), a leader in the public safety and professional communication
market, has received an order to supply 81 Automatic Dependant
Surveillance-Broadcast (ADS-B) receiver payloads to Aireon LLC - a
joint venture between satellite operator
) and air traffic management (ATM) provider NAV Canada.
The payloads, which will be placed on Iridium's Iridium NEXT
satellite constellation, is expected to transform ATM from the
current ground based radar system to a global satellite based
aircraft tracking system. From Harris' viewpoint, this engagement
with Aireon will help the Melbourne, Florida-based company offer
innovative products to air navigation service providers (ANSP) and
thus open up new opportunities for its satellite communication
As a part of the deal, Harris' ADS-B will perform the
air-traffic surveillance functions from the Iridium NEXT satellite
constellation, which includes 66 low Earth-orbiting satellites, six
on-orbit spares and nine ground spares. After receiving positional
information from airplanes, the payload will transfer it to the
Aireon's ground based tower, which in turn will pass on the
messages to the ANSP's in real quick time to determine the exact
locations of aircrafts.
Additionally, by sharing Iridium's on-orbit ground
infrastructure, the ADS-B payloads will reduce the expense of
building and launching separate satellites by public and private
Airplane accidents have increased substantially in the last few
years, many of which occurred due to lack of efficient
aircraft surveillance opportunities, particularly in remote areas.
In this context, we see the Harris deal as an effort by ANSP's like
the U.S. Federal Aviation Administration (FAA) and NAV Canada to
modernize the ATM by equipping modern airplanes with this ADS-B
This new technology will help air traffic controllers to quickly
pinpoint an aircraft's position while allowing the airplane to take
the most efficient route between two separate locations. However,
the only downside to this technology is that it cannot monitor
aircrafts flying over oceans or other remote areas where placing an
ADS-tower is very difficult.
The companies have also entered into a strategic agreement,
whereby they will jointly pursue other business opportunities in
the advanced communication segment, which will also help Harris
Corp. to benefit from Iridium's leading position in the payload
We are maintaining our long-term Neutral recommendation on
Harris Corporation. Currently, Harris Corporation has a Zacks #3
Rank, implying a short-term Hold rating on the stock.
HARRIS CORP (HRS): Free Stock Analysis Report
IRIDIUM COMMUN (IRDM): Free Stock Analysis
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