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FAA Awards $875M AI Air Traffic Contract to ASI

The FAA awarded Air Space Intelligence an $875M, 12-year contract to deploy AI-driven air traffic management software across the NAS.

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The Federal Aviation Administration (FAA) has awarded an $875 million, 12-year contract to technology firm Air Space Intelligence (ASI) to deploy artificial intelligence-driven air traffic management software across the United States National Airspace System (NAS).

Announced in a press release on June 22, 2026, the agreement centers on two new platforms: Flow Management Data and Services (FMDS) and Strategic Management of Airspace, Routes, and Trajectories (SMART). The initiative aims to shift the agency’s traffic management from reactive to proactive predictive modeling, addressing chronic airspace congestion and reducing flight delays.

Modernizing the National Airspace System

The contract represents a major step in overhauling the technology used by air traffic controllers. In 2025, Congress awarded the FAA $12.5 billion to replace outdated technology and bolster understaffed air traffic control facilities. The agency has faced ongoing challenges with airspace congestion, rising demand, and severe weather, which recently prompted flight cuts at major hubs including Chicago O’Hare International Airport (ORD) and New York-area airports.

U.S. Transportation Secretary Sean P. Duffy highlighted the operational goals of the new software platforms.

“We’re already making remarkable progress on upgrading the radars, radios, and telecom wires air traffic controllers rely on thanks to the Working Families Tax Cut. But to really improve the flying experience for the traveling public, we must change how flights are managed. We’re thrilled to partner with ASI to begin developing these two new software platforms. Once implemented, we will fundamentally reshape how the airspace is managed, slashing thousands of delays and cancellations in the process.”

FAA Administrator Bryan Bedford noted that air traffic professionals manage thousands of scheduling conflicts daily, which cascade into delays for the traveling public. Bedford stated that FMDS and SMART will help address these challenges by improving airspace management before flights depart, thereby reducing congestion and easing controller workload.

The National Air Traffic Controllers Association (NATCA) clarified to FLYING Magazine that the new predictive systems will not handle safety-critical functions involving the separation of aircraft.

Air Space Intelligence secures major federal contract

To secure the contract, ASI reportedly beat out major defense and technology contractors Palantir Technologies Inc. and Thales SA, according to Bloomberg. ASI’s Flyways AI platform is already in operational use by major commercial carriers, including Alaska Airlines (AS), Delta Air Lines (DL), and United Airlines (UA), as well as the U.S. Air Force.

ASI CEO Phillip Buckendorf stated that the FAA is embracing commercially proven technology that is already helping the aviation community operate more efficiently. Prior to the contract award, the company invested heavily in the platform’s development.

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“ASI has spent years building and proving our technology in the most demanding operational environments in American aviation with the major airlines and the Department of War. We have invested nearly $100 million of our own resources to develop a platform that is operational today, and we are honored to bring that same proven capability to the FAA and to the American people at national scale,” said Bernard Asare, President of Civil Aviation at ASI.

Implementation timeline and industry reception

The FAA and ASI are targeting an initial operational deployment of the SMART system for fall 2026. The full transition and rollout of the new technologies are expected to be completed by the end of 2028.

Despite the anticipated benefits, the aggressive timeline has generated some skepticism. According to reporting by Investing.com, airlines have expressed private concerns regarding the rapid deployment schedule and how the agency will manage conflict resolution when flights need to be moved or rescheduled under the new system.

AirPro News analysis

The FAA’s decision to award an $875 million contract to Air Space Intelligence rather than established aerospace defense contractors like Thales or Palantir signals a distinct shift in federal procurement strategy. By selecting a company whose software is already integrated into the dispatch and routing operations of major US carriers, the FAA is prioritizing commercially proven, agile technology over ground-up custom builds.

The targeted fall 2026 initial deployment for the SMART system is highly ambitious for a federal aviation IT project. The private concerns voiced by airlines are well-founded, as integrating predictive AI into the National Airspace System requires seamless coordination between airline operations centers and FAA flow management. We expect the primary hurdle will not be the software’s capability, but rather the procedural integration and controller adoption required to make proactive flight rerouting a standard operational practice without disrupting airline schedules.

Sources: Federal Aviation Administration

Photo Credit: Air Space Intelligence

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SkyDrive Studies 146 Osaka Rooftops for eVTOL Vertiports

SkyDrive targets 146 Osaka rooftop emergency helipads for eVTOL vertiport conversion, aiming for 2028 commercial service.

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SkyDrive Studies 146 Osaka Rooftops for eVTOL Vertiports

Japanese electric vertical takeoff and landing (eVTOL) developer SkyDrive Inc. has initiated a feasibility study to convert 146 existing rooftop emergency landing sites in Osaka City into commercial vertiports, aiming to bypass the high costs and space constraints of ground-up infrastructure in dense urban centers.

Announced in an October 1, 2026, press release, the initiative brings together local government entities and corporate partners, including Chodai Co. Ltd., Kansai Electric Power Co. Inc., the Organization of Airport Facilitation, and Osaka Metro. The consortium will evaluate structural and regulatory hurdles ahead of a targeted 2028 commercial service launch in Osaka Prefecture and Osaka City.

Evaluating urban infrastructure

Finding suitable locations for new takeoff and landing sites remains a primary obstacle for urban air mobility operators. In Osaka City, local fire safety regulations require buildings over 100 meters tall to feature rooftop emergency landing sites, which are marked with an “H” symbol. SkyDrive identified 146 such locations that already possess reinforced floor loading, fire suppression systems, and lighting.

Currently, Japanese regulations restrict the use of these helipads exclusively to emergency disaster relief operations. The newly launched study aims to determine what modifications and regulatory exemptions would be required from the Japan Civil Aviation Bureau and the Osaka Municipal Fire Department to open these sites to daily commercial eVTOL traffic.

In its official statement, SkyDrive noted the strategic divergence from other industry players regarding infrastructure use.

“Unlike the global eVTOL market’s primary focus on inter-city transport between major airports and suburban heliports, SkyDrive aims to make daily intra-city travel accessible using compact, quiet, and agile aircraft.”

Regulatory and engineering hurdles

The feasibility study will conduct a comprehensive review of the physical and operational requirements for rooftop vertiports. Engineers will assess floor load capacities to ensure the structures can withstand repeated aircraft landings rather than occasional emergency use.

The survey will also map out passenger movement flows during flight diversions and establish logistics for transporting aircraft off the roof in cases of mechanical failure. The consortium must evaluate airspace compliance, wind patterns at high altitudes, and noise impacts on surrounding urban environments to address regulatory and engineering barriers.

SkyDrive has tailored its aircraft design to align with these infrastructure constraints. In September 2026, the manufacturer published its updated aircraft design concept, which emphasizes low disk loading. This design choice is intended to ensure stable hover capabilities and safe vertical landings directly onto constrained rooftop vertiports, even in single-failure scenarios.

SkyDrive production and operational timeline

The Osaka vertiport study is part of a broader push to establish a viable eVTOL ecosystem in Western Japan. On October 6, 2026, SkyDrive announced a parallel joint initiative with leading enterprises in the Kansai region, including MUFG Bank Ltd., to evaluate the commercial deployment and operational framework for eVTOL aircraft across the wider area.

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These infrastructure and operational studies run concurrently with the company’s manufacturing ramp-up under the leadership of Chief Executive Officer Tomohiro Fukuzawa. SkyDrive began production of the SKYDRIVE (Model SD-05) eVTOL in March 2024 at a facility owned by Suzuki Motor Corporation in Iwata-city, Shizuoka. The plant has a maximum annual production capacity of 100 aircraft.

The company previously conducted extensive demonstration flights at the Expo 2025 in Osaka between July 31, 2025, and August 24, 2025. Data gathered during those flights is now informing the push toward the 2028 commercial launch target shared by SkyDrive and Osaka Metro.

AirPro News analysis

We view the Osaka rooftop study as a highly pragmatic approach to the vertiport real estate bottleneck. Ground-up vertiport construction in tier-one cities requires prohibitive capital expenditure and complex zoning approvals. By targeting existing emergency helipads, SkyDrive is attempting to leverage sunk infrastructure costs. If the consortium can successfully lobby regulators to permit dual-use of these sites, it would create a scalable, low-capex model for intra-city eVTOL networks that other municipalities could replicate.

Photo Credit: SkyDrive Inc.

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BETA ALIA CX300 Flies in Utah as Part of uFLY AAM Program

BETA Technologies demonstrated the all-electric ALIA CX300 in Salt Lake City on Oct. 7, 2026, supporting Utah’s five-state uFLY initiative.

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BETA ALIA CX300 Flies in Utah as Part of uFLY AAM Program

The Utah Department of Transportation (UDOT), BETA Technologies, and aerospace association 47G conducted a flight demonstration of the all-electric ALIA CX300 aircraft in Salt Lake City on October 7, 2026, advancing a multi-state effort to integrate electric aviation into regional transit networks.

According to a press release issued by UDOT, the demonstration serves as a key milestone for uFLY, an initiative designed to accelerate the regulatory and physical infrastructure required for commercial electric flight. The program targets applications including regional passenger travel, cargo delivery, and medical transportation.

The uFLY initiative and regional integration

The October 7 flight is part of a broader strategy to establish an operational ecosystem for Advanced Air Mobility (AAM) across the western United States. In March 2026, the Federal Aviation Administration (FAA) selected UDOT to lead the Electric Vertical Takeoff and Landing (eVTOL) Integration Pilot Program. Utah now heads a five-state partnership that includes Oregon, Idaho, Arizona, and Oklahoma.

The uFLY program allows industry partners to test electric aircraft in real-world conditions, providing data to regulators and local governments as they develop airspace rules and infrastructure standards.

“Transportation is evolving, and we want Utah to help lead the way. For decades, we’ve worked to find better, safer ways to move people. Now, we’re exploring how advanced aircraft can become part of that future. Through uFLY, companies like BETA can test this technology in real-world conditions and help us understand how it can safely integrate into the transportation systems Utahns rely on every day.”

The statement from UDOT Commissioner Carlos Braceras highlights the state’s focus on practical integration over theoretical testing. The multi-state approach is intended to create contiguous corridors where electric aircraft can operate seamlessly across state lines.

Aircraft capabilities and infrastructure development

The aircraft featured in the demonstration, the BETA ALIA CX300, is an all-electric Conventional Takeoff and Landing (CTOL) model. Unlike the company’s ALIA 250 eVTOL variant, the CX300 requires a runway. This design choice allows the aircraft to utilize existing airport infrastructure and established aviation procedures while the industry develops dedicated vertiports.

The ALIA CX300 has a demonstrated maximum range of 336 nautical miles. BETA Technologies designed the aircraft to support high-frequency, short-haul missions such as logistics network reinforcement and critical medical supply transport.

“We designed our ALIA CTOL from the beginning to serve communities more efficiently and at a lower cost, whether that is moving cargo, strengthening logistics networks or supporting critical medical missions. Through uFly and our partnership with UDOT and 47G, Utah is giving us a chance to demonstrate this utility in the real world, while generating the operational experience needed to bring electric aviation into reliable commercial service.”

BETA Technologies Founder and Chief Executive Officer Kyle Clark emphasized the operational experience gained through the Utah partnership. To support these operations, BETA is constructing an integrated charging network. The company is currently installing a high-speed Charge Cube at Salt Lake City International (SLC). The charging infrastructure uses an interoperable format designed to service various emerging electric aircraft types, not just BETA products.

Utah’s aerospace strategy and the 2034 Olympics

The foundation for the October flight was laid on January 28, 2025, when BETA Technologies and 47G signed a memorandum of understanding to develop an AAM ecosystem in Utah. 47G President and CEO Aaron Starks noted that the state’s aerospace industry has committed to developing technologies that will define future transportation, complementing the existing surface transit system.

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State officials view the integration of electric aviation as a critical component of long-term infrastructure planning. Utah Senate President J. Stuart Adams stated that testing these technologies strengthens the local aerospace industry and better connects communities.

A major driver for this accelerated timeline is the 2034 Winter Olympic and Paralympic Games in Salt Lake City. State planners intend to utilize AAM technologies for logistics, emergency response, and regional mobility during the event, requiring a mature and tested electric aviation network well before the end of the decade.

BETA Technologies certification path

The Salt Lake City demonstration follows a series of operational tests by BETA Technologies across the United States. In early October 2026, the ALIA CX300 visited Duncan Aviation in Provo, Utah, as part of a statewide tour. In September 2026, the company launched integration operations in North Carolina to model rural healthcare access and conducted an emergency response demonstration in Texas with Metro Aviation.

BETA Technologies expects to achieve FAA type certification for the ALIA CX300 CTOL airplane in 2026. Securing certification for the CTOL variant first allows the company to begin commercial deliveries and generate revenue while continuing the more complex certification process for its eVTOL model.

AirPro News analysis

The decision by UDOT and BETA Technologies to showcase the ALIA CX300 CTOL aircraft rather than an eVTOL model reflects a pragmatic shift in the advanced air mobility sector. By relying on conventional runways, the CX300 bypasses the immediate need for urban vertiports and complex new airspace management rules. This allows operators to begin flying revenue-generating Cargo aircraft and medical routes using existing general aviation airports, building public trust and operational data while the physical infrastructure for vertical lift matures.

Furthermore, Utah’s leadership of the five-state uFLY consortium addresses one of the primary hurdles facing electric aviation: regulatory fragmentation. By aligning infrastructure standards and operational protocols across Utah, Oregon, Idaho, Arizona, and Oklahoma, the partnership is effectively creating a regional electric aviation corridor. This multi-state alignment provides manufacturers like BETA with a scalable market for early adoption, which is critical as the company moves toward its anticipated 2026 FAA type certification and prepares for the logistical demands of the 2034 Winter Olympics.

Photo Credit: Utah Department of Transportation

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REGENT Craft Opens Seaglider Manufacturing Facility in Rhode Island

REGENT Craft opened its 255,000-sq-ft Rhode Island facility on Sept 30, 2026, targeting serial production and late 2027 deliveries.

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REGENT Craft Opens Seaglider Manufacturing Facility in Rhode Island

REGENT Craft officially opened its 255,000-square-foot Seaglider Manufacturing Facility in North Kingstown, Rhode Island, on September 30, 2026, marking the transition from prototyping to serial production for its all-electric maritime vessels.

The facility opening, supported by a recent $240 million Series B funding round, featured the first public live flight demonstration of the company’s 12-passenger Viceroy prototype and autonomous Squire drone. In a press release issued to coincide with the event, the company outlined its path toward initial customer deliveries in late 2027.

Scaling manufacturing capacity

The ribbon-cutting ceremony at 1 Seaglider Way in the Quonset Business Park drew more than 600 attendees. Notable participants included U.S. Representative Gabe Amo, Kamio Ao of Japan Airlines, Stephen Edwards, CEO of Hornblower, Steven King, Managing Director of the Quonset Development Corporation, and Admiral Butch Dollaga (Ret.), Operating Partner at AE Industrial Partners. The event occurred less than a month after the Viceroy prototype achieved its first ground effect flight on September 9, 2026.

With the new facility operational, REGENT aims to reach an annual production rate of 75 Viceroy vessels and 300 Squire drones at full capacity. The company has raised $340 million in total capital to date, including the recent $240 million Series B round, to support this industrialization effort.

“We proved the technology and the demand; now we build. With $340 million raised to date and 1 Seaglider Way officially open, we’re moving from prototype to production and putting Seaglider vessels in customers’ hands. This is what reindustrializing America looks like: a cutting-edge facility, a first-rate team, and a product the world wants,” said Billy Thalheimer, Co-founder and CEO of REGENT Craft.

Expanding defense partnerships

Alongside its commercial manufacturing milestones, REGENT is expanding its footprint in the defense sector. On October 1, 2026, the company announced a $5 million Phase IV contract extension with the U.S. Marine Corps Warfighting Lab. This extension brings the total value of the contract to $19.25 million.

The extended agreement focuses on demonstrating the full-scale Viceroy prototype in operationally relevant conditions. It also covers the integration of seagliders into military command-and-control systems, evaluating the technology for expeditionary logistics and over-water transport missions.

Thalheimer noted the rapid progression of the military partnership in a statement regarding the contract extension. He stated that what began as a feasibility question has evolved into a real operational program, indicating the trajectory of the technology.

Wing-in-ground-effect technology and market position

Founded by Billy Thalheimer and Mike Klinker, REGENT develops wing-in-ground-effect (WIG) craft designed to provide fast, low-cost, zero-emission coastal transportation. The seagliders operate in three distinct modes. They float on their hulls at the dock, transition onto hydrofoils as speed increases, and fly just above the water’s surface within a wingspan of the water during cruise. Because they operate exclusively over water, the vessels fall under maritime jurisdiction rather than aviation regulations.

The company has amassed a commercial order book valued at $10 billion across six continents. Customers and partners include Ocean Flyer in New Zealand, Japan Airlines, and Hornblower.

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The opening of the North Kingstown facility follows a structured development timeline. The final structural beam was installed on November 14, 2025, and the company announced the completion of the building at the Reindustrialize conference in Detroit on June 16, 2026. The focus now shifts to fulfilling the order book, with targeted first customer deliveries of the 12-passenger Viceroy Seaglider scheduled for late 2027.

AirPro News analysis

REGENT’s transition into a dedicated 255,000-square-foot production facility represents a critical maturation point for the modern wing-in-ground-effect sector. While WIG concepts have existed for decades, they have historically struggled to bridge the gap between experimental prototypes and serial manufacturing. By securing $340 million in capital and establishing a $10 billion order book, REGENT has built a financial foundation that previous WIG developers lacked.

The dual-use strategy is equally significant. The $19.25 million U.S. Marine Corps contract provides non-dilutive funding and operational validation while the commercial side navigates the maritime regulatory framework. Operating under maritime rather than aviation jurisdiction allows REGENT to bypass the lengthy certification processes required by the Federal Aviation Administration (FAA) or the European Union Aviation Safety Agency (EASA), potentially accelerating the path to market for coastal transport operators. We view the concurrent advancement of the commercial manufacturing base and the military operational testing as a strong indicator of the platform’s viability.

Photo Credit: REGENT Craft

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