Verizon had previously been given the contract, but according to reports, a SpaceX-led FAA team is now suggesting that Starlink should get it.
Elon Musk’s startup, Starlink, seems ready to snatch a multibillion-dollar government contract from Verizon while he attacks the federal bureaucracy in the name of “efficiency.”
According to The Washington Post, which cites two unidentified officials briefed on the plans, the Federal Aviation Administration is about to revoke a $2.4 billion contract to upgrade the country’s air traffic control system’s communication technology and turn it over to the SpaceX subsidiary. The Associated Press and Bloomberg also confirmed the report.
It’s unclear exactly how this would unfold — whether the FAA would hand some of the work to Starlink while allowing Verizon to continue its own effort or simply cancel the contract with Verizon and award it to Starlink. Whatever the outcome, it is sure to raise accusations of favoritism, cronyism, and conflicts of interest, as Musk continues to serve as the face of the Department of Government Efficiency-run effort to slash spending and lay off federal workers, despite the structural damage that causes.
For a number of days, Musk has been casting doubt on the Verizon system, asserting without proof that it is “not working and so is putting air travelers at serious risk.” He wrote on X earlier today that the FAA assessment “is single digit months to catastrophic failure, putting air traveler safety at serious risk” and that the Verizon communication system is “breaking down very rapidly.” Additionally, he asserted that in order to reestablish air traffic control connectivity in an emergency, Starlink terminals would be made available at “NO COST to the taxpayer.”
Naturally, this is part of a trend where Musk seems to will something into being after posting about it on X in relation to the FAA. The billionaire previously demanded the resignation of FAA Administrator Michael Whitaker after the agency penalized SpaceX for not obtaining certification for modifications to rocket launches. Whitaker resigned on the day of Donald Trump’s inauguration due to his repeated remarks.
In recent weeks, a group from SpaceX, the parent firm of Starlink, has been assisting the FAA in updating its outdated technology system. They were entrusted with creating “a new, better, modern, and safer system,” according to US Department of Transportation Secretary Sean Duffy.
According to the Post, a number of SpaceX employees now have FAA email addresses. One SpaceX employee shared a picture of the team on X with the caption, “Working to improve the safety of the national air space system.”
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The FAA was supposed to decide whether to begin paying out the Verizon contract next month, but the SpaceX team suggested that it be given to Starlink instead, according to the Post, which cites an unnamed source with knowledge of the plans. The formal procedure of terminating one contract and awarding it to another company has reportedly not been followed thus far, and several senior FAA officials have declined to sign the contract, so Musk’s team had to a Trump appointee to assist them.
Much of Musk’s wealth comes from government generosity; the Post reports that his companies have received about $38 billion in government contracts, loans, subsidies, and tax credits over the years.
In the last 11 weeks, there have been four commercial aircraft crashes worldwide, a few private plane crashes, and multiple near-misses. Meanwhile, the air traffic control system seems to be in disarray, with hundreds of employees laid off. Although air travel is safer than it has ever been, many people feel that the world aviation system is collapsing.
SOURCE: THE VERGE
