(Bloomberg) — Elon Musk’s SpaceX is seeking to deploy Starlink satellite internet terminals to help accelerate an upgrade of the information technology networks that support the US Federal Aviation Administration’s national airspace system, according to people familiar with the matter.
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The effort raises questions about conflicts of interest for Musk’s business empire and the future of a $2 billion contract awarded in 2023 to Verizon Communications Inc. to upgrade the critical infrastructure, according to the people, who weren’t authorized to speak publicly.
Musk approved a shipment of 4,000 Starlink terminals to the FAA last week for the initiative, said one of the people. One terminal has already been installed at the FAA’s air-traffic control technology lab in Atlantic City, New Jersey, for testing, the person said.
The person familiar with the matter said the program will be called TDM X. The goal is to have the entire program fully functional within 12 to 18 months.
An FAA spokesperson confirmed the agency is testing one terminal in Atlantic City and two 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.
Representatives for SpaceX didn’t immediately respond to a request for comment. A Verizon spokesperson said the company has “no indication that these reports are accurate.”
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.
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.”
