FAA Considers Cancelling Verizon Contract in Favor of Musk’s Starlink
**FAA Considers Cancelling Verizon Contract in Favor of Musk’s Starlink**
By Sylvia Varnham O'Regan
7 hours ago
Source: Washington Post
The Federal Aviation Administration is considering terminating a $2.4 billion contract with Verizon to upgrade the agency's communications platform for air traffic control and awarding the work instead to Elon Musk's Starlink, according to the Washington Post.
Granting the contract to Musk's company would pose questions around conflict of interest given Musk is leading an effort to cut costs across the federal government. The FAA also regulates SpaceX, which owns Starlink, and previously fined the company. Musk has recently used his social media platform X to criticize Verizon, posting on Monday that "The Verizon system is not working and so is putting air travelers at serious risk."
The original Verizon deal to build a new system for the FAA was awarded in 2023, with a 15-year term, and would be difficult to unwind. On Tuesday, Joseph Russo, a Verizon executive vice president, reportedly commented at an event that Verizon's system was expected to be operational soon. The FAA told the Washington Post Wednesday that "no decisions have been made" over the contract.