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| Sextant Eyes 10% Annual Growth, Challenging Americans in Avionics Fresh from its acquisition by Thomson-CSF, European avionics and cabin electronics maker Sextant is looking to expand in surveillance, communications and in-flight entertainment markets-and give industry giants Honeywell and Rockwell Collins a run for their money. Aircraft electronics mostly operate as segregated systems today, according to Francois Lureau, chairman and CEO. Instead, "you need to think globally," he says, and provide full systems that integrate cockpit and cabin electronics in a systems approach. The Velizy, France-based company also plans strong expansion into the service end of the avionics and aircraft electronics systems business, possibly through new co-operative agreements with other companies, Lureau says. Product development priorities at Sextant include providing better in-flight entertainment systems for passengers, including audio- and video-on-demand. This includes integration with air-to-ground communications that can provide e-mail connectivity, according to Guy Baruchel, president and CEO of Sextant In-Flight Systems. Limited Internet connection also can be offered, using pre-loaded website files, he says. The next step is to offer real-time web "surfing" to passengers. Although this is not yet technically feasible, it could be possible when planned new satellite communications networks reach the operational stage. Sextant anticipates service inauguration of its LiveTV system on a Legend Airlines' DC-9, begining next week. Live24 will offer 24-channels of live television to the Dallas-based airline's passengers. Sextant has three customers for LiveTV, including start-up carrier JetBlue and Alaska Airlines. Other new products include a flight management system, in development with Smiths Industries, that offers easy-to-use, "what-if?" planning. It's extremely flexible and easy to upload to air traffic control and airline operational bases, according to flight operations advisor Captain Reda Benlekehal. The new FMS will help the cockpit crew "enormously" when making operational decisions, Lureau says, quickly paying for itself in fuel and in-flight time savings. Flight testing and fine-tuning also continues on an innovative ground collision avoidance system. This will offer airlines a competitive choice and break Honeywell's monopoly on the important safety tool, Lureau says, noting that Sextant's design also has a different approach that has a lot of appeal to pilots. Although about 75% of Sextant's business is commercial, the company plans to "vastly increase" its military business, Lureau notes. From 1998 to 1999 Sextant's military bookings and revenues each increased 25%. Lureau sees further pick-up in the armed forces market as world military forces cannot afford new aircraft platforms and instead are turning to avionics upgrades to increase aircraft capability, safety and efficiency. A good example is Sextant's Topdeck C-130 cockpit, which is designed to integrate easily with any military aircraft platform. A derivative of this, the Meghas cockpit, is popular in civil helicopters, Lureau says. Sextant also is delivering its new Topowl helmet-mounted sight to the South African Air Force and has sold 160 for use in French and German Eurocopter Tiger attack helicopters. The helmet has been selected for the trans-European HN-90 helicopter program as well. A different version, called Topsight, is being proposed for the French Air Force's Rafale fighter. All told, Lureau believes Sextant can reasonably achieve a stable 10% annual growth rate, without acquisitions, for the next several years. Airbus has a record backlog and much of its avionics are Sextant products, he says. Bombardier also is a big user of Sextant avionics on its hot-selling regional jets. By Paul Proctor
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