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FAA Faces Turmoil as Trump Administration Pushes for Overhaul

Global Avionics Round-Up from Aircraft Value News (AVN)

Federal Aviation Administration logo.

As air traffic in the United States continues to grow, the Federal Aviation Administration (FAA) is facing increasing pressure to modernize. With the second Trump administration now underway, newly appointed Secretary of Transportation Sean Duffy has placed FAA “reform” near the top of his agenda.

In a series of early policy moves, the administration has signaled its intent to reshape the agency with a focus on privatization, deregulation, and cost-cutting. Supporters say these efforts are aimed at making the FAA more efficient by reducing bureaucracy and introducing private-sector discipline. However, critics warn that this approach may misdiagnose the FAA’s challenges and risk undermining core functions tied directly to public safety.

At the center of the administration’s plan is a proposal to separate Air Traffic Control (ATC) from the FAA and transfer those operations to a new nonprofit entity. Advocates of the model argue that it could insulate the system from political interference and give it more operational flexibility. The proposal draws inspiration from NAV CANADA, a privatized ATC system that has operated independently from government oversight in Canada since the 1990s.

But experts caution that key differences between the two systems make comparisons difficult. The U.S. airspace is among the busiest and most complex in the world, handling more than 45,000 flights per day across a densely trafficked network of commercial, cargo, general aviation, and military operations. Canada, by contrast, oversees a much larger volume of airspace, but with significantly less congestion.

A major concern among aviation stakeholders is that structural reform could distract from more urgent needs within the system. The FAA’s modernization program, known as NextGen, has faced delays and uneven implementation since its launch nearly two decades ago.

Designed to shift the U.S. from radar-based tracking to a satellite-enabled system, NextGen promises increased efficiency, reduced delays, and enhanced safety. Yet progress has been slow, with many regions still operating on outdated technology.

A distraction from the real issues?

Some industry observers worry that the administration’s emphasis on governance, i.e., who owns and manages ATC, is diverting attention from the tools that actually move aircraft through airspace.

Experts question the need to reinvent the ownership structure. They argue that what’s needed is a system that works in real time and can handle modern traffic loads.

Labor concerns are also surfacing. The FAA is already grappling with a long-standing shortage of certified air traffic controllers, many of whom are approaching retirement age.

Recent signals from the administration about potential changes to labor protections under a privatized system have raised alarms among union leaders and workforce advocates. They argue that uncertainty around compensation, benefits, and job security could further destabilize the workforce and make it harder to attract new talent.

There’s no margin for error in this field.  Controllers are under enormous pressure every day, and experience matters. You can’t replace that overnight, and you can’t outsource it without consequences.

The long-term implications of such changes could extend beyond day-to-day operations. Aviation analysts point out that the U.S. risks falling behind in global aviation leadership if reforms lead to a fragmented ATC system, delays in tech adoption, or reduced performance standards.

Other regions, including the European Union and China, are investing heavily in artificial intelligence (AI)-enabled routing, digital towers, and automated conflict detection, all aimed at making their airspace safer and more efficient.

While the administration has framed its reforms as a way to reduce political interference at the FAA, some policy experts contend that privatization could introduce a different set of pressures that are driven by financial constraints, corporate influence, and market priorities.

Turning over critical national infrastructure to a nonprofit or private operator raises new questions about accountability, funding stability, and regulatory oversight.

The FAA has long played a central role in ensuring the safety and reliability of U.S. air travel, while also serving as a model for aviation authorities around the world. Supporters of a more incremental approach argue that the agency’s problems stem not from excess bureaucracy, but from decades of inconsistent investment and shifting political priorities.

As the administration moves forward with its FAA reform agenda, the debate continues over how best to achieve modernization without compromising the core mission of public safety. Whether privatization will deliver the promised efficiencies, or create new risks, remains a pivotal question for the future of American aviation.

This article originally appeared in our partner publication Aircraft Value News.

John Persinos is the editor-in-chief of Aircraft Value News.

The post FAA Faces Turmoil as Trump Administration Pushes for Overhaul appeared first on Avionics International.

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After FTUAS Cut, Army Looks To Field Brigade UAS In FY ‘26 To Replace Shadow Drones

The Textron Aerosonde 4.8 HQ during the FTUAS Flight Demonstration. (Photo: Army PEO Aviation)

After cancelling the Future Tactical UAS (FTUAS) program, the Army plans to begin procuring initial brigade-level  unmanned aircraft system (UAS) capabilities in fiscal year 2026 to address its requirement to field a Shadow drone replacement.

Col. Nick Ryan, director of the Army Capability Manager for Unmanned Aircraft Systems, told reporters on August 12 that both Textron Systems and Griffon Aerospace, the two competitors for the axed FTUAS effort, were invited to compete for the brigade UAS directed requirement opportunity. 

“The requirement for a brigade to have that type of capability for an unmanned aircraft system is still valid and still exists,” Ryan said. “The money is still there. We are now leaning into the Brigade UAS directed requirement that existed in parallel to [FTUAS]. And we’ve already done a competition and a review of other capabilities out there that meet that brigade-level requirement.”

FTUAS was the Army’s effort to find a replacement for the legacy Shadow drone, with the Army having selected Textron Systems’ Aerosonde Mk. 4.8 Hybrid Quad UAS and Griffon Aerospace’s Valiant for a competitive prototyping effort to inform a production award that had been planned for late fiscal year 2025.

The Army had said it was interested in a “vertical takeoff and landing, runway-independent, reduced acoustic signature aircraft that can be transported organically while providing commanders with ‘on the move’ reconnaissance, surveillance, and target acquisition capabilities.

Along with ending the FTUAS development effort, the Army’s new transformation plan has included cutting procurement of Joint Light Tactical Vehicles, Humvees, AH-64D Apaches, Gray Eagle UAS and the M10 Booker and development of the Improved Turbine Engine Program and Robotic Combat Vehicle.

“The appetite of the senior leaders is, basically, we don’t want to follow the old acquisition process and wait another year, two years or three years to start fielding this out to units, because that’s what FTUAS was under, the kind of old acquisition process. So they just canceled the program,” Ryan said.

The Army first detailed the brigade UAS directed requirement last December, with an interest in assessing solutions that could serve as a Shadow gap-filler until the FTUAS program of record was ready for fielding.

Ryan noted the brigade-level UAS is likely to be a Group 3 capability and that the Army was interested in more commercial off-the-shelf solutions. 

The Army is now waiting on final funding for the brigade UAS directed requirement to be approved and received before announcing which vendors have been selected to provide initial capabilities in FY ‘26, Ryan added.

“That will be kind of a tranche one capability. But then we are already rapidly planning to iterate,” he said. 

A sources sought notice released last December detailed an interest in interim UAS capabilities that are “available, production ready, and cost-effective.”

“The system’s mission characteristics include a field-level reconfigurable, modular payload capability to execute the primary mission of Reconnaissance, Surveillance and Target Acquisition, a secondary mission of communications relay and an enhanced mission set of lethal payload delivery and electronic support,” the Army wrote in the sources sought notice.

The House’s recently-passed FY ‘26 defense appropriations bill rebuked the Army’s proposed FTUAS cut and included $185.5 million to continue the development effort. 

A version of this story originally appeared in affiliate publication Defense Daily.

The post After FTUAS Cut, Army Looks To Field Brigade UAS In FY ‘26 To Replace Shadow Drones appeared first on Avionics International.

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Sikorsky’s Nabs $43 Million Black Hawk Upgrade Deal For ‘Digital Backbone,’ Launched Effects Work

An Area-I Air-Launched, Tube-Integrated, Unmanned System, or ALTIUS, is launched from a UH-60 Black Hawk at Yuma Proving Ground, Ariz., March 4 where the U.S. Army Combat Capabilities Development Command Aviation & Missile Center led a demonstration that highlighted the forward air launch of the ALTIUS. (Courtesy photo provided by Yuma Proving Ground)

The Army has awarded Sikorsky a $43 million deal for an array of modernization engineering efforts for the UH-60 Black Hawk helicopter, to include airframe enhancements, building out a “digital backbone” capability and work to integrate with launched effects.

Sikorsky described the contract as an initial award to move out on the modernization efforts, which follows the Army’s commitment to focus on upgrades for its UH-60 fleet following its aviation restructure last year.

“This initial work on airframe enhancements, main fuel and digital backbone set a strong foundation for further rapid capability updates to Black Hawk. With a more powerful engine, airframe enhancements and a main fuel upgrade, the aircraft will carry more payload at greater range, and future upgrades to flight controls to include autonomy and AI features that will assist pilots in tough conditions increasing mission safety and effectiveness,” Sikorsky said in a statement on August 20.

A Sikorsky spokesperson told sister publication Defense Daily the outlined upgrades will be retrofittable and available for new-build aircraft and that the company expects follow-on awards to “bring these capabilities into production and rapidly fielded to ensure the Black Hawk has the most current technologies to outpace our adversaries and support our soldiers for decades to come.”

When the Army announced its major aviation restructure in February 2024, which included canceling development of the Future Attack Reconnaissance Aircraft, it detailed plans to award another multi-year contract for UH-60M Black Hawks with the newly freed-up resources and to prioritize modernization upgrades as it looks to continue flying the platform for decades.

“We continue to partner with the Army and our suppliers on the path forward to modernize the Black Hawk for operations into the 2070s,” the Sikorsky spokesperson said.

The Army is moving ahead on the Future Long Range Assault Aircraft, which will eventually replace a sizeable portion of the Black Hawk fleet, having selected Bell’s V-280 Valor tiltrotor aircraft over a Sikorsky and Boeing team’s Defiant X coaxial rigid rotor helicopter offering. 

The Army and Sikorsky in June 2022 signed the latest multi-year UH-60M Black Hawk contract, awarding the company a five-year deal worth $2.3 billion for delivery of 120 H-60M helicopters.

With options, the Army noted the 10th multi-year deal for Black Hawks could potentially be worth $4.4 billion and cover more than 250 helicopters, to include aircraft for FMS customers.

“Sikorsky is ready to implement new technologies that will strengthen the combat-proven Black Hawk helicopter and give U.S. Army soldiers greater advantage in areas like the Indo-Pacific,” Hamid Salim, Sikorsky’s vice president of Army and Air Force systems, said in a statement. “Integrating launched effects into the Black Hawk will enhance its capabilities and provide a significant advantage. Modernization is reducing costs, increasing efficiency and improving the overall maintenance and sustainment for the aircraft.”

The modernization work award supports the Army’s “near-term priority” to bring launched effects onto Black Hawks, with Sikorsky adding it will deliver a “federated capability” to further integration work in 2026.

“The 2026 delivery is intended to put that demonstrated capability into operational users’ hands. We envision continuing to further develop the capability and fully integrating the solution, in subsequent deliveries,” the Sikorsky spokesperson told Defense Daily. 

Launched effects (LE) is the Army’s program to field new attritable autonomous air vehicles that can be launched from aircraft or ground platforms with a variety of payloads and mission system applications to provide a range of effects for reconnaissance, extended communications links and eventually lethal capabilities.

The Army recently released a solicitation notice for a new contracting vehicle to “rapidly procure” launched effects, as it aims to begin widely fielding capabilities in 2026.

Sikorsky has previously discussed how it sees the Black Hawk’s role with launched effects, and the Army has previously used the helicopters in early experimentation as it looked to inform its pursuit of the new attritable autonomous systems.

“That’s why we have zeroed in on what can the Black Hawk do to help, not do all of it, but certainly participate in some of it, and I think Launched Effects is a huge piece,” Jay Macklin,  Sikorsky’s business development director for Army and Air Force systems, told reporters last year. “What we’re trying to do is feed that Common Operating Picture…Every asset out there is a sensor so what can Black Hawk do to close that kill chain for the ground commander?”

For the model-based systems engineering portion of the modernization work, Sikorsky said it will focus on “developing a digital thread of the Black Hawk for collaborative and effective design, testing and maintenance of the aircraft.”

“The Black Hawk digital backbone effort, supporting a Modular Open System Approach, will involve the development of advanced systems and software to support the aircraft’s modernization. This digital backbone facilitates rapid capability insertion to quickly respond to future platform mission needs,” Sikorsky said. 

At a House Appropriations Defense Subcommittee hearing in May, both Army Secretary Dan Driscoll and Gen. Randy George, the service’s chief of staff, declined to offer a firm commitment on awarding another multi-year deal for more Black Hawks, and said they would have to get back to the committee with an answer on that decision.

“We are unwilling to make commitments that aren’t, in our opinion, in the best interests of soldiers and their lethality and keeping them safe if we deploy them anywhere in the world and to bring them home. So we can follow up with your office but right now we can’t answer that,” Driscoll said.

George said at the hearing he was “not aware” of any adjustments to previously discussed plans for the Black Hawk, reiterating that the Army intends to keep upgrading its fleet to the UH-60M model. 

“I see [that] Black Hawks are going to be with us for a while, but I do think we’re going to have to adapt what we’re doing. There just may be less Black Hawks,” George said.

A version of this story originally appeared in affiliate publication Defense Daily.

The post Sikorsky’s Nabs $43 Million Black Hawk Upgrade Deal For ‘Digital Backbone,’ Launched Effects Work appeared first on Avionics International.

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Merlin to Integrate Its Mission Autonomy Software Onto Northrop Grumman M437

Pictured is the Model 437 aircraft (Scaled Composites Photo)

Boston-based Merlin said on July 30 that it is to integrate its Merlin Pilot autonomy software for Northrop Grumman‘s Beacon testbed project using the Scaled Composites Model 437 (M437) aircraft.

Merlin said that it “will provide engineering integration for software-in-the-loop testing and flight test operations, contribute to test procedure and documentation development, participate in recurring planning sessions, and deploy on-site personnel for flight tests in Mojave, Calif.”

Northrop Grumman announced the “sixth generation” Beacon software development endeavor.

Flight demonstrations are planned for this year.

Northrop Grumman said on July 30 that the full list of the companies participating thus far in Beacon include Shield AI, Merlin, Applied Intuition, Autonodyne, Red 6, and SoarTech.

In June last year, Merlin said that it had signed a $105 million contract from U.S. Special Operations Command to provide advanced automation for the Air Force C-130J airlifter by Lockheed Martin as a step toward such features for special operations forces (SOF) fixed wing aircraft over the next five years.

Merlin and the U.S. Air Force’s 6th Air Refueling Wing at MacDill AFB, Fla., have been testing the Merlin Pilot system to provide autonomy and automation for the KC-135 tanker to reduce aircrew and allow crew members to focus on critical mission tasks ahead of possible flight testing of an autonomous KC-135 this year.

Matt George, the CEO and founder of Merlin, said in a company statement on July 30 that the collaboration with Northrop Grumman “marks a major milestone in advancing mission autonomy—combining Merlin’s innovative software with the scale, rigor, and hardware expertise Northrop Grumman offers, which is needed for real-world deployment.”

A version of this story originally appeared in affiliate publication Defense Daily.

The post Merlin to Integrate Its Mission Autonomy Software Onto Northrop Grumman M437 appeared first on Avionics International.

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Cleared to Roll: How Autonomous Taxiing and Smart Avionics Are Shaping Aircraft Values

Global Avionics Round-Up from Aircraft Value News (AVN)

The aircraft of the future won’t just fly itself…it will taxi itself, too. Autonomous taxiing technology is no longer a science project confined to testbeds and prototypes. It’s now a rapidly advancing reality, and avionics are at the center of the transformation.

As airports develop smarter ground systems and aircraft come equipped with more intelligent control suites, the interoperability between the two is defining new frontiers in fleet value, lease pricing, and operational planning.

For aircraft lessors and appraisers, the question is no longer whether autonomous taxiing is coming. The question is how fast, and how much it matters to the bottom line.

Why Taxiing Automation Is Gaining Ground

Aircraft engines weren’t designed to be ground vehicles. Using them to taxi burns fuel inefficiently, accelerates wear on components, and increases emissions.

A narrowbody aircraft like the A320 burns roughly 500 to 1,000 pounds of fuel during an average 15-minute taxi, depending on conditions. Multiply that by dozens of daily departures across a fleet, and the costs mount quickly.

Autonomous taxiing offers an elegant solution. By equipping aircraft with advanced avionics systems that integrate GPS, LIDAR, obstacle detection, and smart braking, manufacturers are making it possible for planes to taxi themselves without pilot input, or at least with far less. Some systems even allow electric motors embedded in the landing gear to handle taxiing, reducing reliance on the main engines entirely.

What started as an emissions reduction tool is now gaining attention as a driver of cost savings, airport efficiency, and aircraft value enhancement.

Smart Airports, Smarter Avionics

Autonomous taxiing doesn’t work in isolation. It requires a two-way conversation between the aircraft and airport ground systems. That means avionics have to be capable of communicating with surface movement guidance systems, runway lighting grids, and even AI-powered traffic control algorithms.

In some test environments, such as Toulouse, Frankfurt, and Singapore, autonomous aircraft are now receiving digital taxi instructions from ground systems, navigating with centimeter-level accuracy, and automatically braking for hazards without human involvement. The onboard avionics interpret taxiway maps, monitor proximity to other vehicles, and respond dynamically to updated clearance routes.

To do this, aircraft must be fitted with avionics suites that are not just GPS-capable but compatible with ground-based digital messaging standards. These avionics systems need to handle rapid data exchange, obstacle detection integration, and precise localization.

Leasing Implications: The Value of Smart Taxiing

Aircraft that support autonomous taxiing are being seen in a new light by lessors and operators focused on cost reduction, sustainability targets, and slot utilization. Ground time is expensive. So is fuel. And in congested airports, every extra minute of taxi time eats into profit margins.

Avionics that enable autonomous taxiing are now considered value-adding. Aircraft equipped with these systems are commanding higher lease rates in regions where smart airport infrastructure is already in place or under construction. Even where full autonomy isn’t available yet, aircraft with modular, upgradable avionics systems are seen as future-proof, making them more attractive in secondary markets.

Preliminary data from leasing benchmarks shows a 2% to 3.5% base value boost for aircraft equipped with autonomous taxi-capable avionics in relevant operational theaters, particularly in Europe and Asia. Operators flying into next-gen airports that support these systems are achieving shorter turnaround times, which in turn raises aircraft utilization rates, a key metric for lessors.

Retrofitting: A Cost with Return

While new-production aircraft can be ordered with autonomous-ready avionics, retrofitting is the path forward for much of the existing fleet. This includes installing enhanced sensor packages, integrating digital surface maps, and modifying flight control software to handle low-speed maneuvering under computer guidance.

The retrofit cost varies widely depending on aircraft type and age, but the payback period is shrinking. Reduced fuel burn during taxi, fewer tug operations, and shorter turnarounds create real savings. For lessors, aircraft that have undergone this upgrade are increasingly seen as differentiated assets, particularly when offered with full airport certification for smart ground movement systems.

Some MRO shops now offer bundled avionics and certification packages, targeting operators and lessors looking to position their fleets for long-term viability in a smart-airport world. As adoption grows, appraisers are expected to treat autonomous taxiing capability as a separate value line item, similar to how ETOPS or RNAV capabilities are modeled today.

Ground Infrastructure: The Other Half of the Equation

The aircraft can’t taxi smartly without help from the ground. That’s why airports are upgrading their own infrastructure, adding digital signage, sensor arrays, and edge computing systems capable of directing and verifying autonomous aircraft movements.

These improvements come with new data-sharing protocols that avionics must support, such as A-SMGCS (Advanced Surface Movement Guidance and Control System) and D-Taxi (data-linked taxi clearance systems).

Airport-aircraft interoperability is becoming a key point in lease planning. Aircraft that can plug into these upgraded systems can operate more efficiently. In some cases, these aircraft can even avoid delays tied to legacy infrastructure. In places such as Munich and Incheon, airports are beginning to favor airlines with compatible fleets when assigning slots and gates, further incentivizing investment in smart avionics.

Lessors are increasingly factoring in some aircraft’s “airport compatibility index,” informally speaking. A narrowbody that can be cleared to taxi by datalink in five major hubs is more appealing than one that can’t, even if it’s mechanically identical.

Operational Benefits Beyond the Cockpit

There’s also a safety argument to be made. Autonomous taxiing reduces the likelihood of ground collisions and runway incursions, especially in low-visibility conditions. Systems designed to automatically stop an aircraft short of an active runway or misaligned taxiway aren’t just smart; they’re also insurance against disaster.

Flight crews benefit too. Rather than relying on visual cues, they receive digitally mapped routes and real-time feedback from onboard systems. These innovations reduce pilot workload and increase situational awareness, which in turn lowers the risk of costly errors.

For cargo operators, the benefits are even greater. Precision taxiing means tighter scheduling and less idle time on the ground, both of which translate directly into better ROI on each flight cycle.

This article originally appeared in Aircraft Value News.

John Persinos is the editor-in-chief of Aircraft Value News.

The post Cleared to Roll: How Autonomous Taxiing and Smart Avionics Are Shaping Aircraft Values appeared first on Avionics International.

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Avionics in Sync: Why Standardization at Multimodal Hubs Is Lifting Aircraft Values

Global Avionics Round-Up from Aircraft Value News (AVN)

(Photo: Qatar Airways Cargo)

As global cities grow into dense logistics ecosystems, the line between air travel, rail, sea, and road transportation continues to blur. This fusion is most visible at next-generation multimodal hubs, i.e. those high-capacity, high-tech centers where aircraft, autonomous trucks, urban rail, and even drones intersect.

However, seamless transfers between modes of transport don’t just happen on the ground. In the cockpit, too, avionics are being rethought for compatibility with an increasingly interconnected infrastructure.

Aircraft avionics are being adapted for a world where coordination between modes isn’t optional—it’s essential. That shift is pushing forward a new wave of standardization efforts. For lessors, appraisers, and operators, these changes bring opportunities to boost asset values and extend fleet relevance, but only for those ready to embrace the interface revolution.

Multimodal Hubs: A New Kind of Airport

Multimodal transportation hubs are being designed to do more than move people from point A to B. In cities like Singapore, Dubai, and Frankfurt, airports are becoming digitally integrated logistics centers. They coordinate aircraft arrivals with last-mile electric vehicle fleets, link rail freight to belly cargo in widebodies, and even manage drone deliveries from central control towers.

For aircraft avionics, this means new demands. Ground infrastructure now requires aircraft to transmit and receive far more data, and to do so in standardized formats that mesh with logistics software, real-time security systems, and intermodal scheduling platforms. The aircraft is no longer an isolated unit. It is a node in a massive digital grid.

The Role of Avionics in Intermodal Coordination

The traditional avionics stack, comprised of flight management systems, communication radios, and navigation units, was built primarily for air-to-ground and air-to-air functions. But modern hubs are now asking for something more: avionics that can interface with port systems, customs infrastructure, automated passenger flows, and ground mobility services.

Consider gate scheduling. Standardized avionics can relay exact arrival times, turnaround metrics, and even deplaning progress to airport systems. That helps optimize baggage transfers, coordinate connecting ground transport, and even improve passenger wayfinding inside terminals.

Cargo aircraft are an even bigger beneficiary. If avionics can align directly with warehouse and distribution software, ground crews can pre-stage cargo based on real-time aircraft telemetry and arrival precision. That speeds up cargo flow, improves slot usage, and reduces idle time, all while adding value to the aircraft providing that level of service.

Enter the Standardization Push

To support this vision, manufacturers and regulatory bodies are racing to define a new baseline for avionics interoperability. The goal is to create open or semi-open interfaces that allow aircraft to communicate fluidly with both airport systems and non-aviation digital ecosystems.

Organizations like ARINC and EUROCAE are leading efforts to write the standards for cross-platform data formats and avionics interfaces. Meanwhile, OEMs like Thales, Collins Aerospace, and Garmin are rolling out modular avionics suites built around common communication protocols.

The key is plug-and-play adaptability. Avionics must be able to integrate with whatever digital environment the airport or hub uses, whether it’s proprietary logistics software or standardized APIs driving urban mobility platforms.

What It Means for Aircraft Values

Aircraft that can interface with these digital hubs are becoming more valuable, especially for operators in high-density regions where airport time is precious and ground coordination is critical. For widebody freighters, standardized avionics capable of feeding directly into cargo management platforms have proven to boost utilization and cut ground time, translating into better margins and, in turn, higher lease rates.

Passenger aircraft also benefit. Narrowbodies servicing short-haul, high-frequency routes through smart airports can deliver better on-time performance if their avionics are interoperable with scheduling and gate management systems. That performance edge is now reflected in how appraisers model asset value, particularly in Asia and Europe where smart airport infrastructure is furthest along.

According to several aviation consultancy studies, aircraft with open-standard avionics interfaces see value uplifts of 2% to 4% compared to similarly aged peers with legacy closed-loop systems. In leasing markets, such aircraft command stronger demand and more favorable lease terms, especially with operators aiming to future-proof their fleets against tightening airport integration requirements.

The Retrofit Dilemma

Much like the 5G upgrade wave, standardizing avionics for multimodal compatibility often requires retrofits. While newer aircraft from Airbus and Boeing come increasingly equipped with interface-ready avionics, older jets lag behind. These legacy systems were never designed to communicate beyond the aircraft’s own internal network or the most basic ATC links.

For lessors, this creates a segmentation of the fleet. High-capability aircraft with open-standard avionics are easier to place and maintain value better. Older aircraft lacking that flexibility are starting to slip in value, particularly in leasing markets tied to smart airport corridors.

The retrofit process can be challenging. Updating avionics to support standardized interfaces may involve swapping out multiple LRUs (line replaceable units), adding new data buses, and re-certifying systems under strict avionics regulations. But some manufacturers are now offering retrofit kits with pre-certified, drop-in compatible modules aimed at streamlining this process and keeping older aircraft in play.

How Lease Language Is Changing

Lessors are beginning to include interface-related clauses in lease agreements. In addition to traditional performance metrics, contracts now sometimes reference “hub compatibility” or require tenants to maintain avionics configurations that remain interoperable with designated airports or logistics platforms.

There’s also an emerging market for “interface maintenance packages,” where MRO providers update aircraft software and data layers periodically to keep systems aligned with evolving hub standards. These packages are not just operationally helpful; they’re becoming a value retention tool for lessors and financiers.

This article originally appeared in Aircraft Value News.

John Persinos is the editor-in-chief of Aircraft Value News.

The post Avionics in Sync: Why Standardization at Multimodal Hubs Is Lifting Aircraft Values appeared first on Avionics International.

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Flying at 5G Speed: How Next-Gen Connectivity Is Affecting Aircraft Avionics and Values

Global Avionics Round-Up from Aircraft Value News (AVN)

The global aviation sector is in the midst of a seismic technological shift as aircraft manufacturers, regulators, and service providers move to integrate fifth generation (5G) connectivity into onboard avionics systems.

First, let’s look at what “5G” means. The previous standard of 4G accelerated the smartphone boom by allowing a single device to handle a multitude of functions. But the standard that’s increasingly replacing 4G, the fifth iteration, provides a speed and reach that extends far beyond phones.

5G facilitates the Internet of Things by allowing several interconnected electronic devices and machines to communicate with each other instantaneously at ultra-fast speeds. Depending on specific network conditions, 5G’s speed is exponentially greater than 4G.

What was once the domain of smartphones and smart cities is now rapidly becoming essential to how aircraft communicate, navigate, and even maintain themselves in flight. But this transition isn’t just about better Wi-Fi for passengers. It is poised to influence aircraft valuations, alter lease rates, and reframe the economics of fleets worldwide.

Why 5G Is More Than Just Speed

At its core, 5G is about reduced latency, higher bandwidth, and more reliable connectivity. But for avionics, it’s also about enabling real-time data transmission that enhances safety, performance, and operational efficiency.

With 5G onboard, aircraft can offload telemetry, receive maintenance updates, and communicate with ground infrastructure at unprecedented speeds. This leap forward is particularly crucial for modern jets that rely heavily on digital systems and continuous data feedback.

For example, real-time health monitoring of avionics components becomes far more effective when high-speed, low-latency data transmission is available. Maintenance teams on the ground can receive live updates on system wear, performance metrics, and possible malfunctions. This shift allows operators to embrace predictive maintenance strategies more fully, reducing costly downtime and unplanned repairs.

A Global Standard in the Making

The race is now on to create a single global 5G avionics standard. Historically, differences in spectrum allocation and regulatory regimes have fragmented connectivity infrastructure across regions. Airlines flying from Europe to Asia or from North America to South America often switch between incompatible communication systems mid-flight.

A unified 5G standard would eliminate those inefficiencies, allowing aircraft to maintain seamless connectivity regardless of region. Major players like Airbus, Boeing, and Honeywell are working with international regulatory bodies to develop avionics systems that are “5G ready” in both hardware and software. These efforts also involve retrofitting existing aircraft, which introduces both opportunity and risk into the secondary aircraft market.

Impact on Aircraft Values and Lease Rates

Aircraft equipped with advanced 5G-compatible avionics are already being appraised at a premium. Lessors are beginning to differentiate between aircraft that are 5G-upgraded and those that are not, especially for narrowbodies expected to operate in high-traffic regions with dense data environments. While the exact value uplift varies by model and configuration, early indicators suggest a 3% to 5% bump in base values for aircraft retrofitted with modular 5G avionics.

On the lease side, the story is similar. Newer aircraft with integrated 5G fetch higher monthly lease rates, driven by their enhanced connectivity capabilities. Operators recognize the operational savings and safety improvements 5G enables, and they’re willing to pay a premium to avoid the compliance and upgrade headaches down the road.

For legacy aircraft that are not easily upgradeable, values are beginning to soften, especially in regions like Europe and parts of Asia where regulators are pressing ahead with ground infrastructure designed around 5G capabilities. These aircraft may still find homes in less regulated markets, but the pricing power of such placements is waning.

Challenges and Bottlenecks

Integration is not without its hurdles. Spectrum allocation remains uneven globally, and regulatory harmonization is slow. There are also lingering cybersecurity concerns. The more connected an aircraft becomes, the more it must be protected against intrusion.

This means avionics suppliers must incorporate layers of security, from encrypted transmission protocols to onboard firewalls. These added requirements increase development and installation costs, impacting ROI calculations for operators and lessors alike.

Moreover, while new aircraft can be delivered 5G-ready, retrofitting older fleets is a costly and time-consuming process. Avionics bays are tightly packed, and power budgets are carefully managed. Replacing legacy communication modules with new 5G units often requires significant rewiring and recalibration, which in turn grounds aircraft for extended periods.

Still, these costs are increasingly seen as a necessary investment. Airlines and lessors alike are reluctant to be left holding the bag on outdated technology that will soon limit routing flexibility or fail to meet regulatory standards.

What’s Ahead

The next two years are critical. As more countries roll out 5G-compatible airport infrastructure, pressure will mount on operators to ensure their fleets can interface with the new digital ground environment. The ICAO and other global regulators are expected to release more guidance on 5G integration protocols, which could prompt a wave of upgrades and retrofits across the commercial fleet.

Fleet planners are already baking 5G-readiness into asset selection decisions. Narrowbodies flying short, high-frequency routes are top candidates for early adoption, since these routes stand to benefit most from real-time maintenance and operational data streaming. Widebodies operating long-haul services will follow, especially for operators serving high-traffic hubs where 5G coverage is expected to be densest.

Lessors, meanwhile, are adjusting lease language to account for 5G capabilities. Some lease agreements now stipulate requirements for maintaining 5G readiness throughout the term of the lease, much like traditional clauses for ETOPS certification or cabin configuration.

This article originally appeared in Aircraft Value News.

John Persinos is the editor-in-chief of Aircraft Value News.

The post Flying at 5G Speed: How Next-Gen Connectivity Is Affecting Aircraft Avionics and Values appeared first on Avionics International.

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Senate Appropriators Back Army ATI Cuts But Knock ‘Disjointed Rollout,’ Rebuke Plan To End T901 Engine

Sikorsky receives the first two GE Aerospace T901 engines at its West Palm Beach, Florida facility for integration on a UH-60M Black Hawk helicopter. (Photo: Sikorsky)

The Senate Appropriations Committee has backed most of the Army’s divestments as part of its new transformation initiative, while its defense spending bill rebukes a plan to end development of the new T901 helicopter engine and adds funds to upgrade more AH-64D Apaches to the newer E-model. 

The bill also directs the Army to provide regular briefings on its transformation plan, citing concern with the “disjointed rollout” and stating the committee has yet to receive “sufficient details regarding the analysis behind, and the purpose of, specific ATI decisions despite several months of attempted dialogue.”

“The committee is a willing partner to the Army, as demonstrated in its recommendations in this bill for certain budget line item consolidation and divestment of certain systems. However, the Department of the Army’s disjointed rollout of the Army Transformation Initiative (ATI), lack of transparency and delay of formal budget documentation and analytic briefings, make it difficult for the committee to make fully informed decisions on implementing and resourcing all of the Army’s requested initiatives,” the panel writes in the report accompanying its bill. 

The Senate Appropriations Committee on July 31 voted 26-3 to advance its $852.5 billion fiscal year 2026 defense spending bill, approving a $21.7 billion topline increase that boosts funds for shipbuilding, munitions and Ukraine aid.

As part of the new ATI plan, the Army has detailed an intent to cut “obsolete” programs including the Joint Light Tactical Vehicle (JLTV), Humvee, AH-64D Apache, Gray Eagle UAS and the M10 Booker and potentially ending development of the T901 engine out of the Improved Turbine Engine Program (ITEP), the Future Tactical UAS (FTUAS) and the Robotic Combat Vehicle (RCV).

“By and large, we are allowing the Army to move forward with canceling some of these programs,” a senior Senate GOP aide told reporters. 

The Army has said its “invest to divest” strategy leading ATI accounted for shedding $4.9 billion of older and “ineffective” equipment in its FY ‘26 budget request, while looking to spend $8.9 billion on higher-priority efforts such as buying more drones and accelerating development of the Future Long Range Assault Aircraft and the new M1E3 Abrams tank.

“Some of these proposals have merit and should be pursued, such as greater integration of unmanned aerial systems and counter-unmanned aerial systems into lower level units. Others raise concerns, like the abrupt cancellation of other programs, some of which the Army identified as top priorities only months prior. Such actions have created unpredictability for the other military services that were jointly invested in them, public and private industry and international partners,” Senate appropriators wrote in their bill report. 

Senate appropriators’ bill restores $175 million in funding for the ITEP program, after the Army targeted it for a cut, with the senior Senate GOP aide citing it as a “critical program to increase power and efficiency” on Army helicopters.

GE Aerospace, which developed the T901 as the future engine for the Army’s UH-60 Black Hawk and AH-64 Apache helicopters, has said the fate of the ITEP program is dependent on how FY ‘26 funding shapes out.

While the Army included Boeing’s AH-64D Apache among its planned divestments, Senate appropriators added $360 million to remanufacture 12 of the aircraft into the E-model configuration.

Gen. James Mingus, the Army vice chief of staff, previously said the Army wasn’t planning to upgrade any more AH-64Ds into newer E-models.

Outside of those two program increases, Senate appropriators’ defense bill appears to support the Army’s cuts for JLTV, Humvee, the M10 Booker, Gray Eagle, FTUAS and RCV. 

“We’re not forcing the Army to buy any Humvees, but we are investing in some anti-lock brake retrofit kits since the existing Humvee fleet is going to be with the Army for many decades to come,” a senior Senate GOP aide said, with the bill including a $25 million add for the kits. 

The Senate Appropriations Committee’s bill directs Army senior leaders to begin quarterly briefings to the congressional defense committees within 30 days of the legislation’s passage that would detail the service’s “harmonized operational and investment strategy” for ATI.

The briefings are expected to cover threat assessments that informed proposed changes, force structure impacts, acquisition strategy and investment timelines, defense industrial base impacts and implications for the Joint Force.

The House Appropriations Committee backed the Army’s M10 Booker cancellation while rebuking its JLTV, Gray Eagle, ITEP and FTUAS cuts.

Both the House and Senate Armed Services Committees’ respective versions of the National Defense Authorization Act support many of the Army’s planned ATI-related changes, while also calling on the service leaders to provide more details.

A version of this story originally appeared in affiliate publication Defense Daily.

The post Senate Appropriators Back Army ATI Cuts But Knock ‘Disjointed Rollout,’ Rebuke Plan To End T901 Engine appeared first on Avionics International.

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Red Cat Expects LRIP Order Soon For Army’s SRR Small Drone, ‘Aggressive’ Ramp Up In FY ‘26

Red Cat’s Black Widow sUAS. (Photo Red Cat)

Red Cat Holdings has said it’s expecting a low-rate production order “very soon” for the Army’s Short Range Reconnaissance (SRR) small drone program, noting the service’s plan for a “significant” fielding ramp up next fiscal year.

Jeff Thompson, CEO of Red Cat, told sister publication Defense Daily the forthcoming order for its Black Widow small UAS is expected to be followed by a full-rate production award in early FY ‘26 that could total around $220 million to support scaling up the SRR effort.

“The fielding schedules are pretty darn aggressive,” Thompson said. 

After participating in the competitive SRR Tranche 2 prototyping effort, the Army announced in November 2024 it had selected Red Cat’s Black Widow sUAS for fielding over Skydio’s X10D small drone offering. Red Cat said at the time that procurement for the SRR program of record could cover nearly 6,000 systems/

The Army has said SRR is intended to provide platoons with small drones that offer real-time reconnaissance, security, and target acquisition capabilities.

Red Cat has previously noted the Black Widow sUAS’ capabilities include AI-aided target identification, tracking and classification software, forward-looking obstacle avoidance, a stealth mode to execute missions with radios off, a quiet acoustic signature and modularity to allow for “seamless” secondary payload integration.

The imminent LRIP order, which the Army calls TD-3, is expected before the end of the current fiscal year on Sept. 30 and that deliveries would occur within 90 days of award. Thompson said that prior budget documents stated the deal may cover about 250 systems, with a system consisting of two drones and one controller. 

As the Army then looks to scale up SRR in FY ‘26, Thompson said budget documents outlined plans for a full-rate production contract worth around $220 million, split between around $148 million for drones and $70 million for spares, repairs and training. 

Thompson noted that since last fall’s selection for the SRR program of record the Army has awarded it a pair deals, TD-1 and TD-2, worth around $2.8 million covering work to add features ahead of of LRIP and to advance compatibility with the Army-developed Universal Controller (UVC) toolkit.

“[The Army] will only buy drones that use UVC. We’re the first company to ever deploy it successfully. We’ve done some recent tests in front of large groups for the Army, all different branches across the Army, all different divisions,” Thompson said. “They wanted to make sure we could [use] the universal controller before we [went into] LRIP.”

The UVC toolkit, utilizing the Army’s UAS Tool software, was integrated on Red Cat’s own controller for the Black Widow drone.

Thompson said Red Cat is capable of building more than 500 Black Widow sUAS a month, with a capacity to expand as needed. 

“If they gave us an order for 5,000 [drones] a month, we could get there in two months. If they gave us an order for 10,000 a month, same thing,” Thompson said. “Our supply chain is great. Our production capabilities are great. We’ve expanded our facility.”

Defense Secretary Pete Hegseth recently signed a memo directing the military services to more aggressively purchase small drones with a goal to widely field these systems by the end of 2026, while Thompson said there was no “Hegseth effect” for SRR as the Army’s plans have been in place for over a year.

The Army has laid out its own goal to deliver thousands of small drones over the next year, with an interest in systems that each cost less than $2,000, building off a previous “Purpose-Built Attritable Systems” (PBAS) notice that asked industry for information on small, first person view (FPV) drones that are “production-ready.”

Thompson said FPV drones, which have been used extensively by Ukraine, “are great…but they’re not very capable,” citing their lack of visual navigation or electronic warfare-resistant capabilities. 

“They’re capable for one thing, mostly, and that’s just kamikaze [use]…In the U.S., we can’t make FPV drones like they make them over there [in Ukraine]. They’d have to be standardized. They’d have to have safety capabilities,” Thompson said. “All the stuff that’s being made in all these other countries are being made with Chinese parts. They’d have to [be made] with U.S. parts. And, frankly, by the time you made a U.S. FPV drone it’s going to be a lot more expensive than the $1,000 per drone like in Ukraine.”

“This is going to sound completely selfish and self-serving, why not just build way more ISR drones,” Thompson added.

Thompson noted Black Widow is the “first scaled platform” to utilize Palantir’s visual navigation capability.

“And their visual navigation is the best on the planet. No one’s going to compete with it,” Thompson said. “The way they do visual navigation is different than everybody else. It’s three different buckets of technology to basically make it as locked in as a GPS without a GPS. Red Cat’s looking to just rip the GPS out of our drones going forward because of [Palantir’s] visual navigation.”

Red Cat announced its partnership with Palantir this past December, noting the company VNav visual navigation software “accelerates the ability to deploy electronic-warfare resistant sUAS without GPS” and is enabled by satellite imagery integration, Alternative PNT source capabilities and Palantir’s Edge Runtime system to run visual navigation algorithms onboard while fully offline.

A Defense Innovation Unit-led event in Alaska in June tested drone systems’ radio communication technologies against electromagnetic interference to assess current challenges.

Cal Biesecker contributed to this article.

A version of this story originally appeared in affiliate publication Defense Daily.

The post Red Cat Expects LRIP Order Soon For Army’s SRR Small Drone, ‘Aggressive’ Ramp Up In FY ‘26 appeared first on Avionics International.

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