FAA expects $100 million tariff impact on $12.5 billion modernization plan

  • FAA expects tariffs to add about $100 million to its air traffic control modernization plan.
  • $12.5 billion was approved last year, with radar purchases driving much of the tariff cost.
  • RTX’s Collins Aerospace and Indra Group are moving radar production to Florida and Kansas.

The Federal Aviation Administration expects tariffs to add about $100 million to the government’s more than $12.5 billion air traffic control modernization plan, with radar purchases accounting for much of the projected cost. FAA Administrator Bryan Bedford told lawmakers that RTX’s Collins Aerospace and Spain-based Indra Group are moving radar production to facilities in Largo, Florida, and Kansas, respectively. Congress approved $12.5 billion last year to replace aging systems and hire controllers, while the FAA is seeking at least another $10 billion for a second phase. A government report said the cost of telecommunications upgrades has risen to $5.91 billion from $4.75 billion.

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