The Boeing Company [NYSE: BA] this week began modifying the first of three U.S Air Force C-40B transport aircraft with a laser-based countermeasures system that defeats incoming infrared-seeking missiles.

The Large Aircraft Infrared Countermeasures system, supplied by Northrop Grumman [NYSE: NOC], protects large fixed-wing transports and small rotary-wing aircraft from infrared missile attacks by automatically detecting a missile launch, determining if it is a threat and activating a high-intensity countermeasures system to track and defeat the threat.

"Boeing designed the C-40B to transport our combatant commanders into the battlespace armed with the communication tools they need to make and execute timely decisions," said Tom Rice, C-40B program manager. "It's now our privilege to protect their safety with a next-generation asset that neutralizes a very real and emerging threat."

The first installation is scheduled for completion in late February 2008, with the second and third modified aircraft slated for delivery in August and December of next year.

The C-40B, a derivative of the Next-Generation 737-700 Boeing Business Jet, is designed to be an "office in the sky" for senior Military leaders, providing broadband data/Video transmit-and-receive capability as well as clear and secure voice and data communication. It enables combatant commanders to conduct business anywhere in the world using onboard Internet and local area network connections, improved telephones, satellites, television monitors and fax machi