Elon Musk's SpaceX plans to sue FAA, cites $633K fine as 'regulatory overreach'

Tech billionaire Elon Musk has announced that his aerospace firm SpaceX will sue the Federal Aviation Administration (FAA) for "regulatory overreach" after the agency proposed civil penalties for the company due to issues with its two Florida launches last year.

Musk's remarks come after the FAA announced that it is planning to levy a $633,000 fine on SpaceX because of the company's alleged failure to comply with a number of safety and licensing regulations during two of its launches in 2023.

Musk also described the FAA plan to impose fines on SpaceX as "lawfare."

"NASA puts their faith in @SpaceX for all astronaut transport to and from the [International Space Station], but somehow [FAA] leadership thinks they know better," he wrote in another post.

"I am highly confident that discovery will show improper, politically-motivated behavior by the FAA," he wrote.

According to the FAA, SpaceX used an "unapproved rocket propellant farm" for the EchoStar XXIV Jupiter mission in July 2023. Another launch in question was at the Cape Canaveral Space Force Station in Florida in June. During this launch, SpaceX used an unapproved launch control room and modified its communication plans, the regulator said.

As per a "notice of proposed civil penalty," SpaceX was informed by the FAA on June 16, 2023, two days before the launch, that the regulator would not be issuing a modification to the SpaceX license. However, SpaceX went ahead with the launch.

Despite the row between the FAA and SpaceX, the latter's Starlink is doing great, having signed a United Airlines deal where the airline would retrofit more than 1,000 planes with Starlink and offer Wi-Fi access without any cost.

"Very excited that we have about 2,500 aircraft under contract now, bringing what was effectively a startup to now what we think is a growing experience that's going to resonate with all the passengers and the airlines worldwide," said Nick Galano, SpaceX director of Starlink aviation sales and partnerships.

The satellite internet arm of Musk's company is starting to cement itself as the name to rely on when it comes to in-flight connectivity, or IFC, market. The deal with United is touted as Starlink's largest IFC agreement by far, CNBC reported.

Passengers will be able to stream, game, and shop from seatback screens and personal devices. The airline said it will take a few years to bring the service across its entire fleet.

Once the retrofitting is done, the existing Wi-Fi providers of United, namely Gogo, Panasonic, Thales, and Viasat, will be pushed out.

United said its employees will also benefit from the new service, as pilots, flight attendants, technicians, and gate agents use mobile devices to help run operations. The new service will allow employees to continue working when traditional services are impacted during a power outage or a natural disaster.