U.S. FAA Announces Aircraft Retrofit Mandate with Up to $2.2 Billion in Airline Rebates
The U.S. Federal Aviation Administration (FAA) has announced that major domestic airlines must retrofit their aircraft by the end of 2030 to ensure radio altimeters can operate safely alongside next-generation wireless networks. To help offset the cost, eligible U.S. airlines will be able to claim up to $2.2 billion in government rebates funded through proceeds from the Federal Communications Commission’s (FCC) C-Band wireless spectrum auction.
The FAA’s new rule requires aircraft radio altimeters to meet enhanced performance standards designed to prevent interference from 5G signals that could result in inaccurate altitude readings. The agency estimates retrofit costs at $80,000 to $120,000 per aircraft.
While major U.S. passenger airlines must comply by 2030, other civilian aircraft operators will have until 2034 to complete the upgrades. The FAA estimates the total cost of retrofitting the U.S. civilian fleet could reach $7.1 billion.
According to the FAA, the 2030 deadline applies to major domestic and international airlines operating flights that carry the highest public safety expectations and conduct a significant share of low-visibility operations, where reliable altitude data is critical.
The rebate program is limited to eligible U.S. aircraft operators, while foreign airlines operating in U.S. airspace must comply with the new equipment standards but will not qualify for financial assistance.
FCC Chairman Brendan Carr said the coordinated efforts of the FCC and FAA will facilitate the nationwide upgrade of aircraft radio altimeters while providing rebates to support eligible domestic operators.
The new requirements follow industry concerns raised in 2022, when the rollout of C-Band 5G services prompted temporary flight disruptions and cancellations at several U.S. airports over fears that wireless signals could interfere with aircraft altimeters. A voluntary agreement between Verizon, AT&T, and major airlines helped resolve the immediate issue, but airlines have continued upgrading their equipment to ensure long-term operational safety.
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