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Home / Business / Companies / Airlines

Joint venture flying high

30 Jun, 2000 03:24 AM3 mins to read

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By YOKE HAR LEE

Lockheed Martin ATM and Airways Corporation (New Zealand), jointly chasing a $200 million contract to upgrade the US Federal Aviation Authority's ocean traffic control system, are keen to tap similar contracts worldwide.

The Canadian technology supplier Adacel Technologies is also part of the consortium for the FAA bid.

The
parties see it as a winning formula, bringing together Lockheed's experience in systems integration and dealing with the FAA, Airways operational know-how on airspace traffic management and Adacel's intellectual property on the software.

Airways is one of the first airspace traffic management organisations to have a satellite-based oceanic control system up and running.

Satellite systems are deemed to be more efficient in controlling airspace against the present radar-manual mix.

Dr Dale Seastrom, vice-president for business development at Lockheed Martin ATM (Air Traffic Management), said the Lockheed-led consortium had the best product in the FAA bid.

The FAA is expected to call for submissions this month.

Other competitors eyeing the FAA contract include Air Services Australia, Nav Canada, Raytheon and Airsys ATM (France).

Jane Rudolph, vice-president of Lockheed's domestic programme, said the FAA had fallen in its capability on oceanic management systems.

"The FAA's premise has been rather than try and find something outside, it typically developed its own system.

"But now, they are turning to existing systems and leveraging that to quickly produce [working] capability."

The FAA contract is one of the most important in the industry as its Oakland centre controls a big track of northern and central Pacific airspace.

Coupled with Airways jurisdiction over the south-west Pacific and across the Tasman, the FAA would end up with the same technology platform as Airways, if it opts for Lockheed's bid.

Dr Seastrom said Lockheed was looking at other regions to supply state-of-the-art satellite traffic control systems.

"There are a couple of other opportunities. Hong Kong ... although there is timing uncertainty there ... is an opportunity we would be looking at."

Lockheed has been invited to help African nations develop the architecture for managing their airspace.

He said Africa would have the benefit of being able to leapfrog into a new technology based on satellites, compared with its present minimal infrastructure.

"Because of the uncontrolled nature, the saying about being in Africa is 'see and be seen.' We are working to provide satellite-based infrastructure."

In Britain, there was the possibility that delays in the airspace systems management upgrade being undertaken by another supplier might lead to authorities evaluating the project.

Dr Seastrom said Lockheed was providing third-generation systems for the British aviation authority's area control centre.

He said Lockheed was also supplying a companion system in Scotland.

South America, with its lack of infrastructure, was also seen as having potential for business.

"They have difficulty with funding," Dr Seastrom said.

"We are working to create financial engineering ... To provide upfront funding to help them modernise their air navigation systems and then recoup that by either using overflight fees or have airlines pay for use of that system."

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