A satellite company owned by Elon Musk has the inside track to potentially take over a large federal contract to modernize the US’s air traffic communications system. Equipment from Musk’s Starlink has been installed in Federal Aviation Administration facilities as a prelude to a takeover of a $2 billion contract held by Verizon, according to government employees, contractors and people familiar with the work.

Musk said that the network used by air traffic controllers is aging and requires drastic and quick action to modernize it.

“The Verizon system is not working and so is putting air travellers at serious risk,” Musk posted on X, the social media site he has owned since 2022.

The emergence of Starlink as a potential replacement for the Verizon-led effort underscores the extraordinary conflicts of interest inherent in Musk’s position as both a senior White House adviser to President Donald Trump and a business mogul in charge of a sprawling array of companies. It is not clear what role Musk might be playing in helping Starlink parent company SpaceX win such business.

Former FAA officials commented that they were alarmed at the prospect of Starlink being used as a critical part of the nation’s aviation system without adequate testing, review and debate about its benefits and drawbacks.

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.

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