The Australian Department of Defence and Airservices Australia have entered an agreement with Thales to implement the A$1.2bn ($942.67m) OneSKY air traffic management system.

Thales Australia CEO Chris Jenkins said the OneSKY system will enhance flight coordination and safety, while it will increase the use of airspace, optimise air traffic flow, and improve runway approach.

Australian Defence Minister Marise Payne said: “This project will replace the ageing military air traffic management systems and is essential to ensuring our Australian Defence Force (ADF) can continue to operate safely in Australia’s airspace.”

With the implementation of the advanced OneSKY programme, which seeks to integrate the nation’s civil and military air traffic management systems, Australia would have the most secure and resilient air traffic network across the globe, according to Payne.

“The OneSKY project will support 450 specialist high-tech jobs in Melbourne.”

Australian Defence Industry Minister Christopher Pyne said: “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% of the acquisition cost and 95% of the on-going annual support costs will be to Australian companies.”

The development and delivery of OneSKY programme is also expected to provide approximately 200 additional job opportunities in the Australian supply chain.

The system will be able to reduce travel times and delays, in addition to fuel costs and greenhouse emissions. It will also make travelling safer and faster.