FAA Selects Palantir, Thales, and Airspace Intelligence for AI Flight Conflict Prediction System
FAA Develops AI-Powered Air Traffic Management Tool
The Federal Aviation Administration (FAA) is in the process of developing an artificial intelligence-based air traffic management system aimed at enhancing flight safety. This initiative, known as Strategic Management of Airspace Routing Trajectories (SMART), is designed to allow air traffic controllers to identify and resolve potential flight path conflicts up to two hours in advance. The information was reported by The Air Current on April 17, 2026.
Three companies are competing to develop SMART: Palantir Technologies, Thales, and Airspace Intelligence. FAA Administrator Bryan Bedford is personally overseeing the project, which was publicly acknowledged by Transportation Secretary Sean Duffy during a Semafor event on April 17. Currently, controllers operate within a 15-minute planning window, but SMART aims to extend this significantly.
Transitioning to Predictive Air Traffic Control
SMART is intended to model the entire National Airspace System in four dimensions, allowing for the identification of scheduling conflicts before an aircraft departs. The current air traffic control system is largely reactive, addressing conflicts only as they arise. In contrast, SMART will enable controllers to adjust flight paths proactively, potentially preventing conflicts before they occur.
The FAA has indicated that this project is part of a broader modernization effort, which has already received $12.5 billion in funding from Congress. An additional $20 billion is estimated to be necessary to complete the overhaul, with the total program budget projected at around $32.5 billion. This budget includes plans to replace 612 outdated radar systems and hire 1,200 new air traffic controllers in fiscal 2026.
Competition Among Bidders
The three companies vying for the SMART contract each bring unique strengths to the table:
- Palantir Technologies: Known for its strong federal relationships, Palantir has a significant contract with the U.S. Army and has expanded into the drone sector.
- Thales: A French aerospace company with extensive experience in air traffic management across Europe and Asia.
- Airspace Intelligence: A Silicon Valley startup that has developed Flyways AI, a platform used by Alaska Airlines to optimize flight routes and reduce fuel consumption.
Implications for the Drone Industry
While SMART is primarily a tool for manned aviation, its implications for the drone industry are substantial. The predictive capabilities of SMART could facilitate routine Beyond Visual Line of Sight (BVLOS) operations, which are currently under regulatory review. The FAA’s Part 108 BVLOS rule is expected to be finalized by February 1, 2026, and how drone flight plans will interact with manned traffic remains a critical question.
NASA’s work on Unmanned Aircraft System Traffic Management (UTM) has anticipated integration with manned air traffic control. The vendor selected for SMART will play a crucial role in this integration, influencing the future of drone delivery, advanced air mobility, and electric vertical takeoff and landing (eVTOL) operations in the U.S.
Conclusion
The FAA’s modernization efforts, particularly with the SMART initiative, represent a significant shift in air traffic management. The potential for a predictive system that can accommodate thousands of drone flight plans daily could address current limitations in air traffic control. As the FAA moves forward, the selection of a prime contractor for SMART is expected by the end of Q3 2026, with implications for the future of airspace management and drone operations.