GE Aviation, a division of General Electric Company (GE - Free Report) recently signed an agreement with The Boeing Company (BA - Free Report) to provide inertial navigation technology for its next-generation satellite communications systems. Inertial navigation is widely used for the guidance of aircraft, missiles and ships, and utilizes Global Positioning System (GPS) data to provide accurate location, pitch, and roll data for both stationary and moving vehicles.
Boeing's satellite communication systems utilize SATCOM, an antenna system that harnesses the wide bandwidth available, by linking to Ka-band satellites. Useful data is then transferred from air-borne flights to the ground network facilities. These communications antenna technologies were indigenously developed by Boeing to improve the capability of platforms to remain networked while being mobile.
The contract reinforces the long-term relationship between the two behemoths of the respective industries. At the same time, the contract is likely to augment the revenue of GE Aviation.
In the last reported quarter, GE Aviation recorded the highest year-over-year revenue growth of 11%. GE Aviation provides advanced technologies for superior aircraft performance and aims to take aviation to the next level in the long run.
General Electric is one of the most diversified technology and financial service corporations in the world, competing with industry big wigs such as Crane Co (CR - Free Report) . Its segments include Power & Water, Oil & Gas, Energy Management, Aviation, Healthcare, Transportation, Home & Business Solutions, and GE Capital. Evendale-based GE Aviation is a leading provider of jet, turboshaft and turboprop engines, and components and integrated systems for commercial, military, business and general aviation aircraft
General Electric currently has a Zacks Rank #3 (Hold). One of its competitors, Tyco International Ltd carries a Zacks Rank #2 (Buy)