US Federal News Bureau

FAA Awards $875 Mn Contract for AI-Enabled Air Traffic Management Platforms

Written by: Pritam Bordoloi, Senior Reporter, CDO Magazine

Updated 5:14 PM EDT, July 9, 2026

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The Federal Aviation Administration (FAA) has awarded Air Space Intelligence (ASI) an $875 million, 12-year contract to develop and deploy AI-enabled air traffic management platforms designed to reduce delays, improve efficiency, and modernize operations across the National Airspace System.

At the center of the initiative is the Strategic Management of Airspace, Routes, and Trajectories (SMART) platform, an artificial intelligence-powered system that will analyze airline schedules, weather conditions, airport capacity, airspace constraints, and operational data to predict traffic flows and identify potential conflicts before they occur. SMART will operate within the FAA’s new Flow Management Data and Services (FDMS) platform, which will serve as the agency’s centralized data backbone.

“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,” Transportation Secretary Sean Duffy said in a press release.

The AI system will continuously update forecasts and planning recommendations as conditions change, enabling more proactive management of air traffic. Initial operations using SMART are expected to begin in fall 2026.

The FAA said the technology will replace fragmented operational processes that often rely on multiple screens and spreadsheets, giving controllers and planners a unified, AI-driven view of airspace conditions. The effort is part of the agency’s broader modernization strategy aimed at creating a more predictive, data-driven air traffic management system.

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