Defense & Military
USAF and Merlin Partner to Advance Autonomous Military Flight Systems
USAF and Merlin collaborate to improve autonomous contingency management in military aircraft using the government-owned A-GRA framework.
Merlin and U.S. Air Force Forge Alliance for Autonomous Flight
In a significant move toward the future of aerial operations, the United States Air Force (USAF) has officially partnered with Merlin, a company at the forefront of autonomous flight technology. This collaboration, formalized through a Cooperative Research and Development Agreement (CRADA), signals a strategic push to integrate advanced AI into military aviation. The core objective is to enhance the autonomous capabilities of aircraft, specifically in managing unexpected events and system failures during missions. This partnership aims to create a more resilient and adaptable air fleet, capable of operating effectively in complex and unpredictable environments.
The collaboration centers on advancing the Autonomy-Government Reference Architecture (A-GRA), a foundational framework for autonomous systems within the military. By working together, Merlin and the USAF intend to develop and refine technologies that allow uncrewed and collaborative aircraft to detect, diagnose, and recover from in-flight issues without human intervention. This initiative is not just about technological advancement; it represents a foundational shift in operational strategy, aiming to reduce the cognitive load on human operators and increase the survivability and mission success rate of aerial assets. The outcomes of this CRADA are expected to set new standards for the defense industry, promoting open and modular solutions that can be applied across a wide range of current and future aircraft platforms.
Advancing Contingency Management in Military Aviation
The primary focus of the Merlin-USAF collaboration is to revolutionize contingency management for military aircraft. In the high-stakes environment of aerial operations, the ability to respond to unforeseen events, such as system malfunctions, adverse weather, or changing threats, is critical. This partnership directly addresses this need by concentrating on autonomous fault detection, recovery, and dynamic mission adaptation. The goal is to equip aircraft with the intelligence to handle these challenges independently, ensuring the mission can continue or be safely aborted without direct pilot control. This capability is essential for the next generation of uncrewed aerial systems and collaborative combat aircraft that will operate in increasingly contested airspace.
The Role of the Autonomy-Government Reference Architecture (A-GRA)
At the heart of this initiative is the Autonomy-Government Reference Architecture (A-GRA). This government-owned, open architecture serves as a common blueprint for developing autonomous systems. By building upon the A-GRA, the USAF aims to ensure that new technologies are interoperable, scalable, and secure. The collaboration with Merlin will contribute directly to this framework, providing design enhancements and software solutions that can be shared across the defense ecosystem. This approach avoids vendor-lock and encourages innovation from a broader range of industry partners, ultimately accelerating the development and deployment of trusted autonomous capabilities for the warfighter.
Merlin’s contribution will leverage its deep expertise in autonomy architecture and human-machine teaming. The company’s work will focus on creating sophisticated algorithms that can process vast amounts of data in real-time to make critical decisions. This includes identifying system degradations before they become catastrophic failures and dynamically replanning mission objectives based on the current operational picture. The result is an aircraft that is not just following a pre-programmed path but is actively problem-solving to ensure its own survival and the success of its mission.
The emphasis on a government-owned architecture is a strategic decision by the Air Force. It ensures that the core intellectual property for these critical systems remains within the Department of Defense, allowing for greater control, security, and flexibility in future acquisitions. This model fosters a more collaborative relationship between the military and its industry partners, moving away from proprietary, black-box solutions toward a more transparent and integrated development process.
“Contingency management is essential to achieving the Air Force’s vision of trusted, resilient autonomy. Through this collaboration, we can align Merlin’s expertise with the USAF’s operational priorities, helping to define autonomy standards that strengthen the entire defense ecosystem.” – Chris Gentile, General Manager for Tactical Autonomy at Merlin.
Building a Resilient and Adaptable Force
The long-term vision for this partnership extends beyond just technology. It is about building a more resilient and adaptable fighting force. As the nature of warfare evolves, the ability to deploy autonomous systems that can think and react in dynamic environments becomes a significant strategic advantage. These systems can operate in areas too dangerous for human pilots, persist for longer durations, and manage complex tasks that would overwhelm a human operator. By offloading the cognitive burden of contingency management to the machine, pilots and mission commanders can focus on higher-level strategic decisions.
This CRADA also reflects a broader trend within the Department of Defense to leverage the innovation of commercial technology companies. The AFWERX program, which is involved in this agreement, is specifically designed to bridge the gap between the Air Force and the tech industry. By partnering with companies like Merlin, the USAF can tap into a pool of talent and cutting-edge technology that might otherwise be inaccessible through traditional defense procurement channels.
The solutions developed through this collaboration are intended to be modular, meaning they can be integrated into a variety of aircraft platforms, both new and existing. This plug-and-play approach will allow the Air Force to upgrade its fleet more rapidly and cost-effectively, ensuring that it can keep pace with emerging threats and technological advancements. The ultimate goal is to create a network of intelligent, collaborative systems that can work together seamlessly to achieve mission objectives in the most challenging operational scenarios.
“To maintain our strategic advantage, the Air Force must leverage the ingenuity of industry partners like Merlin. This CRADA will help us build on a common, government-owned architecture for autonomous systems, ensuring interoperability, accelerating innovation, and ultimately, delivering resilient and adaptable capabilities to our warfighters.” – Major Dustin Graves, AFWERX.
Conclusion: Charting the Future of Autonomous Defense
The collaboration between Merlin and the U.S. Air Force represents a critical step forward in the evolution of military aviation. By focusing on autonomous contingency management and building upon a common, government-owned architecture, this partnership is laying the groundwork for a future where uncrewed and collaborative aircraft can operate with unprecedented levels of intelligence and resilience. The initiative moves beyond theoretical research, aiming to deliver tangible capabilities that will enhance mission assurance, reduce operator workload, and increase the survivability of aircraft in diverse and dangerous scenarios.
Looking ahead, the success of this CRADA could have far-reaching implications for the entire defense industry. It champions a model of open architecture and public-private partnership that encourages broader innovation and interoperability. As autonomous systems become more integrated into military operations, the standards and technologies developed through this effort will likely influence the design of future aerial platforms worldwide. This strategic alignment ensures that the U.S. maintains its technological edge while fostering a more robust and collaborative defense ecosystem prepared for the challenges of the 21st century.
FAQ
Question: What is a CRADA?
Answer: A Cooperative Research and Development Agreement (CRADA) is a formal agreement between a government agency and a private company or university to work together on research and development.
Question: What is the main goal of the Merlin and USAF collaboration?
Answer: The primary goal is to enhance the Autonomy-Government Reference Architecture (A-GRA) to improve autonomous contingency management, allowing military aircraft to better handle unforeseen events and system failures without human intervention.
Question: Why is a government-owned architecture important?
Answer: A government-owned architecture like the A-GRA ensures interoperability between systems from different vendors, prevents reliance on proprietary technology, and gives the military greater control and security over its critical autonomous capabilities.
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Photo Credit: Merlin
Defense & Military
SNC and Skyryse Partner to Retrofit Fleets With SkyOS Automation
SNC and Skyryse will integrate SkyOS fly-by-wire automation into existing defense and commercial aircraft fleets via FAA ODA certification.
Sierra Nevada Corporation (SNC) and aviation technology company Skyryse have formed a collaboration to integrate software-defined flight automation into existing military and commercial aircraft fleets.
Announced on October 27, 2026, the partnership aims to retrofit legacy airframes with Skyryse’s SkyOS system, enabling optionally piloted operations and reduced crew workload without the capital expenditure required to procure new aircraft. The initial focus of the collaboration will target defense platforms.
Certification and integration strategy
The collaboration pairs Skyryse’s flight control technology with SNC’s established aircraft modification and certification infrastructure. A key component of the partnership involves 3S Engineering and Certification, a wholly owned SNC subsidiary based in Wichita, Kansas.
The subsidiary holds a Federal Aviation Administration (FAA) Organization Designation Authorization (ODA). This status grants the company the authority to issue Supplemental Type Certificates (STCs) and certify equipment installations, providing a direct regulatory pathway for integrating SkyOS into operational fleets.
SNC Executive Vice President Jon Piatt noted the practical advantages of the approach. “Modernizing a fleet doesn’t always mean buying new aircraft,” Piatt said in a press release.
Skyryse Founder and CEO Mark Groden emphasized the speed of retrofitting compared to clean-sheet aircraft development.
“The fastest way to modernize a fleet is to upgrade the aircraft already in it, and we’ve shown on the Black Hawk that SkyOS can do that in months, not years. SNC’s certification and integration expertise gives us the path to bring a new level of automation and capability to existing fleets at scale,” Groden said.
The UH-60 Black Hawk proof of concept
The foundation for the SNC partnership stems from a late 2025 technology demonstration. On December 22, 2025, Skyryse achieved the first flight of a UH-60 Black Hawk equipped with the SkyOS system.
The integration process for the Black Hawk was completed in 91 days. During the demonstration, the system executed automated pickup, hover, and setdown maneuvers, validating the aircraft-agnostic design of the software.
SkyOS replaces traditional mechanical flight control linkages with a triply redundant fly-by-wire system. The interface utilizes a four-axis joystick and touchscreen displays, designed to simplify pilot inputs and manage complex flight envelopes automatically.
“SNC has spent more than 60 years modifying and sustaining aircraft for demanding missions,” Piatt said. “Pairing that experience with SkyOS gives us a way to explore new levels of automation that can reduce operator workload, support more consistent decision-making and help crews focus on the mission.”
Expanding partnerships in the automation sector
The SNC agreement follows a series of strategic moves by Skyryse to position its technology across both commercial and defense markets. Founded in 2016 and based in El Segundo, California, the company initially focused on the civil sector, developing the Skyryse One, a proprietary aircraft based on the Robinson R66 platform.
In recent weeks, Skyryse has rapidly expanded its defense and unmanned applications. On September 23, 2026, the company announced a partnership with BAE Systems Australia to evaluate integrating SkyOS with BAE’s Vehicle Management System (VMS) for autonomous flight applications.
The following day, on September 24, 2026, Skyryse formalized an agreement with Robinson Helicopter Company to develop a Group 4 unmanned aircraft system (UAV) for defense applications, utilizing the R66 airframe powered by SkyOS.
SNC, founded in 1963 and operating as a privately owned mid-tier aerospace and defense contractor, brings the scale required to transition these technologies from prototypes to fielded military assets. The defense and commercial aviation sectors are increasingly looking toward optionally piloted and autonomous flight systems to extend the operational life of legacy airframes.
AirPro News analysis
The defense aviation sector is currently navigating a tension between the desire for advanced autonomous capabilities and the reality of constrained procurement budgets. By focusing on retrofitting existing platforms like the UH-60 Black Hawk, SNC and Skyryse are targeting a lucrative middle ground. This approach extends the operational relevance of legacy airframes while introducing optionally piloted capabilities that modern combat doctrines increasingly demand.
The most critical element of this collaboration is SNC’s ODA status through its 3S Engineering subsidiary. In aviation technology, the bottleneck is rarely the software itself; it is the certification pathway. By pairing a nimble aviation startup with an established defense contractor that holds STC authority, the partnership bypasses the traditional regulatory friction that often delays the fielding of novel flight control systems.
Photo Credit: Skyryse
Defense & Military
Volatus Aerospace Completes AISPECO Acquisition for $10.5M
Volatus Aerospace finalizes its $10.5M acquisition of Lithuanian sensor developer AISPECO UAB, gaining an EU and NATO manufacturing base.
Volatus Aerospace Inc. (TSX: FLT) has finalized its acquisition of Lithuanian sensor and software developer AISPECO UAB, securing a direct manufacturing foothold in the European Union and NATO.
The transaction, announced in a press release on October 28, 2026, vertically integrates AISPECO’s proprietary airborne sensor platforms and mission software into Volatus’ existing uncrewed and piloted aircraft operations. The deal carries a base transaction value of $10.5 million, with an additional $2.5 million in contingent earnouts tied to three-year performance milestones.
Financial structure and milestone targets
The completion of the acquisition follows an initial agreement announced on October 14, 2026. The $10.5 million base consideration consists of $3.0 million in cash, the issuance of 17,434,193 Volatus common shares at a deemed price of C$0.5813 per share, and the granting of 1,859,804 Restricted Share Units (RSUs).
An additional $2.5 million in contingent consideration may be paid to AISPECO between October 2026 and October 2029. These earnouts are payable in cash or shares and depend on the achievement of specified financial, commercial, and product-development milestones over the three-year period. While some financial aggregators have characterized the transaction as a $13 million deal, official breakdowns confirm this higher figure is only reached if all future performance targets are met.
The acquisition also marks a successful exit for venture firm Superhero Capital. The backer had previously invested EUR 2.5 million in AISPECO across funding rounds in 2022 and 2024.
Integrating sensor technology with aircraft operations
AISPECO develops and manufactures advanced geospatial systems designed for both fixed-wing aircraft and Helicopters. The company’s product portfolio includes HELIUX modular sensor pods, the FOCUS AI-guided gimbal, CORE electronics, and ROBINCOP flight-management software. The platform is designed to support multiple sensor types and currently holds certification for installation on more than 20 different aircraft types, with two European patent applications pending.
Prior to the acquisition, AISPECO had sold approximately 50 complete systems to customers across North America, Latin America, Europe, Asia, and Australia. These technologies are primarily utilized for the inspection of power grids, gas pipelines, and transport infrastructure, alongside applications in forest inventory, urban mapping, defence, and border surveillance.
Volatus Aerospace CEO Glen Lynch stated that the acquisition brings the company closer to delivering a complete, end-to-end aerial intelligence ecosystem.
“By integrating AISPECO’s proprietary sensors and software with our aircraft platforms and operational capabilities, we can accelerate innovation, strengthen our technology base and deliver more comprehensive solutions to defence, industrial and commercial customers worldwide,” Lynch said.
Expanding European defence and commercial footprint
Headquartered in Mirabel, Québec, Volatus Aerospace operates an Operations Control Centre (OCC) for remote and autonomous flights and manufactures Uncrewed Aerial Vehicles (UAVs), including the Condor XL heavy-lift cargo drone. The company has historically focused on delivering intelligence and cargo solutions through both piloted and remotely piloted aircraft systems.
Founded in 2020 and based in Vilnius, Lithuania, AISPECO brings rapid financial growth to the combined entity. The Lithuanian firm generated C$5.72 million in fiscal 2025 revenue, a figure that more than doubled its fiscal 2024 revenue.
The integration of AISPECO provides Volatus with a direct engineering and manufacturing base in a NATO and European Union member country. This European presence complements the company’s existing Canadian manufacturing operations and is intended to support broader opportunities in government and allied defence markets.
AirPro News analysis
We view the acquisition of AISPECO as a structural shift for Volatus Aerospace, transitioning the company from an operator and distributor of aircraft systems into a vertically integrated technology provider. By bringing sensor payload and mission software development in-house, Volatus captures a larger share of the value chain in the aerial intelligence market. Securing a manufacturing base in Lithuania also provides a distinct strategic advantage for European defence procurement, where domestic sourcing requirements within NATO and the European Union increasingly dictate contract awards.
Photo Credit: Volatus Aerospace
Defense & Military
Bombardier and BAE Systems Sign MOU for Combat Air Programs
Bombardier and BAE Systems signed an MOU on Oct 28, 2026, to explore next-generation combat air collaboration.
Bombardier and BAE Systems have signed a strategic Memorandum of Understanding (MOU) to explore joint development of industrial and technology capabilities for next-generation combat air programs.
Announced in a press release on October 28, 2026, the bilateral agreement positions the Canadian aerospace manufacturer to integrate its engineering and manufacturing footprint into allied military aviation requirements. The partnership aligns with Canada’s broader defense strategy, coming three months after the country formally engaged with international sixth-generation fighter development efforts.
Strategic framework and capability exploration
The MOU establishes an exploratory framework to identify practical areas of cooperation aligned with future capability requirements and government priorities. Rather than a commitment to a specific aircraft program, the agreement serves to connect Bombardier’s specialized supplier ecosystems with BAE Systems’ combat air expertise.
Stephen McCullough, Executive Vice President of Engineering, Product Development and Bombardier Defense, stated that the company is positioned to develop the talent required for programs carrying a generational impact on the defense industry.
“This MOU with BAE Systems provides a clear framework to explore how these capabilities can support next-generation defence programs, while strengthening industrial capacity, high-value jobs and long-term aerospace leadership,” McCullough said.
Simon Barnes, Group Managing Director of BAE Systems Air, noted the opportunity to support the strategic aims of Canada’s Defence Industrial Strategy through the collaboration.
“BAE Systems brings decades of combat air experience spanning aircraft design, systems integration, manufacturing and support. This agreement marks an important step in our ambition to strengthen international partnerships that support the future of combat air,” Barnes said.
Canada’s evolving role in next-generation air combat
The partnership materializes as Canada deepens its involvement in international air combat initiatives. On July 21, 2026, the Department of National Defence announced that Canada had joined the Global Combat Air Programme (GCAP) as its first observer nation.
GCAP is a multinational initiative led by the United Kingdom, Italy, and Japan to develop a sixth-generation fighter jet. Observer status allows the Canadian government to assess potential future participation and gain insight into the program’s governance and industrial framework. Crucially, the designation enables the identification of opportunities for domestic companies without requiring an immediate financial commitment from the state.
The bilateral agreement positions Bombardier to capture future procurement cycles as Canada evaluates its long-term role in next-generation air combat initiatives.
Industrial positioning and defense adaptation
Bombardier primarily designs, builds, and maintains the Global and Challenger families of business jets. The company reports a global operating fleet of over 5,300 aircraft, supported by 10 service facilities across six countries.
The manufacturer’s specialized division, Bombardier Defense, focuses on adapting these civilian airframes for military and government missions. The unit emphasizes reliability, performance, and adaptability for specialized operations. By partnering with BAE Systems, Bombardier seeks to expand its defense footprint beyond modified business jets and into the broader combat air supply chain.
BAE Systems operates as one of the primary industrial partners in GCAP, working alongside Italy’s Leonardo and Japan’s Mitsubishi Heavy Industries. The British aerospace and defense company brings extensive experience in systems integration and military aircraft manufacturing to the exploratory partnership with Bombardier.
AirPro News analysis
We view this MOU as a calculated positioning move by Bombardier to secure high-value engineering work within the lucrative sixth-generation fighter ecosystem. While Bombardier is not a traditional combat aircraft prime contractor, modern air combat programs rely heavily on distributed systems, advanced materials, and specialized sensor integration. By partnering with a Tier 1 prime like BAE Systems, Bombardier can leverage its existing aerospace engineering workforce and supply chain to capture defense revenue streams without the prohibitive cost of developing clean-sheet military airframes.
This industrial alignment also provides the Canadian government with tangible domestic economic benefits as it evaluates deeper participation in GCAP. Securing a role for a major domestic aerospace employer like Bombardier makes the political case for future Canadian financial investment in GCAP significantly stronger.
Photo Credit: BAE Systems
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