Led · Equity · May 2018

Aireon operates a space-based ADS-B surveillance system that delivers global, real-time air traffic data covering oceanic, polar, and remote regions. Its system augments existing ground-based surveillance and is available to aviation stakeholders worldwide. Aireon partners with ANSPs including NAV CANADA, AirNav Ireland, ENAV, NATS UK and NAVIAIR, and works with Iridium Communications. The company is expanding its data products and services portfolio and plans to invest in advanced data analytics and visualization tools. Aireon also intends to hire for sales, business development, and engineering roles to support growth. The company highlighted that it has been 11 years since its creation and described itself as a critical part of aviation infrastructure. Aireon’s core product is a network of Harris-built ADS-B sensors hosted as payloads on the Iridium Next satellite constellation, enabling global, space-based aircraft surveillance beyond land-based radar. The company has 50 hosted payloads in orbit today and five more scheduled to launch on May 22; the full Aireon constellation will mirror Iridium Next with 66 active spacecraft, nine in‑orbit spares and six ground spares. Aireon plans to begin service later this year and will run trials in 2019 for transatlantic flights between North America and Europe with Nav Canada and NATS. The firm is under contract with its payload manufacturer to provide system updates to meet unique FAA requirements and hopes the FAA will connect to its network. Financially, Aireon has raised $351 million to date and recently received a $69 million investment from NATS that will enable it to begin making hosting payments to Iridium. Aireon currently owes Iridium $200 million in hosting fees and says it will pay those down over several years via investment, additional capital raises or operating cash flows. Aireon is a joint venture between Iridium Communications, NAV CANADA, ENAV, the Irish Aviation Authority (IAA) and Naviair, headquartered in McLean, VA. It is building a space-based, near‑real‑time, pole‑to‑pole aircraft surveillance service by hosting ADS‑B receiver payloads on the Iridium NEXT constellation. The system is designed to provide continuous coverage over oceanic, polar and remote regions and to improve efficiency, safety and reduce emissions for airlines and ANSPs. Iridium NEXT's first launch was scheduled for 2015 with constellation completion in 2017 and Aireon expected to deliver service beginning in 2018. Financially, Aireon is funding deployment through committed investments from its ANSP partners and Iridium, using preferred membership interests that are slated for conversion into common equity. NAV CANADA, ENAV, IAA and Naviair have made staged commitments to meet the capital requirements to deploy the Aireon system. Aireon LLC develops the world's first space-based global air traffic surveillance system and is headquartered in McLean, Virginia. Its core product will host ADS-B receiver payloads on Iridium NEXT satellites to provide near-real-time aircraft tracking over oceanic, polar and remote regions. The system aims to extend coverage beyond current land-based surveillance (estimated to cover less than 10% of the world) and to improve efficiency, safety, reduce GHG emissions and cut costs for airlines and ANSPs. Aireon closed a first tranche equity investment of $50 million from ENAV, the Irish Aviation Authority (IAA) and Naviair, who also signed long-term data services agreements to become customers and partners in deployment and marketing. Those three new investors will contribute a total of $120 million between 2014 and 2017 for equity, which combined with a $150 million investment from NAV CANADA is expected to meet capital requirements to build and launch the Aireon system. The company is a joint venture between Iridium Communications, NAV CANADA, ENAV, IAA and Naviair, and the new investors will add two representatives to Aireon's Board of Directors. Aireon develops the world's first satellite-based global air traffic surveillance system that tracks aircraft in near-real time, including over oceanic, polar and remote regions. Its Automatic Dependent Surveillance–Broadcast (ADS-B) receiver payloads are hosted on Iridium NEXT satellites, with the first launch scheduled for early 2015. Aireon is a joint venture formed by Iridium Communications and NAV CANADA and is headquartered in McLean, Virginia. The company has attracted $120 million in new equity commitments from ANSPs ENAV, the Irish Aviation Authority (IAA), and Naviair, bringing total committed capital to $270 million. Investments will be issued as preferred interests in tranches between 2014 and 2017, and Aireon expects to redeem a portion of Iridium's stake for $120 million around 2018. Aireon has contractual obligations to pay Iridium $200 million in hosting fees for integration and launch and nearly $300 million in data service fees through 2030, and Iridium expects Aireon to be accommodated on future constellations to enable continuity beyond 2030.