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Aging avionics have become a problem because aircraft are being kept in service far longer than the original plan. This paper discusses the four key problems of aging avionics: (1) determining the systems that are the high cost drivers in order to select those that should receive priority; (2) determining the requirements for the replacement; (3) identifying alternative technologies that will satisfy the requirements and are affordable; and (4) determining the funding required and acquiring the funding needed to replace the aging avionics. Challenges encountered in solving these problems include management and technical. The problem of aging avionics is not limited to a single aircraft, but occurs across all aircraft. Cost-effective modernization requires cutting horizontally across all aging aircraft, and coordination with the end users and the existing management structure. A key technical challenge is to select an architecture that is upgradeable since the funding limitations may ensure parts will become obsolete prior to the completion of a drawn-out production.