A modernized military air traffic management system for use at more than 60 locations is to be developed and deployed by AQUILA for Britain's Ministry of Defense.

The contract, which will merge 70 current MOD contracts into one, is worth about $2.4 billion. About $645 million of that amount is for procuring advanced surveillance radars, navigation aids, radios and other equipment.

Savings over a 22-year period as a result of the ATM program, named Marshall, could be as much as about $1.6 billion, according to Minister for Defense Equipment, Support and Technology Philip Dunne.

"Enabling our military aircraft to continue to operate as safely and efficiently as possible is absolutely vital," he said in announcing the contract. "This significant investment will ensure we have an advanced and secure service at MOD sites in the UK and abroad, and will support deployed UK and coalition forces worldwide.

"This deal also represents excellent value for money for the taxpayer, securing up to 1 billion Pounds of savings when compared to the myriad of contracts it replaces."

AQUILA is a joint venture of Thales UK and NATS, Britain's leading air traffic control services company. Under the MOD deal AQUILA will supply, maintain and install new and updated ATM equipment and train both maintainers and operators.

The sites that will use the modernized system are located in Britain as well as British military sites in Cyprus, Gibraltar, the Falkland Islands and Ascension Island.