The Federal Aviation Administration appears likely to drop Verizon and pick Starlink, a satellite company owned by Elon Musk, to take over a contract to modernize the country's air traffic communications system, the Associated Press reported.
Starlink satellite terminals and other equipment have already been installed in FAA facilities as a prelude to its potential takeover of the $2 billion contract — won by Verizon in 2023 — government employees and contractors told the news service. Musk himself has claimed that his competitor is not up to the task, claiming on X earlier this week that "the Verizon system is not working and so is putting air travelers at serious risk." He did not provide evidence to support the assertion.
Starlink, a subsidiary of SpaceX, is aiming to use its satellite network to replace an aging ground-based communication system, the sources said, while also displacing Verizon's plan to update that system by using fiber optic cables.
The fact that Musk is simultaneously a close advisor to President Donald Trump, holds an ill-defined but sweeping role in the federal government and owns an array of companies that profit from government contracts has raised serious concerns over just how much he's potentially helping his companies get the inside track to lucrative deals with the administration he serves.
“There’s very limited transparency,” Jessica Tillipman, a contracting law expert at George Washington University told the AP. “Without that transparency, we have no idea how much non-public information he has access to or what role he’s playing in what contracts are being awarded.”
There's also concerns that a sudden shift in contract, seemingly based on personal connections to Musk, might put people's lives at risk. Former FAA officials told the AP that they were alarmed at the prospect of Starlink becoming a critical part of the aviation system without a period of testing, review and debate.
"This is corruption in plain sight," Sen. Tina Smith, D-Minn., posted on Bluesky. "Musk is getting sweetheart deals for his companies, DOGE is helping him do it, and the President is cheering him on. This isn’t about government efficiency, but making him richer."
Federal aviation isn't the only area of government that may prove profitable for Musk. The Department of Transportation and U.S. Food and Drug Administration, which regulate some of his companies, may now use a lighter touch. His supporters and former employees have already taken control of parts of the General Services Administration, which is currently offering other agencies the option to launch payloads through an existing SpaceX contract, providing Musk even more business with the federal government.
Shares