Elon Musk hacks federal bureaucracy in the name of “efficiency,” but his company Starlink appears to be poised to steal billions of dollars government contracts from Verizon.
The Federal Aviation Administration is chasing a $2.4 billion contract to overhaul the communications system of the country’s air traffic control system and instead handing it over to a SpaceX subsidiary, the Washington Post reports citing two unnamed sources that described the plan. The news was also confirmed by Bloomberg and the Associated Press.
It is unclear exactly how this will unfold. Whether the FAA will hand over some of the work to Starlink is whether Verizon will continue its own efforts or simply allow it to cancel its contract with Verizon and award Starlink. Whatever the outcome, Musk is sure to raise accusations of favor, chronism and conflict of interest as despite the structural damages, continues to act as the face of government-efficient operating efforts to cut government efficiency management efforts and fire federal workers.
It is certain that it will raise serious charges of favor and conflict of interest.
Musk has been questioning the Verizon system for several days, claiming there is no evidence that it “is not working, putting air travelers at serious risk.” Today he posted to X that the Verizon communications system is “decomposed very quickly,” and that “FAA ratings are in a single digit to a catastrophic obstacle, putting air travelers at serious risk.” He also claimed that StarLink devices will be “provided free to taxpayers on an emergency basis to restore air traffic control connectivity.”
Of course, this follows the pattern. This pattern appears to be present when Musk posts to X about something about the FAA. Previously, the billionaire called for the resignation of FAA administrator Michael Whitaker after the agency fined SpaceX for failing to obtain approval for changes to Rocket’s launch. After his repeated comments, Whitaker resigned on the day of Donald Trump’s inauguration.
The team at SpaceX, the parent company of Starlink, has been helping the agency modernize its aging technology system within the FAA in recent weeks. U.S. Department of Transport Secretary Sean Duffy said he is tasked with developing “a new, better, modern, safer system.”
Several SpaceX employees now report to the post that they have FAA email addresses. One SpaceX employee posted a photo of the team on X in a statement saying, “We are working to improve the safety of our National Air Space System.”
The FAA was scheduled to make a decision to begin paying for the Verizon contract next month. However, the SpaceX team reportedly recommended that Starlink be awarded instead, the post reports, citing an unknown source with knowledge of the planning. So far, the formal process of rewinding one contract and awarding another company reportedly failed to follow. Several FAA officials have refused to sign the contract, leading Musk’s team to seek help from Trump’s appointees within the agency.
Much of the wealth of Musk comes from the large-scale government. His company has received government contracts, loans, subsidies and tax credits over the years, according to the mail.
Over the past 11 weeks, there have been four commercial aircraft crashes worldwide, with a few private plane crashes and some close mistakes. Meanwhile, the air traffic control system appears to be in disarray, with hundreds of employees being cut. Despite air travel being safer than before, many people remain aware of the global aviation system, which is falling apart at seams.
