The US Federal Aviation Administration is pursuing an ownership interest in Boston-based Air Space Intelligence, which is developing AI-supported air traffic-management systems for the agency. The FAA awarded the private company a contract worth up to $875.9 million over 12 years in June for its Strategic Management of Airspace, Routes and Trajectories platform and a related system for the agency’s air-traffic-control command centre.
The FAA has prepared a term sheet covering a potential equity stake and is negotiating a warrant that would give the US government the right to buy shares at a predetermined price. The term sheet is due to expire at the end of 2026, but no final agreement has been reached. The size of any stake and the timetable for completing a transaction have not been disclosed.
The arrangement would be an unusual step for the FAA and the first known instance of the agency seeking an ownership position in a private contractor. It comes as the agency accelerates modernisation of the National Airspace System and faces scrutiny over the cost, schedule and implementation of AI-based systems.
SMART analyses operational data, including weather and flight schedules, to predict congestion and support traffic management. Its initial 90-day evaluation in the Washington, DC, area covers Ronald Reagan Washington National, Washington Dulles International and Baltimore/Washington International airports.
Democratic lawmakers have urged the FAA to pause the evaluation until the agency provides more information on safety testing, controller training and post-deployment oversight. The FAA and Air Space Intelligence did not immediately comment on the proposed ownership arrangement.