NEWTOWN, Conn. -- Raytheon was recently awarded a $30 million ceiling increase modification to a previously awarded contract for T-38A/B, C-17, C-5, and A-10 Automatic Surveillance - Broadcast (ADS-B Out) upgrades.
As part of an FAA initiative to fund avionics improvements to the United States civil air fleet, the Automatic Dependent Surveillance-Broadcast (ADS-B) system provides flight crews with high-precision, real-time representations of air traffic data, which are received from a satellite network. The system also allows access to weather services, terrain maps, and other navigational tools. The heightened level of awareness allows more aircraft to operate in the same airspace without additional risk to safety. The FAA hopes the system will allow aircraft to maintain safe distances from one another with less assistance from air traffic controllers.
ADS-B Out is already mandated in some regional airspace and is mandated per DO-260B for retrofit in Europe and the U.S. by 2020.
Many operators will wait until the last minute to upgrade their fleets. As the clock ticks closer to 2020, upgrade demand will surge, as will prices for the upgrade.
Just in February 2018, Rockwell Collins was awarded a contract for ADS-B Out upgrades of 32 military aircraft models. The FY19 budget includes a number of line items dedicated to ADS-B Out upgrades. Many of these programs are being expedited and provided with larger budgets, in order to meet the 2020 deadline, or at the very least prevent upgrades from extending too far beyond the deadline.
While the civilian aircraft market is highly profitable for ADS-B Out upgrade providers, the military market is also quite significant. A certain number of military aircraft will not meet the deadline, thus pushing upgrade programs past 2020, and extending the timeline of this upgrade market.
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