The FAA has selected ITT Corp to build the first portion of a new satellite-based air traffic control system.

ITT beat competitors Lockheed Martin and Raytheon for the $1.8 billion project that could give the company a leg up in securing other contracts related to the air-travel system.

The proposed system, which the FAA said posed "no technical risks," uses GPS technology to replace the FAA's aging network of 50-year-old ground-based analog radar technology.

Lockheed was considered the favorite for bagging the deal, while Raytheon's proposal included the XM WX Weather service as part of the offering.

[Wall Street Journal]