[SatNews] Aireon LLC has signed a 17-year, $42 million agreement with ITT Exelis (NYSE:XLS) to provide the Automatic Dependent Surveillance-Broadcast (ADS-B) data processing and distribution component of the Aireon system. This contract further extends the ongoing relationship with Exelis, who also provides systems engineering services for Aireon.

Aireon, a joint venture between Iridium Communications Inc. (Nasdaq:IRDM) and NAV CANADA, will take advantage of the hosted payload space on Iridium NEXT, Iridium's second-generation satellite constellation. Leveraging the unique Low Earth Orbit (LEO) architecture of the Iridium(R) constellation, Aireon will extend ADS-B coverage and benefits to every flight path across the planet. Under the terms of the contract, Exelis will design and build the processing and distribution platform, a critical component of the Aireon system, and operate and maintain the system for 15 years. The Exelis platform will receive ADS-B data from ADS-B receiver payloads on Iridium NEXT satellites, validate and process the data and send it to Air Navigation Service Providers (ANSPs) for use in air traffic control services around the world, significantly improving operational efficiency, flight monitoring and reductions in fuel costs for airlines.

The data processing and distribution platform is being developed based on the deep expertise and best practices Exelis has gained deploying and operating the Federal Aviation Administration's (FAA) ground-based ADS-B system. Exelis has been working with Aireon and NAV CANADA, the world's second-largest ANSP and one of Aireon's joint venture partners, to define the technical and operating specifications of the Aireon system.

Expected to be fully operational in 2017, Aireon will provide more efficient, more environmentally friendly, and safer air travel. This first ever global air traffic monitoring service will enable a host of benefits to the world's airlines. It is anticipated to enable improvements to air traffic operations that will generate billions of dollars in fuel savings for air carriers over the life of the system.