ITT Scores Surpise FAA Contract Win

ITT Corp. beat out teams led by Raytheon and Lockheed Martin in a surprising win of the first major contract to begin upgrading the nation's aging air-traffic-control system, the FAA announced. The victory puts ITT in a position to play a major part in the lucrative $20 billion upgrade, scheduled to roll out over the next 20 years. Lockheed and Raytheon are considered bigger players than ITT in the air-traffic-control sector, but the FAA, which announced its choice Thursday, said it preferred ITT's proposal because it posed "no technical risks." Once in place, the new system will allow planes to fly closer together, saving fuel and time. The initial contract budgets $207 million to install the new system in four areas by 2010. The areas will serve as a test before ground stations roll out nationwide by 2013. The technology, known as ADS-B (Automatic Dependent Surveillance-Broadcast), reduced small-plane accidents in Alaska by 40%. Its added capacity will enable air-traffic-control to keep up with a predicted surge in air travel in coming years.

Sources: Press release, Wall Street Journal, Reuters
Commentary: ITT Corporation Is Making the Most of Its Market
Stocks/ETFs to watch: ITT, RTN, LMT

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