Iridium Buys Aireon Stake for Aviation Safety

Iridium Communications is significantly expanding its aviation services by acquiring the remaining 61% of Aireon for approximately $367 million. This acquisition will give Iridium full control over the aircraft-tracking venture, which has been operational since 2019.

Aireon utilizes Iridium's constellation of 66 satellites to track aircraft via Automatic Dependent Surveillance-Broadcast (ADS-B) signals. This service provides air traffic controllers with enhanced flight information, supporting AI-driven safety and efficiency tools. Currently, Aireon tracks around 13,000 aircraft and approximately 190,000 flights daily.

As part of the deal, key air navigation service providers like NAV CANADA and NATS are extending their data service agreements through 2035. Iridium anticipates further ANSP collaborations, including potential agreements with the U.S. Federal Aviation Administration. The company also plans to explore next-generation services like space-based VHF communications and advanced positioning, navigation, and timing (PNT) services.

The acquisition is expected to close in early July, pending regulatory approvals. Iridium projects that Aireon will add at least $100 million in annualized service revenue and $30 million in annualized operational EBITDA. Iridium plans to fund the transaction through existing financial resources and future cash flow.