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Elon Musk has inside track to take over contract to fix air traffic communications system

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SpaceX is angling to use its constellation of satellites to replace an aging ground-based communications system that facilitates the FAA’s text and voice communication, the sources said. The Verizon contract, awarded in 2023, was to update part of that system to a more modern standard relying on fiber optic cables.

Contracting records show that nearly $200 million in work has already been done on Verizon’s 15-year modernization effort to update the FAA’s communications system. A Verizon representative said the company is unaware that the contract is being amended or terminated.

The FAA announced on X on Monday that the agency is testing a Starlink terminal at its facility in Atlantic City and two terminals at “non-safety critical sites” in Alaska. Terminals are ground-based receivers that connect devices or computers to orbiting satellites.

Another FAA contractor, L3 Harris, confirmed it was responsible for acquiring and testing Starlink terminals for incorporation into the FAA’s telecommunications infrastructure network. An L3 Harris spokesperson said the company has been working with SpaceX on the initiative for many months.

Bloomberg News reported earlier about the FAA installing Starlink terminals at its facilities.

Details about SpaceX employees deployed to work on the project are unclear, but three of its software developers appeared on a Trump administration list of government workers given “ethics waivers” to do work that could benefit Musk’s company.

Government ethics laws require that people who could profit from government work either recuse themselves from specific projects or first sell their financial holdings or sever ties with the company that could benefit. Waivers can be granted by the heads of government departments or other officials, but only in limited circumstances.

Ted Malaska, a senior director of application software at SpaceX, got a waiver along with two software engineers, Brady Glantz and Thomas Kiernan, according to the waiver list and LinkedIn profiles. The AP could not determine if the three are still working for SpaceX or the precise nature of work for the federal government.

Malaska posted on social media on Thursday that he had been meeting at FAA headquarters with officials responsible for implementation of the telecommunications modernization.

The FAA contract is not Musk’s only conflict. His acolytes have also taken over many of the operations at the General Services Administration, which controls real estate and contracting for numerous government agencies. GSA currently offers other agencies the ability to launch payloads through an existing SpaceX contract —- putting the agency in a position to direct business toward Musk. The Department of Transportation regulates aspects of SpaceX and his electric car company Tesla. NASA and the Department of Defense are major customers of SpaceX. His brain-computer interface company Neuralink has regulatory issues in front of the U.S. Food and Drug Administration.

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Republished with permission of The Associated Press.



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