RTX and Indra Win U.S. Air Traffic Control Radar Contracts

• Up to 612 outdated radars will be replaced by June 2028, with rollout starting this quarter in high-traffic areas
• Most current U.S. air traffic control radars date from the 1980s, and a 2023 report noted the FAA could no longer obtain spare parts for many systems
• Congress authorized funding last year to overhaul the air traffic control system, though specific contract values were not revealed

Summary

Key Development: The U.S. government has awarded air traffic control radar contracts to RTX Corp and Spain's Indra Sistemas, Transportation Secretary Sean Duffy announced on January 5. Contract values were not disclosed.

Project Scope: The initiative aims to replace up to 612 aging radars by June 2028 with modern, commercially available surveillance systems. Replacements will begin this quarter, prioritizing high-traffic areas first.

Background: Secretary Duffy emphasized the urgent need for upgrades, noting that most current U.S. air traffic control radars date back to the 1980s. A 2023 report highlighted that the Federal Aviation Administration's communications infrastructure has been severely outdated, with spare parts no longer available for many systems. Congress authorized funding last year to overhaul the aging infrastructure.

Companies Involved:

• RTX Corp: Major U.S. defense and aerospace contractor
• Indra Sistemas: Spanish technology and defense company

Market Implications: This contract represents a significant modernization effort for U.S. aviation infrastructure, creating substantial revenue opportunities for both contractors. The accelerated timeline (completion by June 2028) suggests urgency in addressing critical infrastructure gaps. For RTX and Indra, these contracts strengthen their positions in the aviation technology sector and could lead to additional follow-on work or international opportunities as other countries face similar radar modernization needs.

The project underscores growing government commitment to infrastructure upgrades and aviation safety, potentially benefiting aerospace and defense sector suppliers.