U.S. army signs $4.2 billion pact for high-altitude surveillance blimps

The U.S. Army has signed a massive contract worth up to US$4.2 billion to improve its intelligence and surveillance systems using aerostat-tethered airships. These airships, called Persistent Surveillance Systems–Tethered (PSS-T), are capable of hovering at altitudes up to 15,000 feet for extended durations. They will be fitted with advanced sensors to monitor vast areas continuously.

Ten companies, including Leidos, QinetiQ, and TCOM, will compete for work under the Army’s Program Executive Office for Intelligence, Electronic Warfare, and Sensors (PEO IEW&S). The program also allows for international sales, with Poland committing US$1 billion in 2024 to acquire these systems—a sign of growing global interest in the technology.

Aerostats have a history. In Iraq and Afghanistan, they helped relay communications, disrupt enemy signals, and track movement. Now, their mission has shifted: to address modern challenges posed by strategic competitors like China and Russia. The urgency sharpened after the 2023 Chinese spy balloon incident, which exposed serious blind spots in U.S. airspace surveillance. Aerostats are favored for their cost-effectiveness and low operational demands compared to drones or satellites.

A spokesperson for PEO IEW&S, Brandon Pollachek, noted that balloons have long served in military surveillance roles. This program, he said, updates that legacy to confront today’s threats, from stealth aircraft to cyber warfare. The new systems are a targeted effort to plug critical gaps in aerial monitoring, particularly in the “near-space” zone that China exploited in 2023. While not the origin of the Army’s aerostat strategy, the incident catalyzed its urgency.

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