BAE Systems has secured AIMS certification for its AN/APX-127(V)1 Combined Interrogator Transponder, clearing the modernized Identification Friend or Foe system for operational use on the U.S. Air Force F-16 Fighting Falcon.

Announced in a company press release on September 29, 2026, the certification validates the system’s compliance with current United States and NATO interoperability standards. The approval specifically covers the encrypted Mode 5 protocol required to distinguish allied aircraft from potential threats in contested airspace.

System architecture and production

The AN/APX-127(V)1 Combined Interrogator Transponder (CIT) consolidates interrogator and transponder functions into a single unit designed for highly maneuverable tactical aircraft. BAE Systems engineered the unit with an open-system architecture, allowing for future software upgrades without requiring hardware modifications. The manufacturer maintained the same form factor as its legacy systems, enabling the new CIT to serve as a drop-in replacement for the AN/APX-113(V), AN/APX-125(V), and AN/APX-126(V) systems currently operating on multiple domestic and international platforms.

Seth Guanu, Combat Identification Products program area director at BAE Systems, stated the company is investing in the next generation of Identification Friend or Foe (IFF) technology to support customer missions.

“Our multi-domain systems are designed for high-performance; easily upgradeable; and meet size, weight, and power objectives for existing and emerging platforms. This solution provides added security and real-time information pilots need in a variety of threat environments.”

Manufacturing and development work for the AN/APX-127(V)1 takes place at BAE Systems facilities in Greenlawn, New York, and Austin, Texas. The company expects to begin delivering the first 90-unit production lot in 2026.

The Mode 5 transition and AIMS certification

The AIMS certification is a mandatory interoperability standard for IFF solutions used by the U.S. military and allied forces. The certification is overseen by the U.S. Department of Defense (DoD) AIMS program office, though the BAE Systems press release referred to the certifying body using the historical designation “Department of War.”

A primary driver for the AN/APX-127(V)1 upgrade is the integration of Mode 5 capabilities. Mode 5 is the current encrypted NATO standard, which replaces the older Mode 4 protocol. The updated standard ensures secure identification of friendly aircraft to prevent friendly fire incidents during complex multi-domain operations.

The AIMS Mark XIIB IFF certified system also supports Mode S and includes additional receive channels for the passive acquisition of Mode 5 Level 2 and Automatic Dependent Surveillance-Broadcast In (ADS-B In) data.

Eighty years of IFF development and international expansion

BAE Systems has over 80 years of experience developing IFF technology. Across all military service branches, the company has delivered more than 1,500 interrogators, 6,000 combined interrogator transponder systems, and 16,000 transponders for applications including air defense, weapon systems, air traffic control, and range instrumentation.

On December 15, 2025, Korea Aerospace Industries (KAI) awarded BAE Systems an $11 million contract to integrate the same CIT system onto the KF-21 Boramae tactical aircraft. This parallel integration demonstrates the system’s viability on emerging platforms alongside legacy fighters like the F-16.

AirPro News analysis

The transition to Mode 5 represents a critical modernization hurdle for global Air Forces operating legacy combat aircraft. By designing the AN/APX-127(V)1 as a drop-in replacement for the widely used AN/APX-113(V) series, BAE Systems provides operators with a streamlined path to meet the NATO Mode 5 mandate without requiring extensive hardware modifications or prolonged aircraft downtime.

Securing AIMS certification for the F-16 Fighting Falcon opens a massive potential upgrade market, given the thousands of F-16s still in active service globally. The concurrent integration on the clean-sheet KF-21 Boramae indicates the architecture is flexible enough to bridge the gap between fourth-generation upgrades and next-generation fighter development, positioning BAE Systems to capture both retrofit and forward-fit IFF contracts.

Avio USA broke ground on a 900,000-square-foot solid rocket motor manufacturing facility in Pittsylvania County, Virginia, on September 29, 2026, introducing a new independent supplier to the consolidated U.S. defense industrial base.

The project is supported by major defense contractors Lockheed Martin Corporation and Raytheon. According to a company press release, the facility represents an investment of more than $500 million and is expected to create roughly 1,500 technical jobs in the region, adding critical domestic capacity for tactical missile and munitions programs.

Expanding domestic munitions capacity

Avio USA, a subsidiary of Italy-based aerospace company Avio S.p.A., held the groundbreaking ceremony at the Southern Virginia Multimodal Park in Hurt. The event drew representatives from the state government and the defense industry, highlighting the strategic importance of the new site.

The facility is designed to operate as an independent merchant supplier. This model allows Avio USA to provide solid rocket motors to multiple defense primes rather than operating as a captive supplier to a single manufacturer.

“Avio USA is building more than a manufacturing facility in Virginia. We are building an American company and workforce that can bring Avio’s proven propulsion expertise to the U.S. defense market,” said James Syring, CEO of Avio USA. “Our goal is to be an independent, open-source merchant supplier, able to support multiple customers and programs and provide major defense primes with an additional source for this critical capability.”

Executives from both Lockheed Martin and Raytheon attended the ceremony, underscoring the industry demand for the new plant. Tim Cahill, President of Lockheed Martin Missiles and Fire Control, noted that the facility is a significant step toward a more robust supply chain. Bob Butz, Senior Vice President of Operations, Supply Chain and Quality at Raytheon, stated that the groundbreaking expands national manufacturing capacity for solid rocket motors.

State incentives and construction timeline

The September 29, 2026, groundbreaking follows a site selection process that concluded on December 11, 2025. To secure the project, the Virginia General Assembly and the Major Employment and Investment Project (MEI) Commission approved a special appropriation incentive package of up to $97.7 million on February 23, 2026.

The state incentives were based on Avio USA committing to invest more than $500 million and create over 1,000 jobs, though subsequent company communications project the creation of roughly 1,500 high-quality technical roles.

Virginia Governor Abigail Spanberger praised the development, stating that the investment will advance critical manufacturing capabilities and reinforce the position of the state as a premier destination for aerospace and defense industry growth.

According to financial news reporting, construction of the Hurt facility is expected to be completed in late 2028. The commencement of solid rocket motor production is scheduled for early 2029.

Breaking the solid rocket motor duopoly

The U.S. solid rocket motor market has historically been highly consolidated, leading to supply chain bottlenecks as demand for tactical munitions has increased. The Pentagon and major defense contractors have actively pushed for new entrants to increase production capacity, foster competition, and build resilience into the supply chain.

Avio S.p.A., founded in Rome in 1912, specializes in the design and manufacturing of space launchers, including the Vega C, and tactical missiles. The company employs over 1,500 people across Italy, France, French Guiana, and the United States. To serve the U.S. defense market and handle classified materials, Avio USA operates under a Defense Counterintelligence and Security Agency (DCSA) Special Security Agreement.

AirPro News analysis

The entry of Avio USA into the domestic solid rocket motor market addresses one of the most acute vulnerabilities in the U.S. defense supply chain. For years, the sector has been dominated by just two primary suppliers, creating a fragile ecosystem that struggled to scale up production in response to recent global conflicts and the resulting depletion of U.S. munitions stockpiles. By establishing an independent, open-source merchant facility, Avio USA provides prime contractors like Lockheed Martin and Raytheon with a neutral alternative. We view this development as a direct validation of Department of Defense initiatives aimed at diversifying the industrial base, which will likely ease production bottlenecks for critical tactical missile programs by the end of the decade.

The U.S. Navy has awarded The Boeing Company a contract valued at more than $20 billion for the full-scale development phase of the F/A-XX Strike Fighter, cementing the manufacturer as the sole provider of America’s sixth-generation combat aircraft.

Announced on September 29, 2026, by the U.S. Department of War, the award advances the strike fighter component of the Navy’s Next Generation Air Dominance (NGAD) program. The F/A-XX is slated to begin augmenting and eventually replacing the service’s legacy fleet of Boeing F/A-18E/F Super Hornets and EA-18G Growlers in the 2030s.

Advancing naval air superiority

The newly announced contract procures multiple test aircraft for ground, airworthiness, systems, and weapons integration testing. The F/A-XX is designed as a carrier-based fighter featuring extended range, an open mission systems architecture, and interoperability with both manned and unmanned platforms, including Collaborative Combat Aircraft (CCA).

Department of War officials emphasized the strategic necessity of the program amid evolving global threats.

“The F/A-XX platform represents a crucial, non-negotiable investment in America’s national security and long-term air combat capabilities. We are joining forces with Boeing to field these capabilities rapidly, ensuring our warfighters possess the lethal and highly networked systems required to deter aggression, project undisputed power, and secure absolute air superiority.”

The statement from Michael P. Duffey, Under Secretary of War for Acquisition and Sustainment, was echoed by Acting Secretary of the Navy Hung Cao, who described the aircraft as a generational leap in air superiority that will provide naval aviators with unparalleled combat capabilities.

Consolidating the sixth-generation industrial base

The F/A-XX competition in its late stages was primarily a contest between Boeing and Northrop Grumman. Boeing’s victory fundamentally reshapes the defense aerospace market. Combined with the March 2025 contract to develop the U.S. Air Force’s next-generation fighter, the F-47, Boeing now controls both of the Pentagon’s premier future fighter programs.

As reported by Breaking Defense, the award effectively excludes competitors Northrop Grumman and Lockheed Martin from the sixth-generation fighter market. Lockheed Martin will continue to produce the fifth-generation F-35C Joint Strike Fighter for the Navy, but the future of carrier-based air dominance now rests entirely with Boeing.

Steve Parker, President and Chief Executive Officer of Boeing Defense, Space & Security, stated that the company is prepared to execute both massive defense programs simultaneously.

“Delivering two advanced fighters in parallel was always our plan, and we invested accordingly,” Parker said in a corporate release. “We are ready and able to build multiple concurrent future combat aircraft franchise programs.”

To support this production, Boeing Defense, Space & Security is constructing a secure manufacturing facility in St. Louis, Missouri. The company noted that the facility will function as part of an all-digital aerospace design and manufacturing system uniquely suited to build multiple products with next-generation capabilities.

Congressional funding and operational timeline

The contract award follows a significant injection of capital from lawmakers. Congress appropriated $972 million for F/A-XX research and development in the fiscal 2026 defense appropriations bill. According to Aviation Week, this funding level represented a substantial increase over the initial $74 million requested by the Defense Department, a change driven by congressional frustration over slow program progress and repeated contract extensions.

With full-scale development now funded and contracted, Boeing and the Navy are targeting the 2030s for the initial fielding of the F/A-XX, at which point the aircraft will begin to take over the carrier strike group roles currently fulfilled by the F/A-18E/F Super Hornet and the electronic warfare-focused EA-18G Growler.

AirPro News analysis

Boeing’s sweep of the F-47 and F/A-XX programs represents a historic consolidation of the U.S. tactical aircraft industrial base. Just a few years ago, Boeing faced the prospect of its fighter production lines going cold as legacy F/A-18 and F-15EX orders wound down. Now, the company holds an undisputed monopoly on the next generation of air dominance.

For competitors Lockheed Martin and Northrop Grumman, the loss of the F/A-XX restricts their future tactical aviation portfolios to legacy fifth-generation production and unmanned systems. This outcome fundamentally reshapes the aerospace defense market for the next three decades, placing the burden of delivering the military’s most complex and expensive future combat systems squarely on Boeing’s St. Louis facilities.