This paper addresses the problem of proper integration of an inertial navigation system with an air data system. First, we present a mathematical formalism of the system's mechanization, i.e., navigation equations for spheroidal Earth, air data observation equations, and error propagation equations for optimal Kalman filtering. Next, an analytical observability analysis is conducted and demonstrated by means of a simulation. Finally, we draw conclusions about expected benefits and the most suitable applications. Copyright © 2017 Institute of Navigation