Parsons gains after teaming up with IBM to modernize U.S. air traffic control

Published 24/06/2025, 15:26
© Reuters.

Investing.com -- Parsons Corporation (NYSE:PSN) stock gained nearly 2% off the open Tuesday after the company and IBM (NYSE:IBM) announced a partnership to build a new air traffic control system for the United States, responding to a call from President Donald Trump and Transportation Secretary Sean Duffy.

The collaboration aims to overhaul the Federal Aviation Administration’s (FAA) National Airspace System (NAS) with Parsons serving as the prime contractor providing unified leadership and program responsibility.

"This partnership represents two American industry leaders bringing together a combined nearly 200 years of experience and expertise in complex program management and systems integration to deliver a state-of-the-art air traffic control system for our nation," said Carey Smith, Chair, President, and Chief Executive Officer of Parsons Corporation.

The initiative prioritizes an open vendor approach that will allow the FAA to incorporate the latest technologies and make continuous improvements based on real-time feedback and evolving needs.

Parsons brings nearly 50 years of experience working with the FAA through its Technical Support Services contract, during which it has implemented initiatives across the FAA’s Aviation System Capital Improvement Program. The company has worked with over 450 airports in 40 countries and was recently rated as the top program manager by Engineering News Record.

"We are proud to bring our expertise and technology to this once-in-a-generation opportunity," said Mohamad Ali, Senior Vice President at IBM, which has served the U.S. federal government for almost its entire 114-year history.

The NAS is considered the global gold standard of air transportation systems, encompassing air traffic control, air navigation facilities, airports, regulations, and personnel. The modernization effort aims to create a safer, more resilient aviation ecosystem that supports travel, economic prosperity, and national security.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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