Aircraft Collision Avoidance Act of 1987 - Amends the Federal Aviation Act of 1958 to direct the Administrator of the Federal Aviation Administration to complete development of the collision avoidance system known as TCAS-II so that it will be operable under visual and instrument flight rules and will be upgradable to the performance standards applicable to the collision avoidance system known as TCAS-III.

Requires the Administrator to: (1) implement a development and certification schedule resulting within 18 months after the date of enactment of this Act in the completion of TCAS-II certification; (2) report monthly to the Congress on TCAS-II development and certification; (3) require that civil aircraft with a maximum passenger capacity of more than 30 seats have an operational TCAS-II within 30 months after the certification of such system; and (4) require that automatic pressure altitude-encoding equipment be operated on certain civil aircraft operating in a high traffic density area.

Requires the Administrator to complete as soon as possible research, development, and certification of the TCAS-III collision avoidance system.

Authorizes appropriations.