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

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

Starlink is a subsidiary of Elon Musk's SpaceX. The report added that the upgrade is to the FAA's national airspace system. The FAA’s air-traffic control (ATC) system manages 45,000 flights carrying nearly 30 lakh passengers in the US daily.

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 the 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 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.

The report noted that this development “extends” Elon Musk's “reach” into the US aviation watchdog, which regulates SpaceX's rocket launches.

FAA Contract With Verizon to be Impacted?

The 2023 contract with Verizon supports maintenance and upgrade of the FAA's critical infrastructure, company spokesman Rich Young told Bloomberg by email. “Protecting Americans who rely on a safe and functioning air traffic control system is more important than ever. Our enhancements will help make that happen,” Young added.

The report added that the representative for SpaceX did not immediately respond to queries. While Elon Musk posted on X (formerly Twitter) saying: “The Verizon system is not working, and so is putting air travellers at serious risk. (sic)”

Sources speaking to the publication said it was unclear who using Starlink terminals would impact the FAA's current contract with Verizon.

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.”

Unperturbed by a series of plane crashes in the US, Donald Trump has fired hundreds of FAA workers, upending staff at a critical time when the US is witnessing a number of high-profile plane crashes.

So far, an American Airlines passenger collided with a military Black Hawk helicopter in Washington DC, killing all onboard. Days before the Washington DC crash, Donald Trump had dismissed all members of the Aviation Security Advisory Committee, which oversees airline and airport safety. Last week, a Delta Airlines plane crashed at Toronto International Airport, ending belly-up on the tarmac, injuring 18 passengers. Then two people died after two single-engine planes collided mid-air near the Marana Regional Airport in southern Arizona.

(With inputs from Bloomberg)