Air traffic control provider Airservices Australia, which is managing the project in partnership with the Department of Defence and Thales, says it will allow the country to better handle forecast traffic growth.
After coming under scrutiny by the Australian National Audit Office (ANAO) over its long-running procurement process of the OneSKY system, Airservices has picked Thales to carry out the $1.2 billion air traffic control system overhaul.
The new technology will track all commercial and military flights in the 11 per cent of global airspace managed by Australia.
The centrepiece of the $1.2bn programme - created to enhance safety while reducing flight times and delays for the travelling public - will be a system known as the Civil Military Air Traffic Control System (CMATS).
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Airservices Australia and the Australian Department of Defence have signed contracts signifying a major milestone in unifying the nation's civil and military air traffic management (ATM) systems.
"The OneSKY project will support 450 specialist high-tech jobs in Melbourne, building Australian skills in complex project management, systems engineering and software development".
"Around 75 per cent of the acquisition cost and 95 per cent of the ongoing annual support costs will be to Australian companies", he said.
The original completiton date of 2021 was put back to 2023 after lengthy negotiations with Thales and differences between Defence and Airservices. It will manage forecasted growth of air traffic movement in Australia, by as much as 60 per cent by 2030, minimising delays for the travelling public.
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"OneSKY is game-changing. It is transformative, not only for air traffic management in Australia, but world-wide there is nothing like it", Airservices chief executive Jason Harfield said Monday.
"This project will replace the ageing military air traffic management systems and is essential to ensuring our ADF can continue to operate safely in Australia's airspace", Minister Payne said.
Minister Payne said the project will now be removed from Defence's projects of concern list.
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