Britain’s BAE Systems won a $29M contract from the Department of Homeland Security (DHS) to install its JETEYE Counter-Man-Portable Air Defense System (MANPADS) aboard three 767-200 passenger aircraft operated by American Airlines [AMR] beginning this spring to test the suitability of the system for routine daily flight operations. The JETEYE systems will log 7,000 flight hours through the end of 2008. The system will be used on aircraft flying between New York and Los Angeles and possibly San Francisco. Winning the opportunity to test JETEYE on commercial passenger flights is important because it represents the “acid test of suitability” for the system for everyday use, Burt Keirstead, director of commercial aircraft programs for BAE, tells TR2. BAE beat Northrop Grumman [NOC], which has been testing its Guardian Counter-MANPADS system for DHS, for the new contract. The testing will be watched closely to see how it impacts airline costs and operations. Once the testing ends, Congress or the White House will likely determine whether commercial wide-body aircraft operating in the U.S. must be equipped with Counter-MANPADS.