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FAA Awards $875M AI-Powered Airspace Management Contract

Key Takeaways
  • The FAA awarded ASI a $875 million contract for an AI-enabled airspace-management system.
  • The system, called SMART, aims to reduce congestion and delays across US airspace.
  • SMART will use data on airline schedules, weather, and airport capacity to predict congestion.
  • ASI beat larger rivals Palantir and Thales for the contract.
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Strategic Implications

This award may signal the FAA's preference for innovative, AI-powered solutions in air traffic management. The selection of ASI, a smaller company, suggests that the FAA is open to working with non-traditional vendors, which could indicate a shift in procurement strategies. The implementation of SMART may also indicate a move towards more predictive air traffic flow management, which could have significant implications for airlines and the broader aviation industry.

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What Happened

Air Space Intelligence Beats Larger Rivals For Key Air Traffic Modernization Program

The Federal Aviation Administration (FAA) has awarded Air Space Intelligence (ASI) a 12-year, $875 million contract to build a new airspace-management system called SMART. The system is designed to reduce congestion and delays across US airspace by using data on airline schedules, weather, airport capacity, and other operating constraints to predict where congestion or conflicts are likely to develop. ASI, a smaller company, beat larger rivals Palantir and Thales for the contract, which is one of the FAA’s most important air traffic modernization programs. The award was reported by AeroTime.

Source | Originally Published: November 15, 2023

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JUMPSEAT
AEROSPACE NEWS
JUMPSEAT
AEROSPACE NEWS

FAA Awards $875M AI-Powered Airspace Management Contract

Sponsored by: Jumpseat Solutions
Key Takeaways
  • The FAA awarded ASI a $875 million contract for an AI-enabled airspace-management system.
  • The system, called SMART, aims to reduce congestion and delays across US airspace.
  • SMART will use data on airline schedules, weather, and airport capacity to predict congestion.
  • ASI beat larger rivals Palantir and Thales for the contract.
Sign in to view key takeaways Get full access to in-depth analysis and key takeaways.
Sign In
Silver membership required Upgrade to Silver to access Key Takeaways.
Upgrade
Strategic Implications

This award may signal the FAA's preference for innovative, AI-powered solutions in air traffic management. The selection of ASI, a smaller company, suggests that the FAA is open to working with non-traditional vendors, which could indicate a shift in procurement strategies. The implementation of SMART may also indicate a move towards more predictive air traffic flow management, which could have significant implications for airlines and the broader aviation industry.

Sign in to view strategic implications Get full access to strategic analysis and expert insights.
Sign In
Silver membership required Upgrade to Silver to access Strategic Implications.
Upgrade

What Happened

Air Space Intelligence Beats Larger Rivals For Key Air Traffic Modernization Program

The Federal Aviation Administration (FAA) has awarded Air Space Intelligence (ASI) a 12-year, $875 million contract to build a new airspace-management system called SMART. The system is designed to reduce congestion and delays across US airspace by using data on airline schedules, weather, airport capacity, and other operating constraints to predict where congestion or conflicts are likely to develop. ASI, a smaller company, beat larger rivals Palantir and Thales for the contract, which is one of the FAA’s most important air traffic modernization programs. The award was reported by AeroTime.

Source | Originally Published: November 15, 2023

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