Starlink set to take over $2.4 billion FAA air traffic control contract: Report – CNBC TV18

Starlink set to take over .4 billion FAA air traffic control contract: Report – CNBC TV18

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SpaceX’s Starlink is on the verge of securing a multibillion-dollar contract to overhaul the US air traffic control communication system, potentially displacing Verizon, a long-standing contractor. The Federal Aviation Administration (FAA) is reportedly preparing to cancel its $2.4 billion deal with Verizon and shift the work to the SpaceX subsidiary, according to The Washington Post, which cites two anonymous sources familiar with the situation. The news has been corroborated by both Bloomberg and The Associated Press.

The exact nature of how this transition might unfold remains unclear. It’s uncertain whether the FAA will partially assign the work to Starlink while letting Verizon maintain some of its responsibilities, or if the entire contract with Verizon will be scrapped in favor of Starlink.

Regardless of how it plays out, the shift is expected to spark serious accusations of favoritism, cronyism, and conflicts of interest, especially as Elon Musk continues to champion a government efficiency campaign that aims to cut spending and reduce the federal workforce, despite the potential structural damage that could result.

Musk has raised concerns over the Verizon system, claiming without evidence that it is “not working and putting air travelers at serious risk.” In a post on X earlier today, Musk argued that the Verizon communication system is “breaking down very rapidly,” adding that the “FAA assessment is single digit months to catastrophic failure, putting air traveler safety at serious risk.”

He further stated that Starlink would provide terminals “at NO COST to the taxpayer on an emergency basis to restore air traffic control connectivity.”

This is not the first time Musk has publicly called for changes within the FAA. Previously, he urged the resignation of FAA Administrator Michael Whitaker after the agency fined SpaceX for launching rockets without proper approvals. Whitaker resigned the same day Donald Trump took office, following Musk’s persistent commentary.

Recently, a team from SpaceX has been working with the FAA to modernise the agency’s outdated technology systems. US Department of Transportation Secretary Sean Duffy revealed that their task was to develop “a new, better, modern and safer system.”

Several SpaceX employees have been integrated into the FAA’s efforts, with some now using FAA email addresses. A SpaceX team member even posted a photo of their work on X, stating, “Working to improve the safety of the national air space system.”

The FAA had been scheduled to begin disbursing funds for the Verizon contract next month, but SpaceX’s team reportedly recommended that Starlink be awarded the deal instead, according to The Washington Post.

However, the formal process of transitioning from one contract to another has yet to be properly followed. Multiple senior FAA officials are said to have refused to approve the contract, prompting Musk’s team to seek assistance from a Trump-appointed official within the agency.



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