FAA seeks ownership stake in company behind AI air traffic system

The US Federal Aviation Administration (FAA) is seeking an ownership stake in Air Space Intelligence, the company developing a new AI-supported air traffic management system, according to internal agency documents.

The proposed arrangement would give the government a financial interest in a contractor already awarded work worth up to $875.9 million. It comes as US lawmakers press the FAA to halt the system’s initial rollout until the agency answers questions about safety testing, training and oversight.

Politico first reported on the existence of the internal documents, which say FAA has drawn up preliminary terms for an investment and is negotiating a deal that would give the government the right to buy shares at a set price. The preliminary terms of the offer expire at the end of 2026.

It remains unclear whether a final agreement is close. The FAA told Politico it could not immediately comment, while Air Space Intelligence did not respond to the outlet’s request.

The Boston-based tech company won the FAA contract in June 2026 to develop two connected systems for managing air traffic.

One, called Flow Management Data and Services, is intended to help the FAA’s Air Traffic Control System Command Center balance flight demand with available capacity. The other, Strategic Management of Airspace, Routes and Trajectories, or SMART, is designed to spot congestion and recommend changes before aircraft depart.

The FAA began using SMART on a limited basis around Washington, DC, on September 21, 2026. The Transportation Department says it combines about 200 data streams, including weather, flight paths, traffic flow and controller staffing, to help FAA personnel anticipate problems and make decisions related to traffic bottlenecks.

FAA staff review SMART’s recommendations, and local air traffic control managers can accept or reject its scheduling suggestions.

The rollout has drawn questions from US lawmakers concerned about how the system was tested and how much preparation controllers received.

In an October 9, 2026, letter to Transportation Secretary Sean Duffy and FAA Administrator Bryan Bedford, lawmakers led by Rep. April McClain Delaney of Maryland, called for a pause in its use at Reagan National (DCA), Dulles International (IAD) and Baltimore/Washington International (BWI) airports.

They asked what safety evaluations had been completed, how the system would perform during severe weather or equipment outages, and what training personnel received before it went into use.

The lawmakers also sought details about the initial 90-day evaluation and the standards the FAA would require before expanding the system nationwide.

“I’m calling on the FAA to pause this rollout, show us the safety testing, and explain who is accountable when something goes wrong,” McClain Delaney said.

The proposed investment would expand the Trump administration’s desire to take ownership stakes in private companies into the realm of air traffic management.

The government agreed to acquire a 9.9% stake in Intel in 2025, but an ownership role for the FAA in one of its own contractors would be an unusual step for the aviation agency.The post FAA seeks ownership stake in company behind AI air traffic system appeared first on AeroTime.

Go to Source