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US awards radar contracts to RTX, Indra in air traffic overhaul

Published by Global Banking & Finance Review

Posted on January 5, 2026

2 min read

· Last updated: January 20, 2026

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Jan 5 (Reuters) - The United States has awarded contracts for new air traffic control radar systems to RTX Corp and Spanish firm Indra Sistemas, Transportation Secretary Sean Duffy said in a statement

US Awards Radar Contracts to RTX and Indra for Air Traffic Overhaul

Jan 5 (Reuters) - The United States awarded contracts on Monday to RTX Corp and Spain's Indra Sistemas to supply new radars for its aging air traffic control system, a major step in a multi-billion-dollar overhaul, Transportation Secretary Sean Duffy said in a statement.

The awards are a key part of a $12.5 billion plan Congress approved last year to overhaul the nation's air traffic control system. The effort follows decades of complaints over airport congestion and technology failures and has gained urgency after a recent series of high-profile safety incidents.

Duffy's statement did not say how much the contracts were worth, but U.S. Federal Aviation Administration head Bryan Bedford said last month the agency is committing $6 billion by year-end on air traffic control telecom infrastructure and radar surveillance systems.

The agency has said another $20 billion will be needed to complete the full air traffic control system upgrade.

"While our air travel system is the safest in the world, most of our radars date back to the 1980s. It's unacceptable," Duffy said.

The Federal Aviation Administration's air traffic control network's woes have been years in the making, but a rush of high-profile mishaps, near-misses and a catastrophic crash last January between a U.S. Army helicopter and regional American Airlines jet that killed 67 has spiked public alarm.

The contracts will contribute to replacing up to 612 radars by June 2028 with modern, commercially available surveillance radars. Replacements are scheduled to begin this quarter and will prioritize high-traffic areas, the statement said.

The project will install replacement surface radars at 44 airports, acquire 27,625 radios and add 110 weather stations in Alaska.

A 2023 report said the Federal Aviation Administration communications system had been outdated for years and the agency could no longer get spare parts for many systems.

In November, the FAA said it has picked Peraton, a national security company owned by Veritas Capital, as project manager to overhaul the aging U.S. air traffic control system.

(Reporting by David Ljunggren; Editing by Lisa Shumaker)

Key Takeaways

  • US awards radar contracts to RTX and Indra.
  • Part of a $12.5 billion air traffic control overhaul.
  • Contracts aim to replace 612 radars by 2028.
  • FAA commits $6 billion by year-end for upgrades.
  • Project includes new radars, radios, and weather stations.

Frequently Asked Questions

What is air traffic control?
Air traffic control is a service that manages the safe and orderly flow of air traffic in the skies and at airports, ensuring that aircraft are safely separated and directed.
What are radar systems?
Radar systems use radio waves to detect and locate objects, such as aircraft, by bouncing signals off them and measuring the time it takes for the signals to return.
What is the Federal Aviation Administration (FAA)?
The FAA is the national aviation authority of the United States, responsible for regulating civil aviation, overseeing air traffic control, and ensuring the safety of air travel.
What is a telecommunications infrastructure?
Telecommunications infrastructure refers to the physical and organizational structures needed for the operation of telecommunication services, including networks, hardware, and software.
What is a modernization plan?
A modernization plan outlines the strategies and actions needed to update and improve existing systems, processes, or technologies to enhance efficiency and effectiveness.

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