GE Aerospace and Merlin’s Strategic Partnership: Pioneering Autonomous Aviation Technology for Military and Commercial Applications

The aviation industry stands at a transformative crossroads where artificial intelligence meets traditional aerospace engineering, promising to reshape how aircraft operate in both military and civilian contexts. On September 23, 2025, GE Aerospace and Merlin announced a groundbreaking collaboration to develop an “autonomy core” initiative that represents one of the most significant partnerships in autonomous aviation technology. This strategic alliance combines GE Aerospace’s proven expertise in flight management systems, which currently operates across more than 14,000 aircraft globally, with Merlin’s cutting-edge autonomous flight technology that has been tested through hundreds of autonomous flights worldwide. The partnership addresses critical industry challenges including an acute global pilot shortage, aging military aircraft fleets requiring modernization, and the growing demand for cost-effective autonomous flight capabilities across both defense and commercial aviation sectors.

The initiative specifically targets the U.S. Air Force’s KC-135 tanker fleet modernization program as its initial deployment platform, with broader applications planned for transport aircraft and eventual expansion into civilian aviation markets. By leveraging both companies’ strengths, GE Aerospace and Merlin aim to set a new standard for high-assurance aerial systems, reducing crew workload, and enabling single pilot operations (SPO) as a stepping stone to fully uncrewed flight.

Background and Strategic Context

The foundation for this partnership rests on decades of aerospace innovation from both companies, each bringing complementary expertise to address modern aviation challenges. GE Aerospace has established itself as a global leader in aerospace propulsion, services, and systems, maintaining an installed base of approximately 49,000 commercial and 29,000 military aircraft engines worldwide. The company’s Flight Management System footprint encompasses more than 14,000 aircraft globally, creating an extensive platform for introducing advanced autonomous capabilities to both legacy military platforms and next-generation aircraft. This established infrastructure provides a crucial advantage in deploying autonomous technologies at scale, as existing aircraft can be retrofitted with enhanced capabilities rather than requiring entirely new platforms.

Merlin has emerged as the leading U.S.-based developer of cost-effective, takeoff-to-touchdown autonomy for both legacy and next-generation airborne systems. Founded with the mission to build an AI-powered operating system that allows aircraft of all sizes to fly autonomously, Merlin has successfully demonstrated its aircraft-agnostic software across five different types of aircraft since its first autonomous flight in 2019. The company has secured more than $100 million in total prime contracts from military customers, including a significant $105 million production contract from United States Special Operations Command (USSOCOM) to integrate the “Merlin Pilot” system on C-130J aircraft. This track record demonstrates both the technical viability of Merlin’s approach and the military’s confidence in autonomous flight technology for critical operations.

The timing of this partnership reflects broader industry trends toward automation and the pressing need to address personnel shortages across the aviation sector. The global aviation industry faces an unprecedented pilot shortage, with industry experts projecting a need for between 649,000 and 674,000 new pilots between 2024 and 2043. This shortage affects all regions globally, with North America alone requiring approximately 226,000 new pilots over the next 18 years. The shortage stems from multiple factors including the retirement of Baby Boomer generation pilots reaching the mandatory retirement age of 65, training bottlenecks, high training costs often exceeding $100,000, and the lasting impact of COVID-19 disruptions on pilot training and hiring. These challenges create compelling economic and operational incentives for developing autonomous flight technologies that can reduce crew requirements and enhance operational efficiency.

The Autonomy Core Initiative: Technical Innovation and Implementation

The autonomy core initiative represents a sophisticated integration of artificial intelligence, flight management systems, and autonomous flight technology designed to create what the companies describe as “the system of record for high assurance aerial systems.” This next-generation autonomy and pilot-assist platform aims to bring AI-enabled capabilities to existing and future military and civil aircraft, specifically addressing the growing demand for crew reduction efforts and enabling single pilot operations (SPO). The technical approach combines GE Aerospace’s proven Flight Management System expertise and Modular Open System Architectures with Merlin’s autonomy software to unlock new capabilities that redefine possibilities for next-generation autonomous flight.

The Merlin Pilot system serves as the core autonomous technology component, featuring aircraft-agnostic AI software that has been purpose-built for military and civil programs. This system demonstrates remarkable versatility, having been tested across multiple aircraft types and proven capable of handling every aspect of piloting “from takeoff to touchdown.” The technology incorporates natural language processing capabilities that enable it to listen to air traffic control instructions and automatically convert them into detailed instructions that flight management systems can execute, eliminating the need for human pilots to manually enter each instruction. This capability represents a significant advancement over current flight management systems, which require manual input for any changes to flight plans or air traffic control directives.

A critical aspect of the Merlin Pilot’s design philosophy centers on “true onboard autonomy,” meaning the system does not require any link to ground-based control stations for operation. All software components operate aboard the aircraft and make independent decisions based on sensors installed on the airplane, providing resilience against communication disruptions that could compromise mission effectiveness. The system can even navigate without GPS signals, employing alternative navigation systems whose specific details remain classified for security reasons. This autonomous capability proves particularly valuable for military applications where communication links may be compromised or unavailable in contested environments.

“Our national security relies heavily on our continued air power dominance, and integrated systems that allow for the use of autonomy-focused solutions are essential to that ongoing strength.” — Matt George, CEO of Merlin

Military Applications and the KC-135 Modernization Program

The partnership’s initial focus on the U.S. Air Force’s KC-135 tanker fleet represents both a strategic opportunity and a critical military need. The KC-135 Stratotanker, which entered service in 1957, remains one of nine military fixed-wing aircraft with over 60 years of continuous service with its original operator. The aging fleet averages 60 years old, with studies concluding that many aircraft could be flown until 2030, although maintenance costs have greatly increased. The Air Force currently maintains a fleet size requirement of no fewer than 466 tanker aircraft, a mandate established by Congress to ensure adequate aerial refueling capabilities for joint force operations.

The KC-135 Center Console Refresh (CCR) program serves as the targeted entry point for introducing the autonomy core technology. This critical modernization effort aims to replace aging and out-of-production cockpit components while addressing Diminishing Manufacturing Sources and Material Shortages (DMSMS) challenges that threaten the sustainability and mission readiness of the Air Force’s refueling fleet. The program builds upon Merlin’s existing agreement with the Air Force Materiel Command (AFMC) to integrate autonomy onto the KC-135 as a first step toward uncrewed flight capabilities. The formal competition for the CCR program could begin as early as fall 2025, positioning this partnership to compete for upcoming Department of Defense programs.

Recent modernization efforts on the KC-135 have included significant avionics upgrades designed to enhance capabilities and improve reliability, such as the Pacer-CRAG and Block 45 programs. These modernization efforts create a foundation for integrating autonomous flight capabilities, as the digital systems provide the necessary interfaces for AI-powered flight management. The military applications extend beyond the KC-135 to include transport aircraft such as the C-130J, where the partnership envisions reducing crew requirements from two pilots to one and eventually to zero. This capability addresses multiple military priorities including pilot shortage mitigation, reduced personnel exposure to dangerous environments, and enhanced operational efficiency in contested logistics missions.

Market Dynamics and Economic Implications

The autonomous aircraft market represents one of the fastest-growing segments within the broader aerospace industry, driven by technological advancements and pressing operational needs. According to industry analysis, the global autonomous aircraft market was valued at USD 11.67 billion in 2024 and is projected to reach USD 48.34 billion by 2033, exhibiting a compound annual growth rate (CAGR) of 16.25%. Alternative market assessments suggest even more aggressive growth, with projections indicating the market could reach USD 54.7 billion by 2034 with a CAGR of 22.1%. North America currently dominates this market, holding a share exceeding 38.2% due to substantial investments in defense technologies, technological advancements, and the presence of major aerospace companies driving innovation.

The flight management systems market, which provides the foundation for integrating autonomous capabilities, was valued at USD 3.4 billion in 2024 and is expected to reach USD 4.5 billion by 2033, growing at a CAGR of 2.65%. North America maintains dominance in this market as well, accounting for 35.5% of market share due to robust aviation infrastructure, significant defense and commercial aviation investments, advanced technology adoption, and the presence of major aerospace manufacturers. The relatively modest growth rate of traditional flight management systems compared to autonomous aircraft technology suggests significant opportunities for companies that can successfully integrate these technologies.

The economic drivers supporting autonomous aviation development include substantial potential cost savings through reduced crew requirements, enhanced operational efficiency, and improved safety outcomes. The global pilot shortage creates immediate economic pressures, with training costs for new pilots often exceeding $100,000 and lengthy training periods that cannot quickly address current shortfalls. Airlines are responding by increasing pilot salaries significantly, with median salaries for First Officers and Captains in Europe increasing by 27.58% and 49.46% respectively in 2024. These rising personnel costs create strong economic incentives for developing autonomous technologies that can reduce crew requirements while maintaining or enhancing safety standards.

The Department of Defense has requested $9.4 billion in its FY26 budget to advance autonomous and hybrid aircraft programs, reflecting government commitment to this technological shift.

Competitive Landscape and Industry Partnerships

The autonomous aviation sector features multiple companies pursuing various technological approaches and market segments, creating a dynamic competitive environment that drives innovation and strategic partnerships. Merlin’s partnerships extend beyond GE Aerospace to include collaborations with other major aerospace companies, demonstrating the industry’s recognition of the need for integrated solutions rather than isolated technological development. The Memorandum of Understanding with Honeywell, announced in October 2024, focuses on integrating Merlin Pilot with Honeywell Anthem’s advanced avionics suite to reduce pilot workloads and enhance operational efficiency for special missions.

Other industry players include Collins Aerospace, which is developing “pilot-centric autonomy” systems designed to assist rather than replace pilots, and Joby Aviation, which has demonstrated fully autonomous flight capabilities in U.S. Defense exercises. Airbus, meanwhile, is pursuing multiple autonomous flight projects, including autonomous air-to-air refueling and extended minimum crew operations, emphasizing gradual introduction and regulatory compliance.

The competitive landscape also includes established aerospace companies such as Boeing, Lockheed Martin, Northrop Grumman, and BAE Systems, each developing autonomous capabilities for specific applications and market segments. The trend toward collaboration rather than purely competitive relationships suggests that successful autonomous aviation solutions will emerge from partnerships that combine complementary capabilities and market access.

Regulatory Framework and Safety Considerations

The development and deployment of autonomous aviation technology operates within a complex regulatory environment that balances innovation with safety requirements. Regulatory agencies, including the Federal Aviation Administration (FAA) in the United States and international counterparts, must develop new frameworks for certifying autonomous flight systems while ensuring they meet or exceed existing safety standards. Military systems often have more flexibility for testing and deployment, providing an initial proving ground for technology before civilian adoption.

Safety considerations for autonomous aviation systems encompass multiple technical and operational factors including sensor reliability, artificial intelligence decision-making capabilities, cybersecurity protection, and failure mode management. The Merlin Pilot system’s design philosophy of “true onboard autonomy” addresses some regulatory concerns by eliminating dependence on external communication links that could be compromised or interrupted. However, this approach also requires robust onboard systems capable of handling all flight situations independently, creating technical challenges that must be thoroughly tested and validated before regulatory approval.

The integration of autonomous systems with existing aircraft and air traffic control infrastructure presents additional regulatory challenges that require coordination between multiple stakeholders. Collins Aerospace’s pilot-centric autonomy approach provides insights into transitional strategies that maintain human oversight while introducing autonomous capabilities, potentially offering pathways for gradual integration that minimizes disruption to existing systems.

Conclusion

The partnership between GE Aerospace and Merlin represents a pivotal moment in the evolution of autonomous aviation technology, combining established aerospace expertise with cutting-edge artificial intelligence capabilities to address critical industry challenges. The collaboration addresses immediate needs including the global pilot shortage affecting military and commercial aviation, while positioning both companies to lead the transformation toward autonomous flight capabilities. The initial focus on the U.S. Air Force’s KC-135 tanker modernization program provides a practical pathway for demonstrating autonomous capabilities in operational environments while building the foundation for broader applications across military and civilian aviation.

The broader implications of this partnership extend beyond the immediate commercial opportunities to encompass national security considerations, international competitiveness, and the fundamental transformation of aviation operations. The development of autonomous aviation capabilities will likely influence military effectiveness, economic competitiveness, and the structure of the global aviation industry for decades to come. Success in this initiative could establish American leadership in autonomous aviation technology while providing solutions to critical operational challenges facing both military and commercial aviation operators worldwide.

FAQ

What is the main goal of the GE Aerospace and Merlin partnership?
The partnership aims to develop an “autonomy core” for advanced aviation, integrating artificial intelligence and flight management systems to enable crew reduction, single pilot operations, and eventually uncrewed flight for both military and commercial aircraft.

Which aircraft will be the first to use this autonomy core technology?
The U.S. Air Force’s KC-135 tanker fleet is the first targeted platform, with plans to expand to transport aircraft like the C-130J and eventually to civil aviation markets.

How does the Merlin Pilot system work?
Merlin Pilot is an AI-powered, aircraft-agnostic software that can handle every phase of flight from takeoff to touchdown. It uses onboard sensors and natural language processing to interpret and execute air traffic control instructions, operating independently without needing ground-based control links.

What are the main challenges to widespread adoption of autonomous aviation?
Key challenges include regulatory approval, integration with existing aircraft and air traffic systems, ensuring safety and cybersecurity, and demonstrating reliability across diverse operational scenarios.

What are the economic drivers for autonomous aviation technology?
Economic incentives include addressing the global pilot shortage, reducing crew and training costs, improving operational efficiency, and enhancing safety outcomes.

Sources: PR Newswire