FAA considering dropping $2B contract with Verizon in favor of Musk’s Starlink

The Federal Aviation Administration (FAA) has confirmed it has begun testing Elon Musk’s SpaceX Starlink internet system to improve IT networks for managing US airspace. 

Starlink looks set to take over a $2 billion contract held by internet provider Verizon. Starlink’s internet equipment has already been set up in at least two different FAA facilities as part of the transition process, AP News reported citing government employees, contractors and people familiar with the work.  

On February 25, 2025, Elon Musk criticized the FAA’s air traffic control system on X, stating that “the Verizon system is not working and so is putting air travelers at serious risk”. 

On the same day, the FAA released a statement on X, confirming that it has been “considering the use of Starlink since the prior administration to increase reliability at remote sites, including in Alaska.” The FAA noted that “Alaska has long had issues with reliable weather information for the aviation community.” 

Additionally, the FAA said it is currently testing Starlink in one terminal at its facility in Atlantic City and two terminals at non-safety critical sites in Alaska. 

However, the use of Starlink as a possible alternative to the Verizon-led initiative raises conflicts of interest in Musk’s role as both a senior adviser to US President Donald Trump and the owner and CEO of Tesla, SpaceX, and X. 

“There’s very limited transparency,” Jessica Tillipman, a law expert at George Washington University, told AP News referring to Musk. “Without that transparency, we have no idea how much non-public information he has access to or what role he’s playing in what contracts are being awarded.” 

In mid-February 2025, the Trump administration began firing hundreds of probationary employees at the FAA. David Spero, the National President of the Professional Aviation Safety Specialists (PASS) union, said that “several hundred” workers received termination notices, emphasizing that “staffing decisions should be based on an individual agency’s mission-critical needs.” The post FAA considering dropping $2B contract with Verizon in favor of Musk’s Starlink appeared first on AeroTime.

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