Jun. 25, 2009 (United Press International) -- Israel's Transport Ministry has contracted Elbit Systems (NASDAQ:ESLT) to outfit all of Israel's commercial planes with a defense system against shoulder fired missiles.

A statement released by Elbit Systems Thursday said the $76 million contract for the Sky Shield defense system, requires the company to install the C-Music system (commercial multi-spectral infra-red countermeasure) in all of Israel's commercial aircraft.

Transport Minister Yisrael Katz told Israel Radio all of Israel's commercial planes will be fitted with the system within three years.

"Israel will be the first country in the world to install a defense system in all its commercial planes," he said.

The company described the system as a "direct infra-red countermeasure technology for military aircraft and helicopters that disrupts missiles fired at aircraft and causes them to veer off course by transmitting a laser beam."

Describing the system as a breakthrough in technology, Joseph Ackerman president and chief executive officer of Elbit Systems said the company takes great pride that one of its systems was chosen by the ministry.

"This selection represents a major accomplishment for Elbit Systems and attests to the quality, innovative technology and advanced capabilities we offer our customers … I believe many customers worldwide will decide to install these systems aboard their commercial aircraft fleets," Ackerman said in a statement.