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FAA Awards Raytheon $350M for Air Traffic Control Updates; Michael Espinola Comments

airport towerRaytheon (NYSE: RTN) has received a $350 million contract modification with the Federal Aviation Administration to extend the company’s air traffic control center modernization work under the FAA’s Terminal Automation Modernization and Replacement program to September 2017.

The company will implement the Standard Terminal Automation System at airports as part of the FAA’s efforts to transition ATC systems into the NextGen terminal automation platform, Raytheon said Tuesday.

“STARS is now operating at 150 FAA and DoD terminal air traffic control facilities and the performance of the system has been exceptional, ” said Michael Espinola, managing director of Raytheon’s air traffic systems.

The terminal automation system is built to function as a single operational baseline for terminals.

The FAA says 90 percent of terminal air space controlled by the FAA will be covered under NextGen once work under this contract completes.

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