Adacel Technologies Limited (ASX: ADA) is pleased to announce an increase to its existing engineering support services agreement with Leidos under the Federal Aviation Administration’s (FAA) Advanced Technologies and Oceanic Procedures (ATOP) Program. The increased services are expected to continue into the 2020 financial year.
This expansion of engineering support services under the ATOP Program represents an increase of approximately 20%, on an annualised basis, compared to 2017, and applies to both time and materials.
Adacel Chief Executive Officer, Gary Pearson, said “We are excited to expand our engineering support services under the ATOP Program and, in doing so, continue to grow our long term relationship with Leidos and the FAA. The expansion of services is consistent with the Company’s strategic pursuit of growth opportunities in its Services segment”.
The ATOP Program is Adacel’s largest and longest contract dating back to 2000 with annual service revenues in 2017 of approximately A$12.0M. The state of the art satellite based air traffic management system provides a fully modernised oceanic air traffic control automation that allows airlines to take advantage of investments made in cockpit digital communications. With ATOP, the FAA significantly reduces the intensive manual processes that currently limit the ability of controllers to safely handle airline requests for more efficient tracks or altitudes over long distance oceanic routes. It allows the FAA to meet international commitments of reducing aircraft separation standards thereby dramatically increasing capacity and efficiency.
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