Log-in here if you’re already a subscriber
The Federal Aviation Administration’s selection and consideration of foreign-owned contractors to modernize the nation’s air traffic control system has stoked frustration among U.S. businesses vying for the same contracts, underscoring how a broader shift towards protectionism is testing an aviation industry built on globalization.
Spain’s Indra, France’s Thales and Austria’s Frequentis have all been selected or are in the running for various “Brand New” Air Traffic Control System (BNATCS) efforts, prompting multiple U.S. contractors to argue that their inclusion is antithetical to the Trump administration’s “America first” foreign policy, people briefed on the matter told The Air Current. Those U.S. contractors have pointed to a 2024 European Union regulation that bars non-EU companies from providing ATC services in member states as a specific reason why European companies should be excluded from BNATCS programs.
U.S. companies including RTX Corp. and L3Harris have attempted to drum up support for some sort of reciprocal U.S. action — a move that would be supported by others including Leidos, the briefed people said. Yet their argument for doing so has been crafted for almost two years without clear explanations from the European Commission about how the regulation applies and to whom. Though a number of questions about the policy remain unanswered, the EC in a statement to TAC provided the first public clarification of the policy’s intent, offering an explanation that runs contrary to the U.S. companies’ argument for reciprocal restrictions.
While the statement may complicate the immediate campaign to prohibit European companies from participating in BNATCS, the underlying tensions associated with protectionist policies are still unresolved — and pose risks for the deeply international business of air traffic management on both sides of the pond.
Subscribe to continue reading...Subscribe to Continue Reading
Our award-winning aerospace reporting combines the highest standards of journalism with the level of technical detail and rigor expected by a sophisticated industry audience.
- Exclusive reporting and analysis on the strategy and technology of flying
- Full access to our archive of industry intelligence
- We respect your time; everything we publish earns your attention
