President Trump announced that Raytheon Technologies (RTX, Financial) and IBM are potential candidates for contracts to modernize the U.S. air traffic control system. He emphasized the outdated nature of current equipment and the need for a new system. IBM declined to comment, and Raytheon did not respond immediately.
Following a tragic collision near Washington Reagan National Airport involving a U.S. Army helicopter and an American Airlines jet, which resulted in 67 fatalities, there has been increased pressure to upgrade the national air traffic control system. The House Transportation and Infrastructure Committee is reviewing a proposal to allocate $12.5 billion by 2029 for replacing aging facilities, including control towers, radar systems, and telecommunications infrastructure, along with $1 billion for hiring air traffic controllers.
Transportation Secretary Sean Duffy plans to request significant funding from Congress for the FAA's long-term infrastructure modernization and staffing. He previously criticized Verizon for slow progress on a $2.4 billion contract with the FAA. Meanwhile, Starlink, owned by Elon Musk, denied intentions to take over Verizon's contract. The Government Accountability Office urges urgent action, as one-third of FAA systems are outdated, with some facilities over 50 years old, contributing to frequent delays.
