Elon Musk’s SpaceX wants to play a part in air traffic control, according to a report.
The space technology company led by President Donald Trump’s billionaire adviser is shipping 4,000 of its Starlink satellite internet terminals to the Federal Aviation Administration (FAA) to help speed up upgrades to its ageing national airspace network, Bloomberg News reported Tuesday, citing people familiar with the matter.
Musk approved the shipment last week, the outlet said.
But the move presents two potential conflicts of interest, including extending Musk’s reach to an agency that regulates his company.
Telecommunications giant Verizon, which competes with SpaceX in some areas, was awarded a $2 billion contract to upgrade the FAA’s information technology infrastructure in 2023.
In a post on his social media network X, following the publication of Bloomberg’s report, Musk claimed Verizon’s system is failing and poses a hazard to travelers.
“Protecting Americans who rely on a safe and functioning air traffic control system is more important than ever,” Verizon told Bloomberg, in a statement. “Our enhancements will help make that happen.”
SpaceX terminals have already been installed and are being tested in New Jersey and Alaska, the FAA confirmed to Bloomberg—but the outlet reported that it’s unclear how the use of Starlink terminals could ultimately impact Verizon’s contract.
Bloomberg reported, citing a source familiar with the matter, that SpaceX’s Starlink satellite program at the FAA will be called TDM X and the company aims to have it fully operational within 12 to 18 months.
Secretary of Transport Sean Duffy already brought a team of SpaceX engineers to the FAA’s Air Traffic Control Command Center in Virginia last week as part of what officials claimed was a routine tour, although Wired reported that some of them were soon after being onboarded as senior advisers to the agency.
Meanwhile, the FAA regulates SpaceX, namely the rocket launches carried out by its aerospace business, meaning Musk’s firm could play a key role in the IT systems of an agency charged with its oversight.
Earlier this month, following the Jan. 29 collision between a passenger jet and a military helicopter near Washington, D.C., Trump criticized current air traffic control technology as “obsolete” and promised his administration would work with Congress to rethink the whole system.
“We’re all going to sit down and do a great computerized system for our control towers, brand new, not pieced together,” he said during remarks at the National Prayer Breakfast.
The FAA’s air-traffic control system oversee 45,000 flights carrying 2.9 million passengers in the U.S. daily, according to the agency’s website.
Musk’s SpaceX joining the effort to upgrade the FAA’s systems comes at the same time that he is leading a task force for Trump to pursue hundreds of billions in spending cuts across the federal government.
The companies Musk leads, which also includes electric vehicle manufacturer Tesla, already have several major contracts with federal agencies and departments.
