Reports that Elon Musk’s Starlink satellite internet service may take over an FAA contract to upgrade the nation’s air traffic control (ATC) communications infrastructure have prompted concerns about procurement procedures and potential conflicts of interest amid a broader industry push for ATC modernization.

According to multiple reports, Starlink’s internet equipment has already been installed in at least two FAA facilities, with the company reportedly positioning to take over a $2.4 billion contract currently held by Verizon. The FAA has confirmed that it is testing one Starlink terminal at its Atlantic City, New Jersey facility and two terminals at “non-safety critical sites” in Alaska.

This potential shift comes at a critical juncture as the aviation industry grapples with modernizing the nation’s ATC system in the wake of the January 29 midair collision between American Airlines Flight 5342 and a U.S. Army Black Hawk helicopter near Ronald Reagan Washington National Airport that claimed 67 lives, in addition to other recent incidents.

Modernization without Privatization

The Aircraft Electronics Association, along with 33 other aviation industry groups including the Air Traffic Control Association (ATCA), recently sent a joint letter to congressional leaders advocating for significant investments in ATC modernization while explicitly opposing privatization.

That February 19 letter emphasized five priorities: emergency funding for critical ATC technology and infrastructure; divestment from legacy systems; facility realignment and modernization; additional financial mechanisms to utilize Airport and Airway Trust Fund balances; and exempting the FAA from government shutdowns.

“We are aligned on not pursuing privatization of U.S. air traffic control services and believe it would be a distraction from these needed investments and reforms,” the coalition wrote.

ATCA president and CEO Carey Fagan issued a statement emphasizing the organization’s support for President Trump’s prioritization of ATC modernization.

“It is imperative that a modernized system be comprehensive and integrated to replace obsolete technology. ATCA’s members design and build proven technologies deployed globally,” Fagan noted, adding that the organization’s industry members are “ready and willing to provide the critical knowledge and skills of experts who understand how our complex system works, guided by safety as our top priority.”

Congressional Concerns over Procurement Process

However, the potential contract shift has drawn scrutiny from lawmakers concerned about procurement procedures and potential conflicts of interest. Rep. Rick Larsen (D-Washington), ranking member of the House Committee on Transportation and Infrastructure, issued a statement characterizing the situation as potentially corrupt.

“If the FAA cancels a long-term contract with Verizon in favor of Starlink while ignoring long-established protocol, that would stink of corruption,” Larsen said. “Our committee must get to the bottom of what the hell is going on between the FAA and Starlink.”

Sen. Maria Cantwell (D-Washington), ranking member on the Senate Commerce Committee, has also raised concerns about Musk’s involvement with the FAA, particularly regarding SpaceX launch licenses. More recently, Cantwell pointed to “serious red flags” regarding the potential Starlink contract.

“Elon Musk’s tweets suggest he’s trying to interfere in the air traffic control system—including trying to cancel FAA’s $2.4 billion competitively awarded telecommunications upgrade contract in favor of a sole source installation of his Starlink services,” Cantwell said. “We need answers now about how the administration will enforce these laws to ensure aviation safety takes precedence over private gain.”

In a statement provided to AIN, an FAA spokesperson shared, “To update our air traffic control system, it will require multiple companies and multiple technologies. That is why we are testing multiple communication technologies, including satellites, fiber, and wireless to ensure the safety of the national airspace system. Beyond that, no decisions for other deployments have been made. Those decisions will be made by the FAA Administrator.”

Verizon’s Existing Contract

In 2023, the FAA awarded Verizon a $2.4 billion, 15-year contract under the agency’s FAA Enterprise Network Services procurement program to replace the older FAA Telecommunications Infrastructure contract system dating back to 2002. The contract involves providing telecommunications and information management services, including network connectivity for administrative systems and functions.

This infrastructure is intended to serve as the foundation for the Next Generation Air Transportation System. When approached for comment on the current status of this contract, Verizon had not responded by press time.

According to a recent report in Rolling Stone, FAA officials ordered staff last Friday “to begin finding tens of millions of dollars for a Starlink deal,” with discussions occurring primarily through verbal communications rather than written directives—a practice described by sources as unusual for a procurement of this magnitude.

The FAA stated on February 24 that it “has been considering the use of Starlink since the prior administration to increase reliability at remote sites, including in Alaska,” linking the initiative to requirements in the 2024 FAA Reauthorization to address telecommunications issues affecting weather information availability for the aviation community in Alaska.

Bloomberg News reported that Musk approved 4,000 Starlink terminals to be shipped to the FAA for testing, though the agency has told media outlets that “no decisions have been made” about a long-term contract to upgrade its air traffic control systems.

Musk has been publicly critical of the current system, writing on his social media platform X that the “Verizon system is not working and so is putting air travelers at serious risk.”