FAA: New Radio Altimeters to Cost US Airlines $4.5 Billion
US airlines and private aircraft operators face a combined USD 4.49 billion bill to upgrade radio altimeters under a proposed new rule from the Federal Aviation Administration (FAA). The mandate would require operators to replace or retrofit existing equipment with next-generation, interference-tolerant radio altimeters capable of operating safely alongside expanded wireless services in the Upper C-band. The FAA expects the initial compliance window to run between 2029 and 2032.
The proposal stems from the One Big Beautiful Bill Act of 2025, a flagship legislative package associated with Donald Trump, which instructed the Federal Communications Commission (FCC) to accelerate next-generation wireless deployment by auctioning at least 100 megahertz of spectrum in the Upper C-band. Aviation regulators have long warned that 5G and other wireless signals operating near aviation frequencies could interfere with radio altimeters, which provide critical height-above-ground data to pilots and automated safety systems during approach and landing.
Under the proposed rule, all radio altimeters installed on US-registered aircraft would need to demonstrate tolerance to adjacent-band interference while continuing to deliver precise altitude information. The requirement would apply to aircraft operating under Parts 91 and 121, as well as Part 129 aircraft configured with 30 or more passenger seats or a payload exceeding 7,500 pounds (3,401 kilograms). Part 135 operators would also be covered.
The FAA plans to impose earlier deadlines on Part 121 and Part 129 aircraft—primarily major domestic and international airline operations—requiring compliance between 2029 and 2032. All other aircraft equipped with radio altimeters would receive an additional two-year grace period. The agency said the tighter timeline reflects the fact that these operations “affect the majority of the flying public, carry the highest public expectation of safety, and are the most critical to the national economy.”
Cost estimates vary by operating category. The FAA projects USD 1.58 billion for Part 91 operators, USD 1.36 billion for Part 121 airlines, USD 891 million for Part 129 operators, and USD 651 million for Part 135 fleets. Annualised costs are expected to range from USD 61 million to USD 150 million over 20 years, excluding indirect impacts such as aircraft downtime, installation delays, and supply-chain constraints.
In total, about 40,871 aircraft will require modification, involving the replacement or upgrade of at least 58,579 radio altimeters, across nearly 14,000 registered US operators. According to Bloomberg, the FCC is exploring options to help offset retrofit costs, potentially using proceeds from future spectrum auctions.
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Sources: AirGuide Business airguide.info, bing.com, ch-aviation.com