Elon Musk’s SpaceX Denies Reports its About to Win Major Contract to Overhaul US Airspace System
- In a nutshell: It was widely reported that SpaceX would take over a major upgrade program of the FAA's air traffic control systems at the expense of telecommunication giant Verizon.
- SpaceX and the FAA have denied those reports.
Elon Musk’s SpaceX business has refuted claims that it is about to win a major contract from the Trump administration to overhaul the nation’s antiquated air traffic control systems.
The widely reported deal, earmarked at around $2.4 billion, would have come at the expense of telecommunication giant Verizon, which has already been working on updating airspace systems for the Federal Aviation Administration (FAA).
News that SpaceX would replace Verizon as the lead vendor on the major upgrade works emerged after Musk, as the defacto head of Trump’s Department of Government Efficiency, criticized the system being developed by Verizon and claimed it was putting lives at risk.
But while Transportation Sean Duffy had openly invited representatives from SpaceX to the FAA to discuss how to bring air traffic control systems into the 21st century, neither the administration nor SpaceX ever claimed the company would be taking over the upgrade program.
Following several days of growing speculation, however, SpaceX moved to quash the rumors, posting on Musk’s X platform that the reports were nothing more than “fud.”
“Recent media reports about SpaceX and the FAA are false,” the company said in the statement.
The statement continued: “SpaceX is working in coordination with @L3HarrisTech—the prime contractor for the FAA’s telecommunications infrastructure— and the @FAANews to test the use of @Starlink as one piece of the infrastructure upgrades so badly needed along with fiber, wireless, and other technologies.”
SpaceX is to be involved in the upgrade program through its Starlink satellite communications system which has already installed a terminal at an FAA facility in Atlantic City, along with two terminals in Alaska for testing.
“Starlink is a possible partial fix to an aging system,” SpaceX said on Wednesday. There is no effort or intent for Starlink to “take over” any existing contract – that’s just FUD.”
Despite the denials, the deal still raises concerns about a conflict of interest as not only is Musk so closely embedded within the Trump administration but because the FAA is responsible for regulating SpaceX’s myriad rocket launches.
The FAA has previously raised concerns about SpaceX missions.
On Wednesday, the FAA clarified its relations with SpaceX, saying: “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.”
