FAA seeks ownership stake in Air Space Intelligence, whose contract is worth up to $875.9 million

The FAA is seeking an ownership stake in Air Space Intelligence, the company developing an AI-supported system for managing air traffic, according to AeroTime, which cited internal agency documents. The proposed arrangement would give the government a financial interest in a contractor already awarded FAA work worth up to $875.9 million.

AeroTime reported that preliminary terms for the offer expire at the end of 2026. The report does not describe the proposed stake's size or provide further terms. The FAA awarded Air Space Intelligence a contract in June 2026 to develop two connected systems for air traffic management.

One of those systems, SMART, entered limited use around Washington, DC, on September 21, 2026, according to AeroTime. The Transportation Department says SMART draws on about 200 data streams, including weather, flight paths, traffic flow and controller staffing.

The department says the information is meant to help FAA personnel anticipate problems and make decisions related to traffic bottlenecks. The proposed equity arrangement concerns a contractor whose system is already being used on a limited basis, while lawmakers have called for a pause at several airports.

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 urged a halt to SMART's use at Reagan National, Dulles International and Baltimore/Washington International airports.

AeroTime's account does not state whether the FAA accepted the lawmakers' request or explain how the proposed government stake would be structured. It reports that the preliminary offer terms remain open until the end of 2026.

The agency is thus considering an ownership interest while the contractor's system is in limited operation and lawmakers have requested a pause at named airports. The central next steps documented in the account are whether the FAA proceeds with the proposed stake and whether it pauses SMART's use at the three airports named in the lawmakers' letter.

The Transportation Department's description of the system and the contract value provide the reported scope of the technology and the existing FAA work; the proposed offer's specific financial terms remain unspecified in AeroTime's account.