BAE in race for airline defence deal

DEFENCE firm BAE Systems is in the running for a $100m (£60m) contract to convert military air defence systems for commercial aircraft, for America's Department of Homeland Security.

The Bush administration has earmarked money for a two-year programme to develop the system to defend commercial airliners against attacks from shoulder-held missiles.

The Department of Homeland Security said it planned to award preliminary contracts for six months to one or more companies in December. This initial award would be followed by an 18-month period to develop prototypes, said spokesman Brian Roehrkasse.

While officials say it could be years before any system is implemented, BAE, one of the leaders in the field, is confident it can deliver.

Depending on the number of planes being equipped, BAE spokeswoman Marriane Murphy believes its bid will come in at under $1m each per commercial aircraft. BAE's counter measure system is a lamp-based one, the Advanced Threat Infra Red CM ATIRCM, which jams an incoming missile with its own infrared beam.

The company has has delivered 14,000 different IRCM systems worldwide 'This is the next generation in electric warfare. We're committed to the protection of the airline industry,' said Murphy.

Other frontrunners for the contract are Northrop Grumman, Raytheon and Elta Systems, a division of Israel Aircraft Industries. While Northrop is talking down its chances, it has designed a missile defence system already in use by the US military.