Investing.com -- President Donald Trump indicated on Wednesday that Raytheon Technologies (NYSE: RTX ) and IBM (NYSE: IBM ) are potential candidates for a contract to modernize the U.S. air traffic controller system. While there are five companies in total being considered, he singled out these two during a cabinet meeting.

The President emphasized the urgency of replacing the current system, which he described as outdated and inefficient. He criticized the billions of dollars spent over the past four years on upgrades, which he claimed have been ineffective, stating that the system is still reliant on obsolete technology.

The need for a state-of-the-art air traffic control system was stressed, with the President highlighting a recent incident where a helicopter collided with a plane due to a lack of warning systems. He stated that with the right equipment, such accidents could be prevented.

He also emphasized the importance of having a single contractor to oversee the entire project, including the installation of new equipment and integrating old systems with new ones. He suggested that this contractor could be one of several major companies, including Raytheon Technologies and IBM.

The President suggested that a new system would increase efficiency in the airspace, leading to more flights and fewer delays, thereby strengthening the economy. He also stated that the new system would be safer and would have the capability to alert air traffic controllers in case of potential collisions.

The President noted that the modernization project is complex, as it involves building a new system while planes continue to take off and land. He also mentioned that the new system would be interconnected, with the same equipment installed in all towers across the country and potentially worldwide.

The President concluded by stating that the new system will be a significant improvement and that the nation can be proud of it. He reiterated the need for a single, powerful contractor to take charge of the project.

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