Starlink under Elon Musk is positioned to acquire a $2.4 billion Federal Aviation Administration (FAA) air traffic control communication system modernization contract from Verizon. The $2.4 billion contract that Verizon won is set to be canceled by the FAA before SpaceX takes over the project, according to reports. This potential shift raises serious questions about preferential treatment and conflicting interests.
The FAA is conducting a review of its current agreement with Verizon based on three independent reports from The Washington Post, Bloomberg, and The Associated Press. The transfer of the contract to Starlink continues to be unclear because it could involve a full takeover or limited sections of the agreement, which has generated widespread criticism. Musk has openly criticized Verizon’s system by stating that it is declining quickly and presents risks to air passengers. He announced that the Starlink terminals would receive installation without any expense to public funds to maintain the connection.

Musk has established a standard operating procedure by attacking government agencies publicly to secure profitable business opportunities. The day Donald Trump took office as president, Michael Whitaker stepped down as FAA administrator after Musk demanded his resignation due to SpaceX facing a fine. The FAA has incorporated SpaceX employees into its operations by providing them FAA email addresses to indicate their substantial role in decision-making processes.
The FAA’s scheduled payments to Verizon were scheduled for next month, yet insiders claim that Musk’s team has pushed officials to redirect the contract. Senior FAA officials have refused to authorize the transition, which led Musk’s associates to ask for help from an FAA official appointed by Trump.
The expanding influence of Musk creates ongoing uncertainties regarding air traffic control systems stability. Recent flight accidents combined with close encounters at airports have generated significant public concern about air safety despite the fact that the industry leaders assert air travel is still safer than ever.