Musk's Starlink could snag Verizon's $2.4 billion contract to modernize US air traffic control
As Elon Musk tries to "streamline" the federal bureaucracy under the pretext of increasing efficiency, his company Starlink looks set to win a multibillion-dollar government contract that previously belonged to Verizon, The Verge reports.
The Federal Aviation Administration (FAA) is considering canceling a $2.4 billion contract to upgrade communications systems for U.S. airspace management and handing it over to a SpaceX subsidiary, according to The Washington Post, a report that also was confirmed by Bloomberg and the Associated Press.
The details of this process remain unclear. The FAA could either split some of the work between Starlink and Verizon or hand the contract entirely over to Musk’s company. In either case, a wave of accusations of protectionism, conflict of interest, and corrupt ties is expected.
In recent days, Musk has been actively questioning the effectiveness of Verizon’s system, claiming without evidence that it “doesn’t work” and “compromises the safety of air travelers.” He wrote on X that Verizon’s system is “breaking down very rapidly” and that the FAA estimates a catastrophic failure could occur within single digit months. He also said that Starlink terminals would be provided “NO COST to the taxpayer on an emergency basis to restore air traffic control connectivity.”
This scenario sounds familiar: Musk writes about the FAA in X, and then his claims become reality. For example, after the FAA fined SpaceX for violating launch rules, Musk demanded the resignation of the agency’s administrator, Michael Whitaker. Whitaker resigned on the day of Donald Trump’s inauguration.
In recent weeks, a SpaceX team has been working inside the FAA, helping to modernize the agency's technology infrastructure. U.S. Transportation Secretary Sean Duffy said the company has been tasked with creating "a new, better, more modern, and safer system." According to The Washington Post, several SpaceX employees have even been given official corporate FAA email addresses. One of them posted a photo of the team on X with the caption: "Working to improve the safety of our national airspace."
The FAA was expected to begin making payments on the Verizon contract next month. But SpaceX’s team recommended handing over the Starlink contract. The formal process of canceling one contract and handing over another appears to have been skipped. Some senior FAA officials have refused to sign off on the deal, and Musk’s team has reportedly reached out to Trump’s team for support.