Chris Quilty assessed Iridium‘s long-term opportunities with the FAA as a healthy strategy to boost its position after it launches its Iridium Next constellation in 2015.
    To support its hosted payload business, Iridium is in discussions to place next-generation air traffic transceivers (ADS-B) on every Iridium satellite. If successful, Quilty believes the effort would provide significant upfront cash and hosting fees for the operators, as well as downstream revenues from selling data to the FAA.
    "We estimate that the FAA opportunity, alone, could generate tens of millions of dollars annually," Quilty said.
   The FAA also is looking at satellite for research and development partnerships. The agency recently awarded a 10-year indefinite quantity/indefinite delivery contract to Harris Corp. as part of a Boeing-led team to provide a comprehensive mission analysis and systems engineering service solution.
    Three teams were selected by the FAA to participate in the contract, which has an approximate value to all participants of $7 billion — the largest award in the FAA’s history. The initial term of the contract is for five years, with options to extend the contract for 36- and 24-month increments.
    The Systems Engineering 2020 contract consists of up to six separate contracts for research-and-development and systems engineering services designed to support a wide-ranging transformation of the entire U.S. air transport system to meet future demands and avoid gridlock in the sky and at airports.
   Harris’ contract history with the FAA includes work on the satellite-based Alaskan National Airspace System’s inter-facility communications system.
   The FAA’s upgrade to its weather monitoring system also has seen partnerships with satellite technology developers. In March, the FAA certified Innovative Solutions and Support’s (IS&S) Class 3 electronic charts and XM satellite weather upgrade for the Avio EA500 very-light jet cockpit system. This upgrade aims to provide satellite weather information on a moving map. The system also provides charts for approaching aircraft on points along or off-route for ease of selection and quick viewing of nearby airports, with multiple graphic viewing options, including the ability to zoom, pan and scroll view high-resolution imagery.
    IS&S also offers Class 3 satellite weather functions in the Cessna Citation, Dassault Falcon 2000, Pilatus PC-12, and all Vantage Cockpit/IP systems.
   Satellite’s mobility and its recent focus on cost reduction will be the key to its longevity as a platform and its viability with the FAA for future business, according to International Datacasting Corp. (IDC) CTO and Vice President Gary Carter. “While we could lament about how satellite lags behind terrestrial speeds, the satellite platform is here to stay. I think it’s an extremely exciting time for satellite as Ka-band is finally seeing a wide-scale launch after being around for a while. There is an insatiable demand for IP services. Frankly, everything is going to turn to IP. We have to defend our turf and offer new services. One of those services I’m interested in is the next-generation air traffic control. It’s a great example of satellite evolving the communications infrastructure.”