Europe launched a long-term programme on Friday to upgrade its increasingly stressed air traffic control system by signing initial contracts worth 1.9 billion euros ($2.7 billion).

The deals were signed by 16 firms, institutes or airports and the SESAR partnership between the European Commission and the Eurocontrol air traffic organisation, to seek to prevent congestion of the European sky.

The aim of the programme, worth 2.1 billion euros, is to unify Europe's often-fragmented air management system and increase by three times its ability to handle air traffic by 2020.

The scheme should also improve air safety by a factor of 10, the Commission said, and reduce air fuel consumption by 10 percent.