Back in June we learned that the FAA is looking to upgrade their air traffic control system, and XM Satellite Radio has teamed up with Raytheon to bid on the deal. The Raytheon/XM bid is unique because it utilizes the XMWX weather service to provide real-time weather data as a added benefit for pilots.

The FAA estimates it will spend $15 billion to $22 billion by 2025 on the satellite technology alone, and another $14 billion to $20 billion in spending on new avionics, cockpit electronics linked to the satellite technology.

And the decision could come as early as next week.

If Raytheon/XM win the bid, it would be quite the coup considering that both Lockheed Martin (the nation's largest defense contractor) and ITT Corp are also bidding for the massive 30-year contract. But it may also open up the door for satellite radio to be a "standard feature" in commercial airlines, though XM hasn't explicitly said this.

XM is already providing satellite radio entertainment to jetBlue and AirTran, as well as to United Airlines (including United's amazing first-class "suites"). But if the FAA contract goes to Raytheon, theoretically it would be possible to receive XM in all airlines.

"In many cases, the pilots -- or their passengers -- could be listening to XM radio while they're using our weather systems," said Roderick MacKenzie, XM's vice president of advanced applications. "A single receiver can let the pilot keep tracking the weather and keep the passengers entertained."

Sounds like a winner to me.

[Boston.com]
Thanks skipp!