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FAA Seeks Billions More to Fund CAP Automation Amid Growing Industry Competition
FAA faces funding shortfalls for its Common Automation Platform, while Thales and other firms vie to supply next-gen air traffic control systems to modernize U.S. airspace.
The gist
FAA struggles with funding gaps for a unified ATC automation system as Thales and rivals compete to supply the critical Common Automation Platform.
The Federal Aviation Administration continues to grapple with significant funding deficits for its Common Automation Platform (CAP), a crucial component in modernizing the nation’s air traffic control (ATC) technology. The CAP aims to merge two existing systems, En Route Automation Modernization (ERAM) and the Standard Terminal Automation Replacement System (STARS), into one streamlined platform to enhance controller efficiency and flight safety. Despite broad recognition of the platform’s importance, budget allocations fall billions short of the estimated costs, casting uncertainty over the project's timely development and deployment.
Thales is the latest company presenting a CAP solution tailored specifically to the FAA’s vision for modernization. On August 13, the firm introduced TopSky-America, a cloud-enabled, artificial intelligence-powered system designed exclusively for the U.S. National Airspace System (NAS). This platform seeks to unify data from ERAM, which manages high-altitude en route flights, and STARS, which coordinates flight arrivals, departures, and sequencing in terminal control facilities. By consolidating functions such as weather updates and conflict alerts, TopSky-America promises to lessen the workload on air traffic controllers while preserving safety standards.
The FAA’s CAP initiative forms a fundamental pillar of the Department of Transportation's broader 'Brand New Air Traffic Control System' (BNATCS) program, envisioned to overhaul the U.S. ATC infrastructure. However, financial support remains a major hurdle. Although Congress allocated $12.5 billion for BNATCS last year, the Department of Transportation has requested a total of $31.5 billion to fully fund the program’s more capital-intensive components. Advocacy groups like the Modern Skies Coalition, led by the Aircraft Owners and Pilots Association (AOPA), have called on Congress to approve an additional $20 billion, estimating that CAP alone might cost around $10 billion.
Transportation Secretary Sean Duffy has publicly pushed for increased funding, previously requesting the full $20 billion but recently indicating a willingness to accept $10 billion. He explained this smaller figure would cover planned software enhancements, while a subsequent $10 billion would be needed for physical infrastructure improvements, such as new TRACON facilities. Notably, the CAP’s exact funding needs remain unclarified by the FAA, and Duffy did not specifically mention the CAP in his recent statements. In response, Thales expressed support for the FAA’s call for more congressional appropriations to move the project forward.
Competition to provide the FAA with a CAP solution is intensifying among major aerospace contractors. Alongside Thales’ TopSky-America, Collins Aerospace, a RTX subsidiary, is promoting an adaptation of its AutoTrac platform. Collins Aerospace previously secured contracts to supply new ATC radars for BNATCS and serves as the FAA’s principal STARS contractor. Leidos, responsible for maintaining ERAM, also offers a CAP alternative. Collectively, these companies join Australia’s Frequentis and Spain’s Indra as candidates shortlisted by the FAA for the CAP contract, illustrating the market’s high stakes and diversity of technical approaches.
Thales brings to the table its significant global footprint, with its TopSky system managing an estimated 40% of worldwide air traffic. The company is also actively modernizing air traffic management in countries like Singapore and Mongolia and developing technologies for uncrewed aircraft systems (UAS) traffic control. Aligning with U.S. priorities, Thales is committed to domestic software development for TopSky-America, supporting federal initiatives to repatriate critical infrastructure jobs. FAA Administrator Bryan Bedford highlighted these onshoring efforts as fitting into Secretary Duffy and President Trump’s strategic goals, with Thales anticipating it will create several hundred American jobs.
FAA competition extends beyond CAP procurement, as demonstrated in the recent award of the Strategic Management of Airspace, Routes, and Trajectories (SMART) contract. Thales was shortlisted but ultimately lost to Air Space Intelligence, following evaluations of digital twins of the NAS. Secretary Duffy emphasized the competitive, merit-based approach being applied across FAA modernization projects, prioritizing contractors’ ability to deliver superior software solutions that meet operational needs. This competitive strategy exemplifies the FAA’s focus on harnessing advanced technologies while ensuring fiscal responsibility amid constrained budgets.
The funding challenges facing the CAP complicate the FAA’s path toward a cohesive, next-generation ATC system capable of accommodating increasing air traffic volumes safely and efficiently. With a contract award pending among five shortlisted vendors, and billions still needed from Congress, the agency confronts a critical juncture in aligning financial resources, technological innovation, and workforce support. The outcome will directly influence the U.S. aviation system’s capacity to maintain global competitiveness and safety standards in the years ahead.
Frequently asked questions
- What is the FAA's Common Automation Platform (CAP)?
- The CAP is an FAA initiative to combine the ERAM and STARS air traffic control systems into a single, modernized platform to improve controller efficiency and situational awareness.
- Why does the FAA need additional funding for CAP?
- Current funding falls significantly short of the estimated $10 billion cost needed to fully develop and deploy the CAP as part of the BNATCS modernization program.
- Which companies are competing to supply the FAA's CAP system?
- Thales, Collins Aerospace (RTX), Leidos, Frequentis, and Indra are the five companies shortlisted to compete for the FAA's CAP contract.
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