Report: FAA Seeks Ownership Stake in ATC Contractor ASI

Agency considering unprecedented measures as it works to modernize nation’s air traffic control system.

Jack Daleo

Friday, October 16, 2026 at 11:46 AM ET

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Edited By:

Travis Tingle

U.S. Transportation Secretary Sean Duffy (left) and FAA Administrator Bryan Bedford introduce the SMART air traffic management system at a new center in Washington, D.C. [Credit: U.S. Department of Transportation]

Key Takeaways:

The FAA is pursuing an unprecedented equity stake in Air Space Intelligence (ASI), the company developing the critical AI-powered SMART air traffic management platform, as part of its multibillion-dollar modernization of the national air traffic control system.
The SMART system, designed for predictive airspace management, has faced controversy during its initial rollout, with lawmakers urging a pause and air traffic controllers reporting a lack of involvement in its design or implementation.
This unusual move for an ownership stake is driven by the FAA's desire for greater control over a key contractor amidst the rising costs, time pressures, and alleged potential delays of the extensive ATC modernization project.

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The FAA is reportedly pursuing an unprecedented move to support its multibillion-dollar modernization of the nation’s aging air traffic control system.

According to Politico, which cited an internal FAA document, the agency has a term sheet for an equity stake in Air Space Intelligence (ASI) and is negotiating to acquire a warrant that would give it the right to buy the company’s stock. The agency in June awarded ASI a 12-year contract worth up to $875 million to develop the AI-powered Strategic Management of Airspace, Routes and Trajectories (SMART) air traffic management platform.