Thu, Nov 13, 2003

DHS Eyes Missile Defense For Airlines

But It'll Take More Than Two Years To Get 'Em On Board

By this time next month, we should have some idea of who the government will tap to build an anti-missile system for the seven-thousand aircraft commercial US fleet. But it will be years before we see any fruit from this labor.

The Department of Homeland Security says it will award preliminary contracts to one or more of the following:

Northrop Grumman
Raytheon and Elta Systems Ltd., a unit of state-controlled Israel Aircraft Industries
Alliant Techsystems
and the U.S. unit of Britain's BAE Systems

The winner(s) will work on adapting existing anti-missile defense systems now used on military aircraft for civilian use. After that, the government will give contractors 18 months to develop prototypes. Over the next two years, Uncle Sam will spend $100 million on these efforts.

That kind of money -- $100 million -- doesn't sound like much at the outset. But consider it an investment. Elta says it's already equipping two Israeli jetliners with its proprietary system at a cost of more than $1 million per aircraft. The carriers themselves will foot the bill beyond the first two installations. Bring the concept to America and do the math: $1 million each for 7,000 aircraft.

Yikes. That's a lot of dough.

It's even more if you consider that military-style missile defense system have to be replaced about once every 100 flight hours. That means more mechanics and other associated costs -- you're talking upwards of $15 billion a year, according to one estimate. Think about saddling the commercial aviation industry -- already struggling in the wake of September 11th -- with that kind of cost. It might be a good idea to start investing in Amtrak about now...

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DHS Eyes Missile Defense For Airlines

But It'll Take More Than Two Years To Get 'Em On Board

Yikes. That's a lot of dough.

FMI: www.dhs.gov

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