Bloomberg: SpaceX eyes role in US air traffic overhaul with Starlink terminals

Elon Musk’s SpaceX is working to deploy Starlink satellite internet terminals to assist in upgrading the information technology networks that support the US Federal Aviation Administration’s (FAA) national airspace system, sources familiar with the matter revealed.

This move raises potential conflicts of interest for Musk’s business ventures and the future of a $2 billion contract awarded to Verizon Communications Inc. in 2023 for the system overhaul.

According to insiders, who spoke on the condition of anonymity to Bloomberg, the details of the situation remain unclear, per Caliber.Az.

Last week, Musk authorized the shipment of 4,000 Starlink terminals to the FAA, aiming to complete the upgrade within one year. The first terminal has already been installed at the FAA’s air-traffic control technology lab in Atlantic City, New Jersey, for testing.

The impact of Starlink’s involvement on Verizon’s existing contract remains uncertain, with some questions about how the two initiatives will align. This push would extend Musk’s influence into the FAA, the agency responsible for regulating SpaceX, which is also involved in reshaping the US government under President Donald Trump.

The FAA oversees a system that manages 45,000 daily flights, transporting nearly 3 million people.

Representatives from SpaceX and the FAA have not yet responded to inquiries, while Verizon has denied the accuracy of the reports, stating they have "no indication" the information is correct.

By Tamilla Hasanova