FAA Offers $2.2 Billion in Rebates for Airlines to Fix 5G Interference Issue

Major American airlines are facing a deadline to upgrade their aircraft equipment due to concerns about interference from 5G wireless signals — but the federal government is stepping in to help foot the bill.

The Federal Aviation Administration announced Friday that carriers will be eligible for up to $2.2 billion in government rebates to help cover the expense of retrofitting planes with next-generation altimeters. These instruments measure how high an aircraft is above the ground and are essential for safe landings in poor weather conditions.

The FAA is requiring all altimeters to meet updated performance standards to prevent inaccurate readings caused by 5G signals operating in nearby wireless spectrum. The agency estimates the upgrade will cost between $80,000 and $120,000 per aircraft.

Under the new rules, major domestic and international airlines must complete their retrofits by the end of 2030. The FAA described that deadline as covering flights that “affect the flying public, have the highest public expectation of safety, perform a significant majority of low-visibility operations that would otherwise be restricted to protect from hazardous interference.”

Other types of aircraft will have until 2034 to complete their upgrades. The FAA puts the total cost of retrofitting all civilian planes at as much as $7.1 billion.

The rebate funding will come from proceeds generated by a C-Band wireless spectrum auction conducted by the Federal Communications Commission. Foreign airline operators will not qualify for the rebates, and the FAA’s requirements apply only to aircraft flying within U.S. airspace.

FCC Chair Brendan Carr commented this week that the two agencies working together “will together provide for the upgrade radio altimeters and provide rebates to support eligible domestic aircraft operators and owners in this effort.”

The issue of 5G interference with aircraft equipment first made headlines in 2022, when several international airlines canceled flights at certain U.S. airports over fears that 5G service could disrupt altimeter readings. That situation was eventually resolved through a voluntary agreement between Verizon, AT&T, and major air carriers, though challenges continued as airlines worked through the altimeter upgrade process.