WASHINGTON — A significant federal contract aimed at enhancing the nation’s air traffic communications system appears to be heading towards Elon Musk’s satellite company, Starlink. Reports from government employees, contractors, and insiders reveal that Starlink equipment has been positioned within Federal Aviation Administration (FAA) facilities—a move that might lead to a shift from the $2 billion contract currently held by Verizon.
Elon Musk has publicly criticized the existing network used by air traffic controllers, describing it as outdated and in dire need of modernization. His sentiment was clear on Monday when he expressed concerns via X, the social media platform he acquired in 2022, stating that the current system poses risks to travelers’ safety.
The potential for Starlink to replace Verizon’s role unveils significant conflicts of interest owing to Musk’s dual capacity as a major White House adviser during the Trump presidency and as the leader of numerous enterprises. The specifics of his influence in aiding SpaceX, Starlink’s parent company, secure such a business deal remain uncertain.
Jessica Tillipman, an expert in contracting law at George Washington University, cautions about the lack of transparency in Musk’s engagements, which complicates understanding his impact on these contract decisions.
Ex-FAA officials express concern over the integration of Starlink into the national aviation framework, emphasizing the absence of comprehensive testing, assessment, and discussions regarding its advantages and potential concerns.
Sources indicate SpaceX intends to replace the existing ground-based communications system supporting the FAA’s communication needs with its satellite array. Verizon, which secured its contract in 2023, was tasked to bring the system up-to-date utilizing fiber optics, with records highlighting nearly $200 million worth of progress already made in its planned 15-year overhaul.
A spokesperson from Verizon noted that the company is unaware of any changes or cancellations related to its contract. Meanwhile, the FAA announced on X that they are trialing Starlink terminals at one key FAA location in Atlantic City and two non-essential sites in Alaska. These terminals function as ground receivers, linking devices to satellites above.
Another FAA partner, L3 Harris, has acknowledged its role in procuring and testing Starlink terminals for integration into the FAA communications network. Discussions between L3 Harris and SpaceX regarding this project have been ongoing for several months, as confirmed by an L3 Harris representative.
The presence of SpaceX staff working on the project is not entirely transparent. However, three software developers from the company received “ethics waivers,” allowing them to work on projects potentially benefiting Musk’s businesses. Ethics laws typically compel individuals who might financially gain from government work to step back from relevant projects, divest financial interests, or cut ties with involved companies unless granted a waiver under special circumstances.
Ted Malaska, Brady Glantz, and Thomas Kiernan are identified as waiver recipients, with their LinkedIn profiles and the waiver list offering clues to their involvement. Malaska recently shared on social media his meetings with FAA executives in charge of telecommunications modernization for the agency.
Besides the FAA contract, Musk’s corporate interests reportedly influence various government functions. His companies benefit from existing government contracts, maintaining involvement with numerous federal agencies, from launching payload systems through the General Services Administration to collaborations with NASA and the Department of Defense. Meanwhile, Neuralink, his brain interface venture, navigates regulatory challenges with the FDA.
