Nascent ATM market, ITT in control

Air traffic worldwide is expected to grow at 4.7 per cent and 4.9 per cent for 2011 and 2012, based on the global economic growth of over four per cent for the next three years. In the long term massive investments in aviation infrastructure are needed. Globally businesses will be increasingly driven by the need to have safe, secure and efficient systems. ITT Corporation has been in the forefront of providing technology products/solutions that provide a competitive edge. In the realm of air traffic management, which is part of ITT’s Defense and Information Solutions business, the forays have been noteworthy and ITT is looking at a huge presence in India, a market which is impossible for any global company to ignore. In an interview with SP Guide Publications, the Vice President of Next Generation Transportation Systems, John Kefaliotis outlines the developments in air traffic management systems and the plans for India.

SP’s Show News: The focus is on India and most global companies are looking at India attracted by the huge market, is it so for ITT too?

John Kefaliotis (Kefaliotis): It is so. ITT has made substantial commitments in India. We have got manufacturing facilities there. We are very much interested in participating in the growing ATM market.

SP’s: What kind of ATM market exists and how much of business are you expecting from India? And what challenges do you foresee in such a vast market?

Kefaliotis: It is a new market for us and we have to create and develop the market. I am speaking from my perspective on the India market. India’s aviation market has high growth potential. It has outlined modernization plans in creating ATM infrastructure and our approach to developing that market is consistent with the approach we take in other market places. We make efforts to understand the customers; understand the policies and priorities of the country; the expansion and modernization plans; and we identify programmes that we can effectively participate in.

In our business there is a momentum for modernization globally of ATM infrastructure. The momentum is being driven by programmes for instance in the US by the Federal Aviation Administration (FAA) which is keen on developing and deploying its Next Generation Air Transportation System initiative and in Europe it is the SESAR (Single European Sky ATM Research) programme. We are developing and implementing new technologies that will make up and modernize the air traffic control systems...such as Automatic Dependent Surveillance-Broadcast (ADS-B) technology, and we hope to play a part in upcoming programs such as data communications. There is an operational concept and we have a range of technologies that support the operational concept.

Indian aviation officials are aware of these global programs and are supportive of them. India has announced major plans of modernizing air traffic control infrastructure. It is happening globally and it’s happening in India. In the US, we are the prime contractor who is deploying the ADS-B programme and we hope to be able to be a participant in India as well when India moves into that technology.

SP’s: In what time-frame is it likely to happen in India? What has been ITT’s proposal to Indian authorities?

Kefaliotis: I cannot speak for the Airports Authority of India. Nevertheless, I see ATM infrastructure in place over the next five years. ITT opened an office in New Delhi last year - ITT Defence International - in addition to the ITT India subsidiary in Vadodara. We will approach the Indian aviation authorities through these entities and our offices have briefed the authorities about the various programmes.

SP’s: What is the global ranking of ITT in the ATM discipline? What is the broad strategy to move up the ranking?

Kefaliotis: In the US, we are ranked third in sales. Globally, larger players are Thales and Selex...

However, we are making substantial headway. ITT has been a major provider of satellite based-GPS equipment. The benefits of GPS are pretty well understood worldwide. Air traffic management is now moving to satellite-based systems. The principal technologies that one would associate with Nextgen include Required Navigation Performance (RNP); ADS-B and data communications.

SP’s: What is the progress on the implementation of the ADS-B system in the US?

Kefaliotis: In the US, it is already operational. We have deployed 300 radio stations which are delivering data broadcasts to aircraft. We have also established three major processing stations which distribute data and we have in place service equipment in 40 air traffic control facilities. The network is operational as per FAA requirements and the nationwide deployment will be complete by 2013. ITT’s performance is outstanding, fully meeting all contract requirements on schedule and within budget.

SP’s: What are the plans for implementation of ADS-B outside the US?

Kefaliotis: Australians have deployed ADS-B in the interior part of the country and globally there have been ADS-B deployments in the Hudson Bay, Canada and Newfoundland where radar based installations never existed. There are also numerous smaller installations in South East Asia and demonstration implementations in Europe.

SP’s: ITT has announced its plans for strategic realignment in the defence segment. Would this exercise impact in any way allied sectors of the company such as ATM?

Kefaliotis: No. Most of the change that is planned to occur will be at the company’s corporate headquarters level. ITT’s Defence and Information Solutions business will remain intact and its ATM business is contained under that. We see no change in ATM business due to the restructuring.

SP’s: Who are ITT’s major rivals in the field of ATM and how does the company propose to remain globally competitive in this specialized area?

Kefaliotis: In the US, the competition is from Lockheed Martin, Raytheon and others, and in the world market it is Thales and others. We compete by being fully attendant to the requirements of the customers, and by designing our products and strategies to meet customer needs. We continuously work hard to deliver exactly what we promised in the contract.

SP’s: What is unique to your company vis-a-viz ATM ?

Kefaliotis: We are the only company to deploy and operate ADS-B on one of the largest ADS-B networks in the world. It is a system which has run through intense testing and safety certification by FAA. It has been verified by the FAA to be operational and its performance requirements are exceptional and safe and secure from an information security standpoint.

We go to the market with that technology, having developed integrated systems which can meet large scale needs. In India, we are hopeful of making breakthrough. Our business experience tells that we need to apply effort and our progress will be in a slow and steady manner. Our strategy is for the long haul...It’s a huge opportunity here and ITT which is a high quality company is completely focused on delivering outstanding products and services. We look forward to participating in the Indian market.