Panama recorded 152,813 aircraft movements in 2024, a 14.8% rise from 133,084 in 2022, and Thales is now set to modernise the country's air traffic control centre to absorb further growth.

The Civil Aviation Authority (AAC) has contracted Thales, working in a consortium with local partner SOFRATESA, to overhaul the Panama City control centre with a range of air traffic management systems.

The scope covers:

• Air traffic control (ATC) systems
• Aeronautical message handling systems (AMHS)
• Voice recording systems (VRS)

Why is Panama upgrading now?

Traffic growth is outpacing existing infrastructure. AAC projections indicate annual flight movements could surpass 200,000 and passenger numbers could exceed 20 million in coming years — roughly a 30% increase in operations from the 2024 figure.

AAC director general Captain Rafael Bárcenas framed the programme as both a safety and capacity investment. He said: "This project, resulting from the alliance with Thales and Sofratesa, strengthens the institution's firm commitment to operational safety, improves efficiency in air traffic management, and promotes the implementation of cutting-edge technologies, in line with the growth of the aviation sector and the highest international standards."

The modernisation carries network consequences beyond Panama's borders. The country's carriers and hub operations depend on the efficiency of its airspace; faster message handling and updated ATC systems can reduce delays and improve flow management as traffic density increases.

What does Thales bring to the deal?

The contract extends a long-standing footprint. Thales marks four decades of business in Central America and the Caribbean and has spent more than ten years supporting Panama's air traffic control infrastructure specifically.

Across Latin America and the Caribbean, the company counts:

• More than 220 radars deployed
• 500 navigational aids installed
• 30 air traffic control centres delivered

Thales will draw support from its air traffic management integration and service centre in Mexico City, which the company says will contribute technical support and skills development for the Panamanian programme — a transfer-of-knowledge element that matters for long-term maintenance independence at the AAC.

Thales also points to prior regional firsts, including what it describes as the world's first fully solar-powered ATC radar station, located in Calama, Chile.

Youzec Kurp, vice-president for airspace mobility solutions at Thales, positioned the deal within a broader modernisation push. He said: "This collaboration marks a significant step in the continued modernisation and sustainable growth of Panama's civil aviation sector, underpinned by Thales's proven technology and enduring partnership commitment."

Thales did not disclose the contract value or a delivery timeline in the announcement.

What happens next?

The consortium's implementation schedule will determine whether the new systems arrive ahead of the projected traffic surge. If movements reach the 200,000 mark, Panama's controllers will rely on the upgraded centre to manage one of the busiest airspaces in Central America.