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CEO North America > News > Musk’s Starlink contract with FAA under scrutiny

Musk’s Starlink contract with FAA under scrutiny

in News
Starlink expected to go public in 2027

February 15, 2020, Brazil. In this photo illustration the Starlink (SpaceX) logo app is seen displayed on a smartphone.

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The Federal Aviation Agency (FAA) has announced it will use SpaceX’s Starlink internet system to upgrade its IT networks, used to manage U.S. airspace.

The pledge has raised new concerns about a potential conflict of interest for SpaceX CEO Elon Musk, as it could affect his role in the Trump Administration in recommending funding cuts at federal agencies, including the FAA.

Starlink’s satellite internet currently provides service to government and private customers around the world. The size of the contract between Space X and the FAA remains unknown.

X disclosed that it is testing its Starlink terminals in New Jersey and “non-safety critical sites” in Alaska. The post stated, “Alaska has long had issues with reliable weather information for the aviation community. The 2024 FAA reauthorization required the FAA to fix telecommunications connections to fix those needs.”

The FAA has already established a 15-year contract with Verizon to upgrade its IT. However, according to Musk, that deal may be at risk: “The Verizon system is not working and is putting air travelers at serious risk,” Musk stated on X.

Verizon spokesman Rich Young defended his company, stating, “We’re at the beginning of a 15-year contract with the FAA that will help the agency modernize its technology. Protecting Americans who rely on a safe, secure, and functioning air traffic control system is more important than ever, and our enhancements will help make that happen.”

The FAA will reportedly deploy 4,000 Starlink terminals over the next 12 to 18 months.

SpaceX, a privately held space technology company, is dependent on federal contracts, primarily from NASA.

By CEO NA Editorial Staff

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