04:44 PM EST, 02/28/2025 (MT Newswires) -- (Updates with Verizon's response in the fourth paragraph onwards.)

The US Federal Aviation Administration is preparing to cancel a $2.4 billion communications overhaul contract currently awarded to Verizon Communications ( VZ ) , The Washington Post reported late Wednesday, citing sources with knowledge of the matter.

The project is reportedly expected to be awarded to Elon Musk's Starlink.

The FAA and Starlink did not respond to a request for comment from MT Newswires.

In a statement, a Verizon spokesperson said Starlink boss Elon Musk mistakenly identified Verizon for its ongoing upgrade of the existing FAA communications system. Musk later issued a correction on his X account, writing, "the ancient system that is rapidly declining in capability was made [by] L3Harris (LHX)."

"To be clear, the FAA systems currently in place are run by L3Harris and not Verizon," the spokesperson said. "Our company is working on building the next generation system for the FAA which will support the Agency's mission for safe and secure air travel.

Verizon is about to start its multi-year contract and its solutions to replace the old systems is ready for deployment, the spokesperson added.

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