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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 In 2025, Congress awarded the FAA $12.5 billion to replace outdated technology and bolster understaffed air traffic control facilities.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.

“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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Technology & Innovation

Safran OSYRYS Project Targets Hybrid-Electric Aircraft by 2035

Safran leads the OSYRYS consortium, targeting a 30% CO2 reduction for hybrid-electric regional aircraft by 2035.

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Safran Electrical & Power released a video presentation on June 23, 2026, detailing the OSYRYS project, a European consortium aiming to develop electrical and thermal systems for the first hybrid-electric regional aircraft by 2035.

The project, coordinated by Safran as part of the Clean Aviation Joint Undertaking (CAJU), brings together 24 industrial and academic partners from nine countries. According to the company’s press release, the initiative is designed to reinvent energy management systems to achieve a 30 percent reduction in carbon dioxide emissions compared to 2020 state-of-the-art technology.

The Ultra-Efficient Regional Aircraft initiative

OSYRYS (On-board SYstems Relevant for hYbridization of Regional aircraftS) operates as one of four interrelated projects under the Ultra-Efficient Regional Aircraft (UERA) umbrella. The other three projects include HERACLES for aircraft concept development led by ATR, DEMETRA for flight demonstration also led by ATR, and PHARES for hybrid-electric propulsion led by Pratt & Whitney Canada.

The four consortia officially launched during joint meetings in Brussels, Belgium, in January 2026. The collaborative effort is supported by €140 million in funding from Clean Aviation, complemented by €200 million in in-kind contributions from the participating organizations over a five-year period.

Technical objectives and system architecture

The OSYRYS project specifically targets the development of electrical power generation, power distribution, thermal management, and avionics tailored for energy management. These systems are foundational for the transition to hybrid-electric propulsion in the regional aviation sector.

“OSYRYS is a crucial project for the Regional stream in Clean Aviation, providing paramount power distribution and cooling solutions for the hybrid-electric flight demonstration platform and the next Ultra Efficient Regional Aircraft expected to enter into service in the next decade,”

The statement above was provided by Jaime Perez De Diego, Project Officer for the Clean Aviation Joint Undertaking, during the project’s formal launch phase.

AirPro News analysis

We view the 2035 entry-into-service target for a hybrid-electric regional aircraft as ambitious but structurally supported by the parallel development approach of the UERA projects. By separating the airframe, propulsion, flight demonstration, and internal systems into distinct but coordinated workstreams, the European aviation sector is mitigating the integration risks typically associated with clean-sheet hybrid designs. The success of OSYRYS will largely depend on the consortium’s ability to manage the significant weight penalties inherent in advanced thermal cooling and high-voltage power distribution systems.

Sources: Safran Group

Photo Credit: Safran

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Technology & Innovation

NASA Fabrication Branch Advances Autonomous Air Taxi Research

NASA’s Armstrong Flight Research Center fabrication branch built the AIRVUE pod to generate real-world data for autonomous air taxi software.

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The National Aeronautics and Space Administration (NASA) has detailed the role of its Experimental Fabrication Branch at the Armstrong Flight Research Center in accelerating the development of autonomous flight technologies and advanced Commercial-Aircraft components.

In a feature published on June 22, 2026, the agency highlighted how the Edwards, California-based facility serves as a full-service Manufacturing, modification, and repair center for its fleet of research and science aircraft. By integrating engineering and fabrication early in the design process, the branch shortens development timelines and minimizes design-to-hardware mismatches, supporting broader advancements in aviation safety, efficiency, and sustainability.

Advancing autonomous air taxi research

A primary focus of the facility’s recent work involves the Airborne Instrumentation for Real-world Video of Urban Environments (AIRVUE) sensor pod. The Experimental Fabrication Branch converted digital designs into a fully functional physical structure for the pod, which underwent testing to meet strict safety requirements prior to deployment.

The AIRVUE pod gathers video, laser range finding, and other flight data to populate a comprehensive dataset of actual flight scenarios. According to project details, this dataset is designed to assist developers of electric air taxis in training their aircraft to fly autonomously using onboard Software. NASA concluded the initial phase of the AIRVUE video archive project on December 16, 2024, under the direction of lead researcher Nelson Brown.

Manufacturing capabilities and community outreach

The branch utilizes modern computer-aided design and manufacturing tools to convert digital models into mission-ready hardware. Engineering technicians, including Ron Harris and Alexis Moreno, operate software platforms such as Pro E/Creo, MasterCam, and SolidWorks to execute complex fabrication tasks.

Recent manufacturing projects extend beyond sensor pods. The facility has produced advanced wing-model components and custom lightweight aircraft floorboards tailored for the agency’s specialized research fleet.

STEM engagement and technical demonstrations

Beyond direct mission support, the Experimental Fabrication Branch actively participates in Science, Technology, Engineering, and Mathematics (STEM) engagement initiatives. Technicians deploy mobile fabrication equipment to local robotics competitions, where they repair student-built robots and provide practical demonstrations of machining and welding techniques.

AirPro News analysis

We view the work at the Experimental Fabrication Branch as a critical bridge between conceptual engineering and practical flight testing. The development of the AIRVUE dataset is particularly relevant for the emerging Advanced Air Mobility (AAM) sector. As electric vertical takeoff and landing (eVTOL) manufacturers push toward autonomous operations, the availability of real-world, NASA-validated flight scenario data will likely accelerate software training and regulatory certification processes. By maintaining in-house rapid prototyping capabilities, the agency ensures that hardware limitations do not bottleneck software and aerodynamic innovations.

Sources: National Aeronautics and Space Administration (NASA)

Photo Credit: NASA

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Sustainable Aviation

NGO Coalition Pushes EU to End Aviation ETS Exemption

The SASHA Coalition urges the EU to end its ETS exemption for international flights ahead of the July 2026 legislative review.

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A coalition of environmental and industry non-governmental organizations is urging the European Commission to end the European Union Emissions Trading System exemption for international flights, a move proponents estimate could generate €130 billion in carbon market revenues between 2027 and 2035.

In a campaign coordinated by the SASHA Coalition, groups including Opportunity Green, Transport & Environment, and Carbon Market Watch are targeting the upcoming legislative revision of the European Union Emissions Trading System (EU ETS) scheduled for July 2026. The coalition argues that integrating extra-EEA flights into the carbon pricing mechanism is necessary to fund clean aviation technologies, specifically electro-Sustainable Aviation Fuel (eSAF) and Direct Air Capture (DAC) infrastructure.

The financial and environmental cost of the exemption

The European Union initially included aviation in the ETS on January 1, 2012, but introduced a stop-the-clock mechanism exempting extra-EEA flights following international pressure. According to a policy briefing from the SASHA Coalition, this exemption left an estimated 1.1 billion tonnes of carbon dioxide emissions unregulated between 2012 and 2023. The coalition calculates this resulted in €26 billion in uncollected carbon market revenues during that period.

If the exemption is maintained after its scheduled expiration in 2027, the coalition projects that 1.3 billion tonnes of carbon dioxide emissions will go unregulated through 2035. A full-scope ETS could generate an estimated €14 billion in annual revenue for European Union member states by 2030.

Industry perspectives on carbon pricing and CORSIA

The debate centers on the effectiveness of the United Nations Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA). The European Commission is required to assess by mid-2026 whether CORSIA delivers sufficient environmental ambition. Environmental groups argue the UN scheme is structurally unfit because it relies on offsetting rather than absolute emissions reduction and targets only emissions above a high baseline. Conversely, Airlines and industry groups have historically opposed extending the EU ETS to international flights, citing concerns over market distortions, potential violations of international law, and competitive disadvantages for European hubs.

Clean technology providers argue that a strong regulatory framework is required to drive investment. During a June 9, 2026 roundtable event at the European Parliament convened by the SASHA Coalition, NEG8 Carbon Head of Business Development Dr. David Mulrooney emphasized the necessity of the ETS for commercial strategy.

“To answer your question directly: the EU ETS is foundational to our commercial strategy. NEG8 supplies atmospheric CO2 capture. The stronger and more consistent the carbon price signal, the stronger the investment case for the infrastructure we sell into. ETS is not a policy backdrop for us. It is the market mechanism our business is built on,” Mulrooney stated.

Mulrooney advocated for directing ETS revenue into DAC and eSAF to drive down costs, similar to historical cost curves for solar power and batteries. Member of the European Parliament Cynthia Ní Mhurchú also spoke at the event, noting that regulatory certainty is critical for future planning.

AirPro News analysis

The July 2026 review of the EU ETS represents a critical juncture for European aviation policy. We observe that the European Commission is caught between two competing pressures: the mandate to meet aggressive decarbonization targets and the risk of triggering international trade disputes if it unilaterally prices emissions on extra-EEA flights. The SASHA Coalition focus on revenue generation for eSAF and DAC is a strategic pivot, framing the ETS not just as a punitive tax but as a necessary funding mechanism for the aviation industry transition. Overcoming airline opposition to overlapping carbon pricing regimes will require the Commission to clearly articulate how the EU ETS and CORSIA can coexist without creating prohibitive administrative and financial burdens for operators.

Sources: SASHA Coalition

Photo Credit: SASHA Coalition

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