Aireon aims at Asia, LatAm as Iridium deploys satellites

By Alwyn Scott

NEW YORK (Reuters) - Aircraft-tracking provider Aireon LLC expects to expand its global footprint with deals in Asia and Latin America next year, as partner Iridium Communications (IRDM.O) deploys initial satellites in April, Aireon's chief executive said on Friday.

Aireon will begin operational testing of its satellite-based surveillance system next year and will cover all of the world's airspace in 2018, when Iridium's network of 66 low-orbit satellites is aloft, Don Thoma, chief executive of Aireon, said in an interview.

The company has agreements with authorities that govern 45 percent of the world's airspace now and is aiming to reach agreements with authorities in India, Singapore, New Zealand, Australia, Brazil and Peru next year, he added.

Iridium's decision last month to delay launch of its first two satellites to April 2016 will not affect Aireon's ability to turn its system on in 2018, Thoma said.

The delay was caused by a problem found during testing of equipment from Thales Alenia Space (TCFP.PA), Thoma said.

Iridium owns about 25 percent of Aireon. The companies are working closely with Thales, Orbital ATK Inc (OA.N) and SpaceX "to make sure the final constellation is still launched by 2018 and operational," Thoma said.

Aireon's system is based on the ADS-B transmission standard required on all commercial aircraft by 2020. The system supplies air traffic controllers with real-time data on aircraft anywhere on the planet, allowing them to route planes more efficiently.

Such routing could save airlines an estimated $100 million a year in fuel on North Atlantic routes, Thoma said.

Savings on just eight major global routes could reduce greenhouse gas emissions by 1.2 million metric tons, the equivalent of taking 300,000 to 500,000 cars off the road, he said.

Aireon's partners include NAV CANADA, ENAV Spa (IPO-ENAV.MI) of Italy, the Irish Aviation Authority, Denmark's Naviair and Iridium.

This week, Aireon said it had signed a deal with South Africa's air navigation provider, Air Traffic and Navigation Services, to use its system in 2018. The agreement covers about 10 percent of the world's airspace.

In October, it signed a similar deal with the Dutch Caribbean air navigation service provider covering a key region connecting Latin American, U.S and Caribbean airspace.

In the aftermath of the loss of Malaysian Airlines flight 370 in 2014, Aireon said it would provide free tracking to help authorities search for future missing planes.

(Reporting by Alwyn Scott; Editing by Bill Trott)