Elon Musk ships Starlink terminals for FAA upgrade, raises conflict of interest questions

Elon Musk is seeking to use Starlink’s satellite internet terminals for the update of the United States Federal Aviation Administration’s information technology networks, according to a report by Bloomberg citing sources.

Starlink is a subsidiary of Elon Musk’s SpaceX. The upgrade is to FAA’s natoonal airspace system, the report added.

However, Elon Musk’s moves have raised eyebrows, with questions being raised over conflicts of interest for Elon Musk’s companies. The sources told Bloomberg that a $2 billion contract was already awarded to Verizon Communications Inc. in 2023 for upgrade of critical infrastructure.

Elon Musk’s Starlink? Questions of Conflict of Interest Raised

Elon Musk has reportedly approved a a shipment of 4,000 Starlink terminals to the FAA last week and one such terminal has already been installed at the FAA’s air-traffic control (ATC) technology lab in New Jersey, one source told the publication.

The source added that the programme will be called TDM X, with the goal being to have the upgrades fully functional in 12-18 months.

Speaking to Bloomberg, an FAA spokesperson confirmed that testing has been completed for one Starlink terminal in Atlantic City (New Jersey) and two other terminals at non-safety critical sites in Alaska. “The FAA has been considering the use of Starlink to fix telecommunication connections to provide more reliable weather information at remote sites, including in Alaska,” the spokesperson said by email.

FAA Contract With Verizon to be Impacted?

Verizon’s contract supports the FAA in maintaining and upgrading its critical infrastructure, company spokesman Rich Young said by email. “Protecting Americans who rely on a safe and functioning air traffic control system is more important than ever,” Young added. “Our enhancements will help make that happen.”

A SpaceX representative didn’t immediately respond to a request for comment.

“The Verizon system is not working and so is putting air travelers at serious risk,” Musk posted on his X social media platform.

The people said it was unclear how the use of Starlink terminals might impact the existing Verizon contract.

The push would extend Musk’s reach into the FAA, the aviation safety watchdog that regulates SpaceX rocket launches. Musk is overseeing a broad effort to reshape the US government under President Donald Trump, and has significant contracts with federal agencies. The FAA’s air-traffic control system manages 45,000 flights carrying almost 3 million people in the US each day.

FAA Upgrades Come Amid Plane Crashes, Firings

Improving the FAA’s aging airspace network has drawn fresh attention after a deadly midair collision in January between a regional jet and a military helicopter near Ronald Reagan Washington National Airport. After the crash, Trump called current air-traffic control technology “obsolete.”

The FAA’s Starlink tests mark the latest inroads SpaceX is making with governments and businesses globally — an expansion been further accelerated by Musk’s greater political influence and reach. In December, Bloomberg reported in December that SpaceX received a Pentagon contract to expand Ukraine’s access to a more secure, militarized version of its Starlink satellite network.

(With inputs from Bloomberg)