Air Traffic Control Overhaul Heats Up as US Government Awards Contracts

Image: Air traffic controllers working in an airport control tower. (Photo Credit: Adobe Stock/Gorodenkoff)
Image: Air traffic controllers working in an airport control tower. (Photo Credit: Adobe Stock/Gorodenkoff)
Donald Wood
by Donald Wood
Last updated: 8:00 AM ET, Tue January 6, 2026

The United States Government took a major step forward Monday in its overhaul of the country’s aging air traffic control system by awarding two companies new contracts to supply new radar systems.

According to Reuters.com, the contracts awarded to RTX Corp and Spain's Indra Sistemas are part of a $12.5 billion plan Congress approved last year to overhaul the air traffic control system in America.

Transportation Secretary Sean Duffy did not reveal how much the contracts were worth, but Federal Aviation Administration (FAA) head Bryan Bedford revealed last month that the government pledged “$6 billion by year-end on air traffic control telecom infrastructure and radar surveillance systems.”

FAA officials acknowledged it would need about $20 billion to complete the full air traffic control system upgrade, which would aim to address issues such as airport congestion, technology failures, and high-profile safety incidents. 

“While our air travel system is the safest in the world, most of our radars date back to the 1980s,” Secretary Duffy told Reuters. “It's unacceptable.”

In total, RTX Corp and Indra Sistemas will be contracted to replace up to 612 radars by June 2028 with modern, commercially available surveillance radars. The deal also calls for installing surface radars at 44 airports, as well as 27,625 radios and 110 weather stations in Alaska.

In November, the FAA announced it had selected national security company Peraton to be the project manager for the overhaul of America’s air traffic control system.

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